Adani Group repays loans worth $2.65 billion – ET Infra


Gautam Adani

MUMBAI: Infrastructure conglomerate Adani Group on Monday said it has repaid loans to the tune of $2.65 billion, highlighting two separate debt accounts it had paid off in March this year to win back investor trust after the Hindenburg report.

The group’s ratio of net debt to EBITDA, or operating profit, was at 3.27, while net debt to run-rate EBITDA ratio was at 2.81, the conglomerate said in a statement late Monday.

“This is in the lowest quartile for a large infrastructure portfolio,” the Adani Group said.

The prepaid loans include a margin-linked share-backed financing of $2.15 billion, which the company had paid off by March 12 before its March 31 deadline. The group had also prepaid $500 million of debt taken for the acquisition of Ambuja Cement along with $203 million interest in March.

“The deleveraging programme testifies the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudency adopted at all portfolio companies,” the Adani Group said.

The group’s listed companies had a cash balance of ₹40,351 crore, as per a group credit summary published Monday. Gross assets increased to ₹4.23 lakh crore, up by ₹1.06 lakh crore on-year.

The group had an EBITDA of ₹57,219 crore in FY23, up 36.2% year-on-year. Core infrastructure constituted about 83% of the portfolio EBITDA “providing resiliency, stability and high predictability to the cash flow given the majority of projects are largely contracted,” the Adani Group said.

Scrutiny on the Adani Group’s debt profile has increased since a US-based short-seller published a report alleging rampant fraud and stock manipulation at the ports-to-cooking-oil conglomerate. The Adani Group has denied any wrongdoing.

Stock prices of listed Adani Group companies nosedived and yields on its bonds surged after the publication of the report, hurting investor and lender confidence, and making it difficult for the group to borrow fresh capital. The development halted the aggressive pace at which it was expanding.

  • Published On Jun 6, 2023 at 07:28 AM IST

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