Comfortable liquidity, enough debt cover for 28 months: Adani group

Group reports Rs 53K cr cash buffer, robust operational cash flow amid bribery charges

Adani group has claimed to be in a “comfortable liquidity” position, reporting cash balances of Rs 53,024 crore, constituting 20.53 per cent of the entity’s gross debt of Rs 2,58,276 crore as of September 30, 2024.

 

In a credit update for the first half (H1) of 2024–25 (FY25), the group said its existing cash balances provide liquidity cover for about 28 months of debt servicing.

 

The port-to-energy conglomerate said that its annual debt maturities for each year until 2033–34 are lower than its current operating cash flow as of September 2024, suggesting that it can meet its debt obligations through operational cash generation.

 

 

The group’s debt portfolio comprises domestic banks (42 per cent), global banks (27 per cent), global capital markets (23 per cent), domestic capital markets (5 per cent), and other debt financing sources (3 per cent).

 

Further, the group has deployed 63 per cent of its equity to assets. On a trailing 12-month (TTM) basis, its earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at around $9.96 billion, reflecting a year-on-year (Y-o-Y) growth of 17 per cent. Its infrastructure businesses contributed 84 per cent of its total Ebitda.

 

The group said that its net debt-to-Ebitda ratio improved to 2.46 times as of September 2024 (TTM). It also noted that its run-rate Ebitda — Ebitda annualised for newly commissioned assets — now stands at Rs 88,192 crore, marking a 22.1 per cent Y-o-Y increase. Core infrastructure businesses (utility, transport, and infrastructure operations under Adani Enterprises) accounted for 86.8 per cent of the total Ebitda in H1FY25.

 

The group’s total asset base reached Rs 5.53 trillion as of H1FY25, reflecting an increase of Rs 75,277 crore during the period.

 

The group’s gross asset-to-net debt ratio improved to 2.7 times in H1FY25 from 2.63 times in 2023–24.

 

The group’s response follows allegations made by the US Department of Justice and the US Securities and Exchange Commission of bribery and fraud against directors of Adani Green, including Gautam Adani, his nephew Sagar Adani, and six others. The conglomerate has denied these accusations, calling them “baseless” and asserting that “all possible legal recourse will be sought”.

 

On Monday, Adani group saw a decline of Rs 10,458 crore in the overall market capitalisation of its listed entities.