Adani touts financial muscle, says can grow without external debt

Adani Group showcases strong financial position to investors despite U.S. bribery indictment, reassuring business continuity and growth plans.

Billionaire Gautam Adani's conglomerate on Monday (November 25, 2024) showcased its cash reserves and profits that are enough to service debt obligations as well as meet growth plans as it reassured investors about business as usual despite a U.S. bribery indictment against the founder.

Gautam Adani indictment: In-depth coverage

The ports-to-energy conglomerate, whose chairman Mr. Adani and two other executives have been indicted in a U.S. court for allegedly bribing Indian officials to secure solar power contracts, in a presentation to investors highlighted cash balances of ₹55,024 crore exceeding long-term debt repayments for the next 28 months.

Equity now accounts for almost two-thirds of its total asset creation, a stark contrast to five years ago. In the past six months, the group invested close to ₹75,227 crore against a total debt increase of only ₹16,882 crore.

A note was also shared with the investors, along with the presentation.

Outlining the group's liquidity position, the note said, "Adani portfolio companies have sufficient liquidity to cover all debt servicing requirements for at least 12 months. As of September 30, 2024, Adani portfolio companies had cash of ₹53,024 crore, which was close to 21% of its total gross debt outstanding."

This amount, it said, was sufficient to cover the next 28 months of debt servicing requirement.