Adani Group ‘better’ leveraged even as debt more than doubles in five years

Net debt is arrived at after deducting the cash balance of the company from gross debt.
Adani Group chairman Gautam Adani.
Adani Group chairman Gautam Adani.File Photo | AFP

NEW DELHI: Total net debt of the Adani Group has almost doubled in the past five years from R94,770 crore at the end of FY19 to R 181,604 crore in FY24, growing at a compounded annual growth rate of 14%. Gross debt of the group more than doubled during the same period from R1.06 lakh crore to R2.41 lakh crore, the company said in a credit profile note issued on Sunday.

Net debt is arrived at after deducting the cash balance of the company from gross debt. The group’s cash balance has increased more than five times to R59,700 crore at the end of FY24. The group owes 36% of total gross debt to domestic banks. The average maturity of loans taken from domestic banks is 9 years. Global banks account for 26%, or R61,900 crore, outstanding loans of the group. The average maturity period for such loans is 4.34 years. Rest of the debt was raised from global (29%) and domestic (5%) capital markets.

Adani Green Energy has the highest gross long-term loans among the listed Adani group companies with R53,952 crore debt in its books, followed by Adani Port and SEZ (R45,800 crore).

Despite rising debt in absolute numbers, the group is much better placed in terms of leverage ratios. The company’s net debt/EBIDTA ratio has improved from 3.91x in FY19 to 2.19x in FY24. In the previous year, the net debt/EBIDTA ratio was 3.27x. The company’s total asset/net debt ratio also improved from 1.67x to 2.63x during the period.

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