CHENNAI: Adani Group on Wednesday said the company has lowered its net debt by 3.6% and raised cash reserves by 13.7% in the past six months. Its net debt to EBITDA ratio, which indicates how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant, stood at 2.5x in the first half (H1) of FY24 against 3.3x at the end of FY23.
As per the half-yearly credit performance shared by the group on Wednesday, its net debt to RR (run-rate) EBITDA (TTM) at 2.5x in H1FY24 compared to 2.8x in FY23 and net debt-to-equity stood at 0.67x as against 0.8x in the same period FY23. The group’s debt coverage ratio improved to 2.12x against 2.02x and gross assets to net debt rose to 2.5x against 2.3x.
The group said it has lowered the net debt while delivering EBITDA growth of 47%. The group’s equity deployment is at 59.8% of the total asset base. The cash balance across portfolio companies stood at Rs 45,895 crore, a rise of 14% compared to six months ago and exceeds long-term debt repayment for the next 18 months, the report said. Total gross assets increased by Rs 25,240 crore (6%) during the period reaching Rs 4.48 lakh crore ($54 billion).