Gautam Adani’s conglomerate has halved its revenue growth target and plans to hold off fresh capital expenditure, people familiar with the matter said, as the Indian billionaire seeks to rebuild investor confidence in the wake of a bruising short-seller attack.
The group now aims for revenue growth of 15 to 20 percent for at least the next financial year, down from the 40 percent expansion originally targeted, said the people, who did not want to be named as the discussions are private.
Capital expenditure plans would also be scaled down, they said, as the group prioritizes bolstering its financial health over aggressive expansion.
Photo: AFP
All 10 stocks in the group dropped yesterday, with the flagship Adani Enterprises Ltd sliding as much as 10 percent. Adani Green Energy Ltd, Adani Total Gas Ltd and Adani Transmission Ltd were each down by the 5 percent limit.
The shift in policy shows how the ports-to-power conglomerate is focused on conserving cash, repaying debt and retrieving pledged shares as it scrambles to undo the damage from a scathing report by Hindenburg Research on Jan. 24.
Even though Adani Group denied the allegations of accounting fraud and stock manipulation levied by the US short seller, the report triggered a stock rout that has wiped more than US$120 billion off the Adani empire’s market value.
Holding back on investments for even as little as three months could save the conglomerate as much as US$3 billion — funds that can be deployed to pay down debt or boost the cash pile, another person said.
The group’s plans are still being reviewed and are set to be finalized in the next few weeks, the people said.
An Adani Group representative did not immediately respond to an e-mail seeking comments on its plan to slash revenue target and delay capital expenditure.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia