Sunday, October 1, 2023

Adani Group deployed more than Rs 2.36 trillion worth equity as of FY23

Adani Group deployed more than Rs 2.36 trillion worth equity by the end of FY23, which was more than half of its total gross assets, through various strategic initiatives. The deployment was from FY14 and had the highest-ever cash balance of Rs 42,115 crore as of FY23-end, Financial Express reported.

The cash balance was higher by Rs 1,764 crore from the end of last fiscal and the group had a net debt of Rs 1.87 trillion as of FY23-end. The total equity deployed has increased to 55.77% of the total assets, which stood at 40.16% as of FY19-end, the group said in a credit report released on Thursday.

For the first time, the net debt to Ebitda (run-rate) of the group’s portfolio companies fell below 3 times, at 2.81 times, in the last ten years. The group’s portfolio firm’s Ebitda and gross assets grew at an annual rate of 18.13% and 21.7%, respectively, over the past four years (FY19 to FY23), it said.

“The portfolio companies diligently focused on bolstering their financial standing, ensuring a robust foundation for their ambitious projects,” it added.

The gross assets to net debt stood at 2.3 times and net debt to equity stood at 0.8 times as of FY23-end. The group’s portfolio companies’ debt coverage ratio improved to 2.02 times in FY23, compared with 1.47 times in FY22.

Its free funds flow plus cash for FY23 was at 2.72 times against average debt maturity cover of 6.55 years, thus eliminating refinance risks.

Through a 10-year equity programme, with long-only global investors formulated in 2016, the Adani portfolio has attracted over $9.5 billion (does not include the recent stake sale in Adani Power to GQG Partners) since 2019. This programme supported strategic priorities, including pre-payment of margin-linked share-backed financing.
The promoter-level entity has generated Rs 30,900 crore (does not include recent stake sale in Adani Power to GQG Partners) through secondary market transactions since March 2023.

On Wednesday, Adani Group said it posted a 42% on-year rise in Ebitda at Rs 23,532 crore for the first quarter of this fiscal, the highest in a quarter, mainly driven by its infrastructure and utility segment. The company had earned nearly the same profit for the full year of 2019, the group said in a results compendium of its listed companies.

This lends a “high-degree of stability and multi-decadal visibility and predictability”, it said, adding, the core infrastructure and utility segment generated Ebitda of Rs 20,233 crore and accounted for 86% of portfolio-level Ebitda.



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