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BUSINESS EYE SEPTEMBER 01, 2023 | The Indian Eye 30

Adani Group shows improved cash

reserves to service debts amid profits

Cash flow generated from business operations and balances stood at 778.9 billion rupees ($9.4 billion) as

of end-March. That provides enough liquidity for the company to cover its debt due this financial year

OUR BUREAU
Mumbai/New Delhi

he Adani Group has said that
cash and profit generated
Tfrom its sprawling infrastruc-
ture business can cover all the debt
maturing each year in the coming
decade, messaging that’s part of the
Indian conglomerate’s latest effort to
shore up investor confidence months
after a damaging short seller attack.
In a credit report released Thurs-
day, the power-to-port conglomer-
ate founded by billionaire Gautam
Adani said its cash flow generated
from business operations and bal-
ances stood at 778.9 billion rupees
($9.4 billion) as of end-March. That
provides enough liquidity for the
company to cover its debt due this
financial year.
Should the conglomerate manage
to maintain such cash flow and cash
holdings going forward, that would
be sufficient to service its expected
obligations each year in the next de-
cade, according to the presentation. The robust portfolio performance was primarily driven by the renewable power business under Adani Green (ANI)
Nearly 60% of its debts were
from banks, while the rest are bonds improved debt servicing capabilities lio EBITDA, which is the net income probe into whether billionaire Gau-
raised from both Indian and offshore also comes at a time when investors before taking out interest, tax, depre- tam Adani’s conglomerate violated
markets. International lenders saw are waiting for the findings from the ciation, and amortization expenses. securities laws and will take any action
their share in the Adani’s total bank country’s markets watchdog. The Se- The robust portfolio perfor- required based on its findings, it said
credit jump to 28% from 18% a year curities and Exchange Board of India mance was primarily driven by the in a Supreme Court filing on Friday.
ago. The group’s total debt stood at has looked into some of the allega- renewable power business under The Securities and Exchange
2.3 trillion rupees by end-March, up tions made by Hindenburg and has Adani Green, infrastructure busi- Board of India (SEBI) said it has been
from 1.89 trillion rupees a year earlier. asked the nation’s Supreme Court nesses under Adani Enterpris- investigating 24 transactions involv-
On Wednesday, the conglomer- for an extension to wrap up its probe es, and cement businesses under ing the group’s listed companies, and
ate said it posted record profit in the by the end of August. Adani Cement. Adani Green re- has completed its work on 22 of them.
quarter ended June on the back of its This gives a high level of stabil- ported EBITDA of Rs 2,200 crore, It said it examined 13 Adani
infrastructure and renewable energy ity and multi-decadal earnings pre- a 67 per cent rise year-on-year. group dealings for possible violations
businesses. dictability and visibility. The robust This was on the back of an in- of related-party transaction rules.
Showcasing a stronger cash po- profits have resulted in the portfolio crease in operational capacity by 43 The regulator in Friday’s report also
sition and bumper earnings under- gaining a very strong liquidity posi- per cent to 8,316 MW. The adjacent said its investigation on some off-
scores the continued effort by the em- tion. The cash balance at the end of cement business also showed a strong shore deals covered 12 foreign port-
battled conglomerate to get over from June 2023 was Rs 42,115 crore, 4.2 operating performance because of folio investors who were public share-
the broadside in January by Hinden- per cent higher than a quarter ago. cost optimization and improving syn- holders of Adani group companies.
burg Research. The US short seller The success of the incubation ergies. EBITDA per tonne increased Following the Adani group
accused the company of widespread story continued under Adani Enter- to Rs 1,253 from Rs 888 in June 2022 firms’ share price losses earli-
corporate malfeasance — allegations prises. Airports, green hydrogen and quarter and Rs 1,079 in March 2023 er this year, the Supreme Court
that wiped out at one point more than other businesses under the flagship quarter. As a result, EBITDA of the asked SEBI to look into the Hin-
$150 billion in market value from its incubator saw their profits almost cement business grew 54 per cent denburg allegations and submit
listed companies, but has also been double year-on-year. With an EBIT- YoY to Rs 1,935 crore. its findings to a six-member panel
vehemently denied by Adani. DA of Rs 1,718 crore, these business- Meanwhile, India’s market reg- formed in March, which included a
The company’s disclosure of es contributed 7 per cent to the portfo- ulator has very nearly completed its retired judge and veteran bankers.

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