Adani Group’s FY24 net jumps 55%; mulls $90-billion capex

Adani group's profit surged 55% in FY24, focusing on debt reduction and core business consolidation, eyeing $90B capex.

Adani group saw a 55% profit surge in the fiscal year ended March 2024 as the apples-to-airport conglomerate is back on an expansion spree and eyeing a $90 billion capex over the next decade.

Emerging from a damning report of a U.S. short seller, which hit market value of its listed companies, Adani group in 2023-24 (April 2023 to March 2024) fiscal focused on containing debt, reducing founder share pledge and consolidating business in core competencies.

This helped net profit surge to ₹30,767 crore for the group’s listed companies in the fiscal from ₹19,833 crore a year earlier, according to exchange data and analysts. The five-year CAGR (compounded annual growth rate) for profit growth was 54%.

EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 40% to ₹66,244 crore despite a 6% revenue fall.

“Total group EBITDA grew 40% year-on-year in FY24 (5-year CAGR of over 27%), group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group companies and group Mcap rebounded,” as per a Jefferies note. “The group is back on an expansion spree and eyeing $90 billion capex over next decade.” Group leverage was at a multi-year low, the U.S.-based brokerage said.

“Net debt at the group level (eight companies plus debt related to cement-business acquisition) was remained stable at ₹2.2 lakh crore in FY24 vs ₹2.3 lakh crore. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs 5x year-on-year,” it said.

Adani Ports and Adani Power saw a drop in net debt in FY24. Increase in leverage for Adani Enterprises and Adani Green was on the back of new capex projects undertaken by companies.