Billionaire Gautam Adani’s conglomerate, the Adani Group, has asserted its financial strength, claiming it can sustain growth without relying on external debt. In a presentation to investors on November 25, 2024, the group highlighted its impressive cash reserves and robust profits, which it states are sufficient to cover all debt obligations for at least the next 28 months. The group’s long-term debt from domestic banks totals ₹94,400 crore, while its cash balance stands at ₹53,024 crore.
The presentation revealed that equity now constitutes nearly two-thirds of the group’s total asset creation, a significant shift from five years ago. Over the past six months, the Adani Group has invested approximately ₹75,227 crore, with a modest debt increase of only ₹16,882 crore. This strategic investment approach has allowed the conglomerate to bolster its liquidity position significantly.
The group reported Fund Flows from Operations (FFO) of ₹58,908 crore over the past year, reflecting a growth rate exceeding 30% over five years. Even without any further growth, the Adani Group estimates it can invest ₹5.9 lakh crore solely from internal cash accruals over the next decade. The presentation also indicated a low debt gearing ratio of 2.46 times, suggesting ample capacity for additional borrowing if needed.
In terms of earnings performance, EBITDA rose by 17% to ₹83,440 crore in the last twelve months. The average cost of borrowing has decreased to 8.2%, attributed to improved ratings across its companies. Overall, the Adani Group’s financial metrics demonstrate a strong foundation for future growth amid ongoing challenges.
