The Adani Group is on track to surpass a group Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Rs 1 trillion in the ongoing fiscal year 2025, as it prepares for a $2 billion share sale by its flagship entity, Adani Enterprises, next month, according to a source close to the matter.
For the fiscal year ending March 2024, the group reported a combined Ebitda of Rs 82,917 crore, as per a presentation made to the bankers. This significant increase is anticipated due to the growth in its core infrastructure sectors, bolstered by recent acquisitions of Penna Cement and Sanghi Cement. The group’s cement, power, and green energy businesses are expected to contribute 46 per cent to this year’s Ebitda.
Across its 10 listed companies, the Adani Group is investing nearly $15 billion in the current financial year, raising equity funds to support these initiatives. Over the next decade, the group plans to invest an additional $100 billion in various infrastructure projects, with a detailed funding strategy already in place, according to senior company officials.
To attract investors, the group is conducting roadshows globally. Last week, the promoter family sold a minority stake in Ambuja Cements as part of their portfolio rebalancing efforts and may consider selling an additional 3 per cent in Adani Power.
In terms of debt exposure, data reveals that Indian lenders have increased their exposure to the Adani Group over the past year. Prominent public sector banks, including State Bank of India, REC, PFC, Bank of Baroda, Union Bank of India, and Canara Bank, as well as private banks like Axis Bank, ICICI Bank, and HDFC Bank, have extended funds for various projects. The group’s net debt decreased to Rs 1.81 trillion in the fiscal year ending March 2024, down from Rs 1.86 trillion in fiscal 2023.
Among its companies, Adani Power is actively acquiring major electricity generation projects. It has emerged as the highest bidder for KSK Mahanadi, a bankrupt power firm, with an offer of Rs 27,000 crore. Additionally, it is in the process of acquiring Lanco Amarkantak, a 600 MW power project, for Rs 4,100 crore, and is negotiating the purchase of Vidarbha Power, a bankrupt Maharashtra-based power project, and Coastal Energen of 1,200 MW.
Shares of Adani Enterprises closed at Rs 3,068 a share on Monday, up by 7.7 per cent since January this year. The benchmark BSE Sensex is up 26 per cent this year since January.
First Published: Aug 26 2024 | 7:39 PM IST