Mumbai, Adani Group, led by Gautam Adani, witnesses a remarkable surge in cash reserves, registering a significant 13.7% increase, poised to breach the ₹46,000 crore mark soon.
In the first half of the current fiscal year, Adani group companies reported a robust cash reserve of ₹45,895 crore, attributing the rise to increased earnings across various business sectors. The earnings before interest, tax, depreciation, and amortization (EBITDA) rose to ₹71,253 crore, reflecting a substantial growth from ₹57,219 crore in the previous fiscal year.
Gross assets saw a 6% uptick, reaching approximately ₹4.5 lakh crore. Despite this growth, gross debt remained nearly unchanged at ₹2.26 lakh crore. However, factoring in cash reserves, the net debt stood at ₹1.80 lakh crore, indicating a 3.6% reduction compared to the same period in 2022.
Adani Enterprises Ltd and Adani Ports and Special Economic Zone emerged as the top EBITDA earners, contributing 37% to the group’s overall cash balance. Notably, Adani Enterprises held the highest debt of ₹103,926 crore, followed by APSEZ at ₹99,901 crore, and Adani Power Ltd at ₹91,742 crore.
Adani Group emphasized its commitment to financial prudence, highlighting that debt maturity is covered by funds from operations (FFO) and cash balances. The net debt to trailing-twelve-month EBITDA is at 2.5x, marking the lowest in the past decade.
The portfolio companies maintained a credit rating quality equivalent to or better than sovereign quality, showcasing the stability and multi-decadal cash flow visibility of over 80% of EBITDA being contractual. The cash balance across portfolio companies is well-positioned to cover long-term debt repayment for the next 18 months.
Despite ongoing deleveraging efforts, Adani Group continues to invest and expand its asset base, reaching ₹4.48 lakh crore (USD 54 billion), reflecting a commitment to building a world-class infrastructure and utility platform.
By PTI
