Adani Group Highlights Strong Liquidity Amid Allegations

The Adani Group has reported a cash balance of ₹53,024 crore, representing 20.53% of its total debt of ₹2,58,276 crore as of September 30, 2024. The group emphasised that its current cash reserves provide sufficient liquidity to cover 28 months of debt servicing.

Debt and Cash Flow Management

The group noted that its annual debt repayments until FY34 are lower than its current operating cash flow, indicating its ability to meet obligations through operational earnings. Its debt portfolio includes funding from domestic and global banks, capital markets, and other sources. Additionally, 63% of its equity has been deployed in assets, showcasing its robust financial structure.

Earnings and Financial Ratios

Adani’s earnings before interest, tax, depreciation, and amortisation (EBITDA) reached $9.96 billion on a trailing 12-month basis, marking a year-on-year increase of 17%. Infrastructure businesses contributed 84% of the total EBITDA, while core sectors such as utility, transport, and infrastructure comprised 86.8% of H1FY25 EBITDA.

The net debt-to-Ebitda ratio improved to 2.46 times, and run-rate EBITDA, accounting for new assets, stood at ₹88,192 crore, reflecting a 22.1% year-on-year growth. The gross asset-to-net debt ratio increased to 2.7 times in H1FY25 from 2.63 times in FY24.

Asset Base Growth

The group’s total assets reached ₹5.53 trillion, with an increase of ₹75,277 crore during H1FY25, further strengthening its financial standing.

Denial of Bribery Allegations

The group responded to allegations of bribery and fraud by the US Department of Justice and the SEC against directors of Adani Green, including Gautam Adani and Sagar Adani. It dismissed the claims as baseless and confirmed plans to pursue all legal remedies.

Market Impact

Despite these developments, the market capitalisation of Adani’s listed entities fell by ₹10,458 crore on Monday, reflecting investor concerns surrounding the allegations.

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