Adani to raise in the competitive market once again
Adani to raise in the competitive market once again

Adani group is eyeing a 20 percent year-on-year growth in pre-tax profits to reach Rs 90,000 crore EBITDA in 2-3 years on the back of robust growth in businesses ranging from airports to energy, according to notes in an investor presentation. Earlier this month, the group repaid loans aggregating $2.65 billion to complete a prepayment program to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller.

Adani is expected to see an increase of more than 20 percent in EBITDA on a consolidated basis in the coming years as it drives robust and sustainable growth across its business portfolio. Its target EBITDA of over Rs 90,000 crore is expected by FY23, the note said. In recent years, the group has made substantial investments in ports and completed significant projects across renewables, transportation, and ports.

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Businesses such as airports and renewables are also exhibiting improved cash flows. Its solid asset base, built over three decades, supports resilient critical infrastructure and ensures high asset performance throughout its life cycles. EBITDA of the Group's listed portfolio increased by 36% year-on-year to Rs 57,219 million in FY2023 (FY2022 to FY2023). The core infrastructure business, which accounts for 82.8% of the portfolio, including Energy, Transportation, Logistics, and Adani Enterprises' flagship infrastructure business, recorded strong growth in EBITDA of Rs 47,386 million, up 23% year-on-year. AEL's existing business also delivered a strong performance, rising 59% year-on-year to Rs 546.6 billion. AEL's existing business represents 10% of the portfolio.

With approximately 83 percent of EBITDA generated from core infrastructure businesses, Adani Group's portfolio operates in the utilities and infrastructure sector, providing secure and consistent cash flow. The group aims for growth in various sectors such as airports, cement, renewable energy, solar panels, ports, energy, and power transmission. The past year has been a period of significant progress for Adani, with strong portfolio growth of 36% complemented by an effective deleveraging strategy as reflected in an improved net debt to EBITDA ratio.

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Strong portfolio total net debt-to-EBITDA ratio improved from 3.8x in FY2022 to 3.27x in FY2023 and strong net debt-to-EBITDA ratio improved from 3.2x in FY23 to 2.8x in FY22 The company said in a press release that it underscores the group's strong financial discipline amid growth. Said. Adani Group's management has confirmed that there are no material debt maturities in the near term, indicating no material refinancing risk or short-term liquidity needs.

The net worth of total assets is Rs 391 crore. Over time, the Group has diversified its long-term debt portfolio and expanded its funding sources while reducing its exposure to banks. Current liabilities are split between fixed income (39%), global international banks (29%), PSU and private banks, and NBFC (32%). The Adani Group has fully repaid a $2.15 billion loan raised against the shares of the listed companies of the conglomerate, with an additional $700 million loan to be used for the Ambuja acquisition of cement.

The Adani Group denies all of Hindenburg's allegations and plans a conspiratorial counterattack strategy. The group has reframed its ambitions and advanced some loans to reassure investors. Cash balance and FFO (total Rs.7,788.9bn) are well above Rs.1,179.6bn, Rs.3,237.3bn, and debt coverage ratio of Rs.1,661.4bn in FY2024, 25, and 26 respectively at the combined portfolio level. 

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Adani Group has raised up and has made a great comeback by clearing all the allegations and debts on them since the time and has made great profits expecting to grow massively in the coming 2 to 3 years.

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