Adani Group deployed equity worth Rs 2.36 lakh crore in FY23; over half value of total gross assets

25 Aug 2023 , 09:58 AM

Adani Group, a port-to-power conglomerate, announced on August 24 that its numerous strategic initiatives have boosted the company’s total equity deployment to Rs 2.36 lakh crore, or more than half of the group’s total gross assets.

‘Equity deployed by the end of FY23 was Rs 2,35,812 crore, much higher than net debt of Rs 1,87,087 crore,’ the Ahmedabad-based conglomerate noted in a release. According to the company, this increased total equity to 55.77% of total assets, up from 40.16% at the end of FY19.

Adani Group further stated that it had the ‘highest-ever cash balance at portfolio level of Rs 42,115 crore’ at the end of the June 2023 quarter. This was Rs 1,764 crore more than the previous March quarter’s total.

The portfolio’s net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio dipped below 3x for the first time in 10 years, at 2.81x, according to the report.

‘EBITDA and gross assets have expanded at a much faster rate in the last four years (FY19 to FY23), with a CAGR of 18.13% and 21.70%, respectively,’ the company stated.

According to Adani Group, EBITDA climbed by 42% year-on-year in the June 2023 quarter and accounted for more than 40% of total FY23 revenue. In comparison, net debt has expanded at a 14.56% CAGR, ‘resulting in consistently improving leverage ratios,’ according to the report.

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