Adani's cash reserves can cover debt payments for 2.5 years
The Adani Group has reported a significant increase in its cash reserves, which now account for 24.8% of the company's gross debt. This figure marks an increase from the previous year's 17.7%, as per the firm's latest earnings report. The conglomerate also revealed that its current financial resources are sufficient to manage over two and a half years of debt repayments.
EBITDA surges by 33%
The Adani Group's earnings before interest, tax, depreciation, and amortization (EBITDA) witnessed a significant rise of 33% in the quarter ending June 30. The EBITDA reached approximately ₹225.70 billion, marking a robust financial performance for the company. This positive trend coincides with plans by Adani Enterprises, the group's flagship firm, to raise between ₹100 billion and ₹120 billion through a share sale.
Gross debt and future plans
As of the end of the first quarter, the Adani Group's gross debt stood at ₹2.41 trillion. This disclosure comes amid plans for fresh fundraising by its flagship unit, following a successful $1 billion raise by its energy transmission division. The proposed financing and indications of enhanced cash flow are expected to bolster investor confidence in the conglomerate.
Adani Group denies allegations of fraud
The Adani Group has been under scrutiny since US short-seller Hindenburg Research accused it of widespread fraud and corporate malfeasance in early 2023. These allegations led to a significant market value loss for the company, with over $150 billion being wiped out at one point. However, the Adani Group has consistently denied these claims and continues to work toward restoring investor confidence.
