Adani Group cash reserves rise 13.7 pc to Rs 45,895 crore

New Delhi: Adani group companies have reported a 13.7 per cent rise in cash reserve to Rs 45,895 crore in the first half of the current fiscal as earnings across the business rose while debt was almost unchanged.

In the half-year credit performance report, Adani said while EBITDA rose to Rs 71,253 crore in April-September this fiscal from Rs 57,219 crore a year back, gross assets increased 6 per cent to about Rs 4.5 lakh crore. Gross debt was almost unchanged at Rs 2.26 lakh crore, but after considering cash reserves, the net debt at Rs 1.80 lakh crore was 3.6 per cent less than Rs 1.87 lakh crore in April-September 2022. The group's flagship incubator Adani Enterprises Ltd and ports unit Adani Ports and Special Economic Zone were top EBITDA earners. The two also account for 37 per cent of the cash balance in the group.

Adani Enterprises had the biggest debt of Rs 103,926 crore, followed by APSEZ Rs 99,901 crore and Adani Power Ltd Rs 91,742 crore. City gas firm Adani Total Gas Ltd had the lowest borrowing in the group of Rs 4,773 crore. "Each year, debt maturity is covered by funds from operations (FFO) and cash balances," Adani said. "At the portfolio level, no maturity of long-term debt is outside the FFO envelope." Adani said its portfolio is the only infrastructure portfolio in India with more than half its EBITDA with a credit rating quality equivalent to or better than sovereign quality.

"Net debt to trailing-twelve-month EBITDA now at 2.5x, lowest in 10 years," it said. Equity investments in total gross assets increased to 59.8 per cent, while debt investments were lower at 40.2 per cent, it added. While delivering an all-time high half-year profit EBITDA (earnings before interest tax and depreciation) growth of 47 per cent, over 80 per cent of the EBITDA is contractual and 68 per cent of EBITDA is A+ rated, thus providing the highest level of stability and multi-decadal cashflow visibility. "These strong cashflows have allowed unconstrained investments as reflected by the increase in asset base to Rs 4.48 lakh crore (USD 54 billion). Equity deployment is at 59.8 per cent of the total asset base, much higher than industry standards. Adani Portfolio is committed to building a world-class infrastructure and utility platform," it said.

The cash balance across portfolio companies exceeds long-term debt repayment for the next 18 months. "Despite ongoing deleveraging and higher cash balances, the portfolio companies have maintained their commitment to investment as reflected by the increase in the asset base. "Total gross assets of the portfolio increased by 6 per cent or Rs 25,240 crore (USD 3 billion) during the period, reaching Rs 4.48 lakh crore (USD 54 billion), thanks to higher equity investments supported by strong cashflows from the businesses," it said.