Adani Group said it has enough cash to cover more than 30 months of debt payments, easing concerns about its liquidity risk as the Indian conglomerate considers new funding for its main unit.
According to a Monday news announcement, Gautam Adani’s business reported that its cash balance amounted for 24.8% of gross debt at the end of the first quarter of the fiscal year that began in April, up from 17.7% a year earlier.
The port-to-power conglomerate’s Ebitda, or earnings before interest, tax, depreciation, and amortisation, increased 33% to approximately ₹225.70 billion ($2.7 billion) in the quarter ending June 30.
The improved financial performance comes as the conglomerate’s flagship firm, Adani Enterprises Ltd., is exploring financing between ₹100 billion and ₹120 billion through a share sale, following the recent success of its energy transmission unit in raising $1 billion.
The completion of such financing and signs of improved cash flows would help Adani Group regain investor confidence after US short-seller Hindenburg Research accused it of widespread fraud and corporate malfeasance in early 2023, resulting in a rout that erased more than $150 billion from its market value. Adani has frequently refuted these allegations.
Adani Group’s gross debt was ₹2.41 trillion at the end of the quarter.
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