Adani Enterprises, Adani Power, Adani Green Energy shares: Adani stocks in focus as group cash balance hits record in Q1

Adani Enterprises Ltd, Adani Power Ltd, Adani Green Energy Ltd and Adani Energy Solutions and other Adani group stocks will be in focus on Friday morning the Gautam Adani-led group said it improved its liquidity position through strategic initiatives, increasing the cash balance to Rs 42,115 crore at the end of June quarter. This was the highest-ever cash balance, Rs 1,764 crore higher than at the end of the preceding March quarter, the Adani group said in a statement.

The portfolio companies diligently focused on bolstering their financial standing, ensuring a robust foundation for their ambitious projects, the release added. Adani Group said its portfolio’s net debt to Ebitda (run-rate) fell below 3 times — at 2.81 times for the first time in the last ten years.

Adani Group noted that the promoter level entity generated Rs 30,900 crore (does not include recent stake sale in Adani Power to GQG Partners) through secondary market transactions since March 2023. It said its conservative planning has provided for a robust maturity cover.

"Maturity profile of debt for all the companies exceeds cover period in all cases, ensuring refinancing protection and eliminating systemic risks. Free funds flow plus cash for FY23 was 2.72 times against average debt maturity cover of 6.55 years, thus eliminating refinance risks. Free funds flow is Ebitda less finance cost paid less tax," it said.

Besides, the group said more than half of its portfolio Ebitda is from the businesses that enjoy ratings equal to sovereign rating of India.

"Such high ratings have allowed continues capital market access," it said.

The group said significant deployment of equity resulted in total equity increasing to 55.77 per cent of the total assets compared with 40.16 per cent at the end of FY19. 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% of the entire FY23. As against these, net debt has grown at only 14.56 per cent CAGR, resulting in consistently improving leverages ratios," the group said.

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