Adani Group Ensures Sufficient Liquidity for Over 30 Months of Debt Repayment

Billionaire Gautam Adani's conglomerate, spanning ports to energy, announced on Monday that it possesses sufficient cash reserves to cover over 30 months of debt payments. The group stated that its businesses are performing robustly. As of the end of June, cash balances accounted for 24.8% of gross debt, totalling Rs 2.41 lakh crore, an increase from 17.7% a year earlier.

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Adani Group reported a 33% rise in pre-tax profit for the June quarter, driven by strong performance in core infrastructure and emerging sectors like solar and wind manufacturing, as well as airports. EBITDA for April-June increased by 32.87% year-on-year to Rs 22,570 crore. This resulted in a trailing twelve-month (TTM) EBITDA of Rs 79,180 crore, marking a 45.13% increase over the previous year's corresponding TTM.

Adani Enterprises' Performance

Adani Enterprises Ltd., the group's business incubator, saw its EBITDA rise by 46% to Rs 4,487 crore in April-June. Net profit more than doubled to Rs 1,776 crore during the same period. The company's emerging infrastructure businesses, including solar and wind manufacturing and airports, led overall growth with segment EBITDA rising by 70% to Rs 2,991 crore.

The renewable energy arm, Adani Green Energy, posted a 30% rise in EBITDA to Rs 2,866 crore and nearly doubled its net profit to Rs 629 crore as operational capacity expanded by almost a third. Adani Power's profit surged by 54% to Rs 3,490 crore due to increased sales.

Infrastructure and Emerging Businesses

The core infrastructure platform includes flagship Adani Enterprises Ltd.'s infrastructure businesses, utility Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas, and transport Adani Ports & SEZ businesses. This platform saw a remarkable 41.6% year-on-year growth in Q1.

Adani Ports & SEZ experienced a profit increase of 47%, reaching Rs 3,107 crore. Meanwhile, city gas distribution firm Adani Total Gas Ltd reported the smallest profit growth at 14.4%, amounting to Rs 172 crore.

Expansion in Renewable Energy and Airports

Adani Green Energy commenced construction on a 500 MW hydro pump storage project while increasing its total electricity generation capacity at its mega renewable park in Khavda, Gujarat to 11.2 gigawatts (GW). The solar module manufacturing business saw module sales rise by 125% year-on-year during the quarter.

The airport business continues to grow with rising passenger movement and expanding consumer offerings. During the quarter, eight new routes, six new airlines, and thirteen new flights were added across seven operational airports. Annual passenger movement across these airports surpassed 90 million for the first time.

Road Construction and Cement Business

The group's road business achieved its highest-ever construction milestone with 730 lane-km built during the quarter. In the cement sector, promoters infused Rs 15,000 crore into Ambuja Cements in two tranches during March and April. This fully subscribed the warrant program and brought the total infusion since September 2022's acquisition to Rs 20,000 crore.

Additionally, the group acquired Penna Cement, increasing its total capacity to 89 million tonnes per annum. Headquartered in Ahmedabad, Adani Group is India's largest and fastest-growing portfolio of diversified businesses with interests across energy and utilities, transport and logistics including seaports, airports, shipping and railways, natural resources, and the consumer sector.

The group's leverage net debt to EBITDA ratio stood at a multi-year low of 2.2x. The strong quarterly performance was attributed to Adani Enterprises' emerging businesses such as solar and wind manufacturing—India's largest integrated green hydrogen chain—and its airports and roads sectors.

This expansive yet resilient growth is credited to Adani's strategic focus on its infrastructure platform which offers high stability and predictability.