How Adani Group listed companies' net debt has ballooned in last 5 years
Designed by: Mohsin Shaikh
Produced by: Harshita
It has been nearly five months since Hindenburg Research released its scathing report on the Adani Group. The Gautam Adani-led conglomerate's listed companies are still recovering from the rout caused by the report from the US-based short-seller
5 months since Hindenburg report on Adani Group
Foreign brokerage Jefferies has come out with a profiling of the $105 billion conglomerate Adani Group, whose business focus spans across utility, logistics, infrastructure, and other adjacencies
Jefferies' detailed report on Adani Group
Adani Group stocks have remained in focus ever since Hindenburg Research alleged stock manipulation, money laundering and accounting frauds by the group companies. Company's debt has been flagged as well. Here's a look at how Adani Group companies' net debt has ballooned over the last five years
Hindenburg report on Adani Group
According to Jefferies, Adani Enterprises' net debt stood at Rs 149,881 million in FY18. It has more than doubled to Rs 329,459 million by FY23. Adani Port's net debt has gone up from Rs 179,448 million to Rs 351,750 million during this period
Adani Enterprises, Adani Port net debt surge
The net debt of Adani Transmission and Adani Green Energy has ballooned from Rs 97,629 million and Rs 92,222 million in FY18 to Rs 288,058 million and Rs 512,210 million in FY23 respectively
Adani Green Energy debt surges over 5x
While Adani Power saw its net debt decline in the last five years. Adani Total Gas saw its net debt jump from Rs 3,306 million in FY18 to more than Rs 10,000 million in FY23
Adani Total Gas debt surge
Including the seven listed businesses and cement businesses, total net debt for the Adani entities stood at $25 billion or Rs 21 lakh crore, as of FY23 end. Some nascent businesses, being in early stage, may not be reflecting appropriately in Ebitda as of FY23, thus optically inflating net debt/trailing Ebitda, Jefferies said
Adani Group companies' debt balloons
Adani Group has been aiming to reduce promoter leverage and address the concerns of investors and creditors. It has paid back at least $3 billion in the March quarter, lowering promoter-group pledges and settling bonds with three domestic mutual funds
Adani Group reducing debt
Jefferies noted that Adani Group's revenue grew 23% compounded annually over FY18-23; Ebitda and PAT during the same period grew 20% and 40% annually, it said. Leverage stood at 4.2 times net debt/Ebitda (ex OI) on a trailing 12-month basis, as of FY23-end. Ebitda calculation excludes other income, Jefferies said
Adani Group revenue jump
Meanwhile, an expert committee constituted by India's Supreme Court to investigate the Adani Group said it was not possible to conclude if there has been regulatory failure regarding price manipulations