Adani Group: Have enough liquidity to repay debts for 30 months

The Adani Group has issued a statement saying billionaire Gautam Adani’s conglomerate has enough liquidity to take care of debt payments for 30 months.

The group said gross debt amounted to Rs 2.41 trillion in June end with 24.77 per cent of the amount being accounted by cash balances, up from 17.7 per cent in the previous year.

“24.77 per cent of gross debt is in form of cash balances providing liquidity cover 30 months of debt servicing,” the statement from the group said.

The Squirrels had reported on Monday how the group’s results for the first quarter of the fiscal year 2024-’25 (Q1 FY25) revealed a robust performance, with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) touching Rs 22,570 crore, recorded at a growth rate of 32.87 per cent year on year. The resultant 12-month EBITDA in comparison to that of the past year witnessed a 45.13 per cent surge, reaching Rs 79,180 crore.

The conglomerate’s net profit increased to Rs 10,279 crore in the first quarter (April to June) of the current fiscal year of 2024-’25, or FY25, marking a rise of over 50 per cent.

“The consistently advancing EBITDA is largely driven by the Group’s highly stable and resilient ‘core infrastructure’ platform, which constitutes over 80 per cent of the portfolio EBITDA and saw a remarkable 41.6 per cent growth year-on-year in Q1,” the statement said.

The group’s core infrastructure platform that led the robust growth includes Adani Power, Adani Total Gas, Adani Energy Solutions and Adani Green Energy, besides Adani Ports and Special Economic Zones (SEZ).

Adani Power registered a growth of 53.6 per cent to touch Rs 3,490 crore, while Adani Green Energy saw a surge of 30.3 per cent in operational capacity with EBITDA reaching Rs 2,866 crore. Together, these two entities were responsible for a 41.44-per cent EBITDA increase in the group’s utility segment, the Squirrels report had stated. Ports and SEZ recorded an EBITDA surge of 29.62 per cent, and the group bagged new concession deals in the fiscal year.

EBITDA of the group’s flagship, Adani Enterprises Limited (AEL), increased to Rs 4,487 crore marking a 46-per cent rise with net profit scaling Rs 1,776 crore in the April-June period.

Emerging ventures of the group — including solar and wind power, and airports — added up to 13.3 per cent of the EBITDA, compared to 7.2 per cent in the previous year, the news report said. The solar module manufacturing sector of Adani Enterprises registered a 125 per cent growth in sales year on year. The group’s solar unit at Mundra is India's first and biggest vertically integrated solar manufacturer.

“The strong performance for the quarter was led by Adani Enterprises’ emerging businesses, including solar and wind manufacturing — India’s largest and part of a fully integrated green hydrogen chain — as well as its airports and roads sectors. These fast-growing businesses now contribute 13.3 per cent to the portfolio-level EBITDA, up from 7.2 per cent a year ago. This expansive yet resilient growth is attributed to Adani’s strategic focus on its infrastructure platform, which provides high stability and predictability,” the group said.

The group’s cement business saw promoters investing Rs 15,000 crore in Ambuja Cements during March and April in two stipends, fully subscribing to the warrant program and pouring in Rs 20,000 crore since the group acquired the brand in September 2022. The group has also bought Penna Cement, raising annual cement capacity to around 89 million tonne.