The Adani Group, through a series of strategic initiatives, has increased its liquidity position at the portfolio level, to finish with a cash balance of Rs 42,115 crore at the end of the June quarter.

“The portfolio companies diligently focused on bolstering their financial standing, and ensuring a robust foundation for their ambitious projects,” Adani group said in a press release.

Deployment of equity has raised total equity to 55.77 per cent of the total assets, as compared to 40.16 per cent at the end of FY19.

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“Equity deployed by the end of FY23 was Rs 2,35,812 crore, much higher than net debt of Rs 1,87,087 crore. EBITDA and gross assets have grown at a much faster rate in the last four years (FY19 to FY23), at a CAGR of 18.13 per cent and 21.7 per cent respectively. EBITDA in the June FY24 quarter increased by 42 per cent year-on-year, and was more than 40 per cent of the entire FY23. As against these, net debt has grown at only 14.56 per cent CAGR, resulting in consistently improving leverages ratios,” it added

Net debt to run-rate EBITDA for FY23 fell to 2.8x, as compared to 3.2x a year ago. Gross assets to net debt was 2.3x at the end of FY23, and net debt to equity at 0.8x at the end of FY23.

The debt coverage ratio improved to 2.02x for FY23, as compared to 1.47x for FY22. “More than half of the portfolio EBITDA is from businesses that enjoy ratings equal to the sovereign rating of India. Such high ratings have allowed continued capital market access,” the group said

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The core infrastructure and utility platform accounted for 83 per cent of total EBITDA in FY23 and 86 per cent in the June FY24 quarter. Contractual businesses accounted for 82 per cent of portfolio EBITDA in FY23.

“Well-diversified finance sourcing from global as well as domestic banks, capital markets and others has eliminated concentration risk. Conservative planning has provided for robust maturity cover. The maturity profile of debt for all the companies exceeds the cover period in all cases, ensuring refinancing protection and eliminating systemic risks,” the company said.

Free funds flow plus cash for FY23 was 2.72x, against the average debt maturity cover of 6.55 years, thus, eliminating refinance risks. Free funds flow is EBITDA less finance cost paid, less tax.

Through a 10-year equity programme with long-only global investors formulated in 2016, the Adani portfolio has attracted over $9.5 billion (does not include the recent stake sale in Adani Power to GQG Partners) since 2019. This programme has supported strategic priorities, including pre-payment of margin-linked share-backed financing. The promoter level entity has generated Rs 30,900 crore (does not include recent stake sale in Adani Power to GQG Partners) through secondary market transactions since March 2023.