Adani Group Says $2.65-Billion Deleveraging Complete; Cash Balance Rises
Cash balance of the listed portfolio has risen to $4.75 billion in FY23, says the conglomerate.
The Adani Group announced that it has completed its $2.65 billion deleveraging programme, improving its major key financial metrics.
The Gautam Adani-owned conglomerate has completed full prepayment of margin-linked share backed financing totalling $2.15 billion until March 12, before the due date of March 31, 2023, according to a statement.
The listed companies' portfolio cash balance rose 41.5% year-on-year to $4.75 billion (Rs 40,351 crore) in FY23, it added.
Moreover, at the combined portfolio level, the cash balance and free flow from operation were pegged at Rs 77,889 crore, higher than debt maturity cover for FY24, FY25 and FY26 at Rs 11,796 crore, Rs 32,373 crore and Rs 16,614 crore, respectively.
Meanwhile, the promoters also prepaid $700 million debt taken for the Ambuja Cements Ltd. acquisition. The prepayment was made along with an interest payment of $203 million.
"The deleveraging program testifies the strong liquidity management and capital access at sponsor level even in volatile market condition, supplementing the solid capital prudency adopted at all portfolio companies," the statement said.
The group's combined net debt-to-Ebitda ratio improved from 3.81 in the previous fiscal to 3.27 in FY23.
The run rate Ebitda surged from Rs 50,706 crore in FY22 to Rs 66,566 crore in FY23. That brought its net debt-to-run rate Ebitda ratio as low as 2.8 times in FY23 from 3.2 times in the previous fiscal, it said. Run rate considers annualised Ebitda from projects that are commissioned during the year.
"The credit update further states that the banking lines of Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit," the statement said.
Other Highlights
Gross assets increased to Rs 4.23 lakh crore, up by Rs 1.06 lakh crore in FY23.
Continued investments in core infra with gross assets of Rs 3.77 lakh crore (89% of the portfolio).
Gross asset to net debt cover ratio improved to 2.26 times in FY23 from 1.98 times in the previous fiscal.
Debt service cover ratio improved to 2.02 times during FY23 from 1.47 times in FY22.
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