Adani Group’s Ebitda for this financial year is expected to cross $9.5 billion, its highest-ever, driven mainly by the infrastructure segment including cement, green energy, power and airports.
The group’s Ebitda for calendar year 2023 was at $9.5 billion, a 63.6% year-on-year rise, a 37.8% growth compared with that in FY23 and 2.5 times that of FY21 Ebitda.
“This is perhaps the best fiscal in the history of the group, with every business firing on all cylinders. The power sector has exceeded guidance, while airports, green energy and all other businesses are doing well. Green energy is also doing well, with a 60-70% growth expected from the hydrogen segment,” a source close to the development said.
As of February-end, the group Ebitda was at a little over $9 billion, and at this run rate it might even exceed the $9.5 billion mark, the source said.
The group’s net debt rise is also expected to rise to $26 billion as of FY24-end from $21 billion recorded as of FY23. Of the total $26 billion, 34% comprises global bonds, 36% vanilla debt and the remaining includes domestic debt and private equity funds raised for group companies.
Adani Group has already raised $15 billion debt, of which $6 billion was from PE funds and the remaining $9 billion was from global and domestic investors. Top 20 global banks had also pledged support to the group, which was battered following allegations of “significant governance issues” by US-based short-seller Hindenburg Research on January 24, 2023.
When contacted, a company spokesperson declined to comment on the matter.
The group’s growth is expected to continue across all its businesses — including flagship firm Adani Enterprises (AEL) to Adani Energy Solutions (AESL), Adani Green Energy (AGEL), Adani Cements, Adani Ports and Special Economic Zone (APSEZ) and Adani Total Gas (ATGL) — in FY25 as well.
In December 2023, the Ahmedabad-based conglomerate had earmarked a total investment of $100 billion over the next decade as group firms transitions to use of green energy. Five of its group companies were aiming to be net zero in emissions by 2050, while it had also pledged to plant 100 million trees by 2030.
Earlier in February, Adani Group had said it had a healthy cash balance of Rs 44,572 crore ($5.4 billion) as of December-end 2023. The group portfolio continues to remain “conservatively” leveraged with a net debt to Ebitda as low as 2.5 times, debt coverage of 2.1 times and gross assets to net debt at 2.5 times as of September 30, 2023.