MUMBAI: Adani Group, the country’s fourth-largest conglomerate in terms of market capitalisation, sees no material refinancing risk and has no nearterm liquidity requirement for its portfolio companies, it said on Tuesday. This is the group’s latest attempt to defend itself as well as restore investor confidence after the scathing January 24 report by Hindenburg.
In a credit report, the group said: More than 81% of its operating profit is generated by its infrastructure businesses, which provide assured and consistent cash flow generation. The conglomerate said its consolidated grossdebt stood at Rs 2. 26 lakh crore as on September 30, 2022 and its cash balance was Rs 29,754 crore.
Net debt was Rs 1. 96 lakh crore. The credit report comes amid increased market uncertainty about the group’s future fund-raise programme after its flagship Adani Enterprises scrapped a Rs 20,000-crore further public offering this month. The report said there was “no material refinancing risk and near-term liquidity requirement as there is no near-term significant debt maturity”.
It added: “The platform has astrong asset base, which has been built over three decades that supports the resilient critical infrastructure and guarantees best-in-class asset performance over the entire life cycle. ” The portfolio level net debt to run-rate ebitda (earnings before interest, taxes, depreciation, and amortisation) ratio has decreased from 7. 6x in FY13 to 3. 2x in FY22. In the same period, run-rate ebitda has grown at a compound annual growth rate (CAGR) of 22%, whereas debt has grown at 11% CAGR.
In a credit report, the group said: More than 81% of its operating profit is generated by its infrastructure businesses, which provide assured and consistent cash flow generation. The conglomerate said its consolidated grossdebt stood at Rs 2. 26 lakh crore as on September 30, 2022 and its cash balance was Rs 29,754 crore.
Net debt was Rs 1. 96 lakh crore. The credit report comes amid increased market uncertainty about the group’s future fund-raise programme after its flagship Adani Enterprises scrapped a Rs 20,000-crore further public offering this month. The report said there was “no material refinancing risk and near-term liquidity requirement as there is no near-term significant debt maturity”.
It added: “The platform has astrong asset base, which has been built over three decades that supports the resilient critical infrastructure and guarantees best-in-class asset performance over the entire life cycle. ” The portfolio level net debt to run-rate ebitda (earnings before interest, taxes, depreciation, and amortisation) ratio has decreased from 7. 6x in FY13 to 3. 2x in FY22. In the same period, run-rate ebitda has grown at a compound annual growth rate (CAGR) of 22%, whereas debt has grown at 11% CAGR.