According to a company note, the Adani group, which has been facing challenges, is aiming for a 20% year-on-year growth in pre-tax profits to reach ₹90,000 crore EBITDA within the next 2-3 years. This growth is expected to come from various sectors such as airports, energy, cement, renewables, transportation, logistics, power, and transmission. The group has recently repaid loans amounting to USD 2.65 billion as part of a prepayment program to reduce overall leverage and regain investor trust after a negative report from a US short seller.
Adani’s robust investments in ports and successful projects in renewables, transportation, and ports have contributed to the growth of its listed portfolio. The group’s core infrastructure businesses, including energy, transport, logistics, and Adani Enterprise Ltd’s infrastructure ventures, have shown significant year-on-year growth in EBITDA. Adani Enterprise Ltd’s existing businesses have also performed strongly.
With a focus on core infrastructure businesses, which generate approximately 83% of its EBITDA, the Adani group operates in utility and infrastructure sectors, ensuring consistent cash flows. The group has made progress in reducing its net debt to EBITDA ratio and maintains strong financial discipline. There are no immediate concerns regarding debt maturity, refinancing risk, or liquidity requirements.
The group’s net asset value of gross assets is ₹3,91,000 crore. Adani has diversified its long-term debt portfolio, reduced exposure to banks, and expanded funding sources. The majority of the group’s debt is distributed among bonds, global international banks, PSU and private banks, and NBFCs. The group’s exposure to total bank exposures in India is less than 1%, and leading Indian banks have expressed confidence in its debt/equity to EBITDA ratio.The overall net debt ratio for the portfolio decreased from 3.8 times in FY22 to 3.27 times in FY23. The net debt to run-rate EBITDA ratio decreased from 3.2 times in FY23 to 2.8 times in FY22, demonstrating the group’s good financial restraint despite the robust expansion, according to the note. The Adani Group’s management confirms that there are no impending substantial loan maturities, which means there is no immediate need for funding.
Gross assets have a net asset value of Rs. 3,91,000 crore. The group has gradually increased its funding sources, diversified its long-term debt holdings, and decreased its dependence on banks. Bonds account for 39% of the total debt, followed by foreign banks on a worldwide scale (29%), PSU and private banks, and NBFCs (32%). The Adani Group has fully repaid USD 2.15 billion in loans that were obtained by using shares in the conglomerate’s publicly traded companies as collateral, as well as another USD 700 million in loans obtained for the purchase of Ambuja Cement.
In conclusion, the Adani group is focused on achieving robust and sustainable growth across its business portfolio. It is actively taking steps to strengthen its financial position, reassure investors, and overcome recent challenges. At the combined portfolio level, debt maturity cover for FY24, FY25, and FY26 was ₹11,796 crore, ₹32,373 crore, and ₹16,614 crore, respectively. Cash Balance and FFO, at ₹77,889 crore, are significantly higher.
