Adani group said that, through a series of strategic initiatives, it has increased the company’s total equity deployment to Rs 2.36 lakh crore till date, which constituted 55.77 per cent of total gross assets of the group company. The total equity constituted 40.16 per cent of total gross assets at the end of FY19. “For the first time, the equity deployed increases to more than half the total assets – at 55.77 per cent; equity for FY23 was Rs 2.36 lakh crore against net debt of Rs 1.87 lakh crore,” it said in a statement. Adani group posted the highest ever cash balance at portfolio level of Rs 42,115 crore at the end of the June quarter, which is Rs 1,764 crore higher than at the end of the preceding March quarter.
It further stated that for the first time, the portfolio’s net debt to EBITDA (run-rate) fell below 3x — at 2.81x in the last ten years. At the end of FY23, gross assets to net debt was 2.3x, and net debt to equity was at 0.8x. The group’s debt coverage ratio improved to 2.02x for the entire fiscal as compared to 1.47x for FY22. “More than half of the portfolio EBITDA is from the businesses that enjoy ratings equal to the sovereign rating of India. Such high ratings have allowed continued capital market access,” Adani group said.
EBITDA and gross assets have grown at a much faster rate in the last four years (FY19 to FY23) at a CAGR of 18.13 per cent and 21.7 per cent respectively, the company said. Also, EBITDA in the June FY24 quarter increased by 42 per cent year-on-year and was more than 40 per cent of the entire FY23. Meanwhile, net debt has grown at only 14.5 per cent CAGR, resulting in consistently improving leverages ratios.
“The core infrastructure and utility platform accounted for 83 per cent of total EBITDA in FY23 and 86 per cent in the June FY24 quarter. Contractual businesses accounted for 82 per cent of the portfolio EBITDA in FY23. Such a high contribution offers great stability and multi-decadal visibility on earnings,” the company said.
It further added that its diversified finance sourcing from global as well as domestic banks, capital markets and others has eliminated concentration risk. “The conservative planning has provided for a robust maturity cover. Maturity profile of debt for all the companies exceeds the cover period in all cases, ensuring refinancing protection and eliminating systemic risks,” Adani group said. The group’s free funds flow plus cash for FY23 was 2.72x against average debt maturity cover of 6.55 years, thus eliminating refinance risks.