June 26th 2023.
The Adani Group is aiming for a 20% year-on-year growth in pre-tax profits to reach Rs 90,000 crore EBITDA in the next 2-3 years. This growth is expected to come from sectors such as airports, cement, renewables, solar panels, transportation and logistics, and power and transmission. The group is making substantial investments in ports and other projects across renewables, transportation and ports.
Earlier this month, the group repaid loans amounting to USD 2.65 billion to reduce its overall leverage and restore investor trust after a US short seller released a damning report. It is now looking to drive robust and sustainable growth across its business portfolio.
The group's listed portfolio EBITDA increased 36% yoy to Rs 57,219 crore in FY23. Core infrastructure businesses, which constitute 82.8% of the portfolio, registered a 23% yoy growth in EBITDA to Rs 47,386 crore. Its existing businesses also delivered a strong performance with a 59% yoy growth to Rs 5,466 crore.
The group's net debt to EBITDA improved to 3.27 times in FY23 from 3.8 times in FY22. Adani Group affirms that there is no significant debt maturity looming in the near-term, indicating no material refinancing risk or near-term liquidity requirement.
The Adani Group recently tied up the largest data centre project financing in India, with USD 213 million tied up from six international banks. This highlights the finance provider's confidence in Adani Portfolio and its businesses.
US short-seller Hindenburg Research had released a report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about USD 145 billion in the conglomerate's market value at its lowest point. However, Adani Group has denied all allegations and is plotting a comeback strategy.
The group's net asset value of gross assets stands at Rs 3,91,000 crore. It has diversified its long-term debt portfolio and reduced its exposure to banks while expanding its funding sources. The net debt to run-rate EBITDA improved to 2.8 times in FY22 from 3.2 times FY23 which highlights the group's strong financial discipline amidst the strong growth.
The cash balance and FFO are much higher than debt maturity cover for FY24, FY25 and FY26 of Rs 11,796 crore, Rs 32,373 crore and Rs 16,614 crore, respectively, at the combined portfolio level. This is further evidence of the group's commitment to financial discipline.
Overall, Adani Group is well-poised to achieve its target EBITDA of over Rs 90,000 crore by FY23. The group is making substantial investments, expanding its funding sources, and exhibiting strong financial discipline. All of this bodes well for Adani Group's future and its ability to deliver robust and sustainable growth.
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