Adani Group stocks were trading in the green territory on Monday. Adani Enterprises Ltd, Adani Ports & Special Economic Zone Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Total Gas Ltd, and Adani Wilmar Ltd all saw their stock prices jump by 0.8 per cent to 4 per cent. Adani Green Energy Ltd shares, on the other hand, were trading in the red.
This comes after the Gautam Adani-led conglomerate said it was eyeing Rs 90,000 crore in Ebitda (earnings before interest, taxes, depreciation and amortisation) in the next two-three years. This is against the current annual Ebitda of around Rs 50,000 crore.
The targets came five months after the US-based short seller Hindenburg Research’s scathing report and days after reports of US authorities investigating the representations made by the Adani Group to its US investors, in response to the Hindenburg Research report.
The Adani group sees Ebitda growing by more than 20 per cent annually on a consolidated basis in the next few years as it pursues sustainable growth across its business range. The group’s listed portfolio Ebitda jumped 36 per cent year-on-year (YoY) to Rs 57,219 crore in FY23. Core infrastructure businesses, which account for 82.80 per cent of the portfolio including energy, transport, logistics, and flagship Adani Enterprise Ltd’s infrastructure ventures, registered a 23 per cent YoY growth in Ebitda to Rs 47,386 crore.
With about 83 per cent of its Ebitda being generated from core infrastructure businesses, the Adani Group’s portfolio operates in utility and infrastructure sectors, providing assured and consistent cash flows. The group has set its sights on growth across diverse sectors such as airports, renewables, solar panels, ports, power, cement and transmission.
Last year saw Adani’s portfolio growing at 36 per cent and also its net debt to Ebitda ratio improving.
The portfolio’s combined net debt to Ebitda improved to 3.27 times in FY23 from 3.8 times in FY22. The net debt to run-rate EBITDA improved to 2.8 times in FY22 from 3.2 times FY23 which highlights the group’s strong financial discipline amidst the strong growth, the note said.
The Adani group management said there is no significant debt maturity looming in the near-term, indicating no material refinancing risk or near-term liquidity requirement. The net asset value of gross assets stands at Rs 3,91,000 crore. Over time, the group has diversified its long-term debt portfolio and reduced its exposure to banks while expanding its funding sources. The current debt is distributed among bonds (39 per cent), global international banks (29 per cent), PSU and private banks and NBFC (32 per cent).
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