‘Adani Group not overleveraged, loans from PSBs halved’

The group had a gross debt of ₹1.88 lakh crore in March 2022 and net debt of ₹1.61 lakh crore after considering the cash balance

Richest Indian Gautam Adani's conglomerate has cited an improved net debt to operating profit ratio and more than halving of loans from public sector banks (PSBs) to allay concerns about it being overleveraged.

In a 15-page note in response to CreditSights report calling the group overleveraged, it said companies in the group have consistently de-leveraged, with the net debt to Ebitda ratio declining to 3.2 times from 7.6 times in the last nine years.

"The businesses operate on a simple yet robust and repeatable business model focused on development and origination, operations and management and capital management plan," the note, reviewed by PTI, said.

The group had a gross debt of ₹1.88 lakh crore in March 2022 and net debt of ₹1.61 lakh crore after considering the cash balance.

While loans from public sector banks in 2015-16 accounted for 55% of all debt of the group firms, in 2021-22, borrowing from PSBs made up for 21% of all debt, it said.

In FY2016, private banks accounted for 31% of loans, which has now shrunk to 11%. Money raised through bonds has jumped from 14% of all loans to account for 50% now.