The Adani Group on Monday said it has sufficient cash to cover more than 30 months of debt servicing. It said its cash balances accounted for 24.8% of gross debt at the end of Q1FY25 as compared to 17.7% in corresponding quarter of previous financial year.
The statement is being perceived as a move to alleviate concerns about the Group’s liquidity risk at a time when it is looking to raise funds for its flagship firm Adani Enterprises.
The power to airports conglomerate observed in a Q1FY25 earnings update that its portfolio companies posted a 50.1% jump in profit after tax (PAT) in Q1FY25.
Earnings before interest tax, depreciation and amortisation or EBITDA went up 32.9% YoY in Q1FY25, the Group said in a release. It said leverage was at multi-year low a at 2.2x as on March 31, 2024)
The EBITDA growth is largely driven by the Group’s “highly stable and resilient core Infrastructure” platform, which constitutes over 80% of the portfolio EBITDA and saw a remarkable 41.6% growth YoY in Q1, it said.
The ‘Core Infrastructure’ platform comprises—Adani Enterprises (AEL)’ infrastructure businesses, Utility (Adani Green Energy, Adani Power, Adani Energy Solutions, and Adani Total Gas) and transport (Adani Ports & SEZ) businesses.
AEL’s infrastructure businesses’ steadily rising contribution is playing a significant role in this growth, with EBITDA expanding by 69.98% YoY., it said.
“Growth is powered by Adani Enterprises’ emerging businesses—Solar and wind manufacturing (part of green hydrogen production chain), airports and roads,” Adani Group said.These businesses now contribute 13.3% to the portfolio-level EBITDA, up from 7.2% a year ago, it said.
The Solar module manufacturing business saw module sales rise 125% YoY in the quarter. Furthermore, photovoltaic cell lines becoming operational lowered costs resulting in higher profitability.
The airport business continues to see strong growth from rising passenger movement, increasing consumer offerings, and the addition of routes, airlines, and flights across seven operational airports.
The utility segment saw EBITDA increase by 41.44%. Adani Power achieved a 53.6% increase in EBITDA, driven by a 38% rise in sales. Adani Green Energy also reported a strong performance, with EBITDA growing by 30.3% as operational capacity expanded by 31%, it said.
Adani Ports & SEZ achieved a 29.62% increase in EBITDA. During the quarter, the company successfully signed two new port concession agreements and secured one new port Operations and maintenance (O&M) contract.