Adani touts cash, double-digit EBITDA growth to reassure investors

Adani Group on Thursday stated it has sufficient money to service debt obligations and that its enterprise achieved file pre-tax earnings within the 12 months ending December 2024 because it regarded to reassure collectors and traders of a strong enterprise profile. Money balances exceed long-term debt repayments for the following 28 months, whereas portfolio-level money balances had been at Rs 53,024 crore, the port-to-power conglomerate stated in a report for the primary 9 months of the monetary yr ending March 2025 launched on Thursday. “Adequate liquidity is maintained throughout portfolio firms to cowl debt servicing necessities for no less than the following 12 months,” it stated.

The money steadiness as of September 30, 2024, in contrast with the Rs 59,791 crore steadiness generated within the full 2023-24 monetary yr (April 2023 to March 2024 or FY24 fiscal).

Money steadiness represents 20.5 per cent of gross debt.

“These increasing money flows have enabled constant investments whereas maintaining the leverage at an all-time low. As on September 30, 2024, FFO or money after tax for the trailing 12 months was at Rs 58,908 crore,” it stated.

The group has a powerful asset base of Rs 5.53 lakh crore constructed over three many years, in accordance with the report. Adani stated its gross property to internet debt ratio improved to 2.7 instances throughout the first half of the present fiscal yr in comparison with 2.63 instances within the earlier yr. Gross debt stood at Rs 2.58 lakh crore, up from Rs 2.41 lakh crore on the finish of FY24. After accounting for money steadiness, internet debt was Rs 2.05 lakh crore, up from Rs 1.81 lakh crore internet debt on the finish of March 2024.

For the 12-month interval ending December 2024, EBITDA touched Rs 86,789 crore, marking a ten.1 per cent year-on-year progress. Adjusted for prior revenue, the expansion stands at 21.3 per cent. Within the December quarter alone, EBITDA rose 17.2 per cent to Rs 22,823 crore.

In accordance with the report, key to this progress are the rising companies underneath Adani Enterprises (AEL), together with photo voltaic and wind manufacturing and airports. These companies, a part of AEL’s infrastructure division, grew 45 per cent YoY within the December quarter and 33.3 per cent within the trailing 12-month interval.

Since FY19, the Adani Portfolio has proven robust progress, with EBITDA increasing at a CAGR of 25 per cent, regardless of challenges such because the Hindenburg report and the continued US indictment.

Round 85 per cent of the group’s earnings come from its infrastructure companies, notably utilities and transport. The infrastructure sector globally is acknowledged because the sector that lends a excessive degree of predictability for cashflows.

This constant efficiency has resulted in steady ranking upgrades for all Adani firms, with no downgrades within the final 5 years. The group plans to make use of incremental money flows from these earnings as main drivers for capital expenditure within the years forward.

“Extremely steady ‘core infrastructure’ portfolio continues to energy money movement technology, with 84 per cent contribution to the full portfolio EBITDA,” Adani stated.

This core infrastructure platform includes -AEL’s incubating infrastructure companies, utility (Adani Green Energy, Adani Power, Adani Energy Solutions, and Adani Total Gas), and transport (Adani Ports and SEZ) companies.

“The credit score profile has now achieved a major milestone with 75 per cent of the run-rate EBITDA now generated from property with home scores of ‘AA-‘ and above,” it stated.

“Adani Enterprises’ incubating infra companies (ANIL, airports, and roads) are on a excessive progress trajectory and proceed to guide the expansion with EBITDA progress of 45.6 per cent Y-o-Y in Q3FY25 and 33.3 per cent within the trailing 12-month”.