Adani Group says faces no refinancing risk or liquidity issues; Adani Enterprises turns Q3 profit of ₹820 crore

AEL terms group firms’ recent stock losses as ‘temporary market volatility’; targets growth with moderate leverage and through strategic opportunities to expand

Updated - February 15, 2023 09:56 am IST

Published - February 14, 2023 09:47 pm IST - MUMBAI/AHMEDABAD

A model of new generation anti-radiation missile Rudram-1 is displayed at the exhibition stall of Adani Defence and Aerospace on the second day of the Aero India 2023 at Yelahanka air base in Bengaluru on February 14, 2023.

A model of new generation anti-radiation missile Rudram-1 is displayed at the exhibition stall of Adani Defence and Aerospace on the second day of the Aero India 2023 at Yelahanka air base in Bengaluru on February 14, 2023. | Photo Credit: AP

Adani Group flagship Adani Enterprises Ltd. (AEL) on Tuesday said group companies faced no material refinancing risk, or near-term liquidity issues in the wake of “allegations made by a short seller on the parent and some other entities of the Adani Group” and termed the recent rout in its stock prices as “temporary market volatility”.

“The Management of the Parent has internally assessed the impact of such allegations made and has represented to us that there is no material impact on the financial position and performance of the parent and its subsidiaries for the quarter,” it added.

AEL also reported a third-quarter net profit of ₹820 crore, compared with a net loss of ₹12 crore in the year-earlier period, after total income surged 42% to ₹26,951 crore on account of strong performance by its ‘Adani New Industries, Airports and Integrated Resource Management businesses’, the company said in a filing.

“The success of the Group is due to its strong governance, strict regulatory compliance, sustained performance, and solid financials that balance growth and deleveraging,” AEL said In a separate filing, detailing the financial performance and credit assessment of the group’s listed entities.

It said that the group’s businesses operate on long-term annuity contracts generating assured and consistent cashflows with no market risk.

“Our portfolio assets of more than ₹3,70,000 crore yield a run-rate EBITDA of over ₹60,000 crore, which places Adani among the most profitable large-scale infrastructure and real asset platforms in the world,” it asserted. “We have financed these assets through a conservative mix of debt and equity consistent with global standards of infrastructure finance. Our total net debt is at around ₹1,96,000 crore, which translates to a net debt to run-rate EBITDA ratio of 3.21x.” 

AEL said since 2013, group EBITDA had grown consistently at a CAGR of 22%, while debt had grown at a CAGR of only 11%. 

“Over the past three decades, as well as quarter after quarter and year after year, Adani Enterprises has not only validated its standing as India’s most successful infrastructure incubator but has also demonstrated a track record of building core infrastructure business,” Chairman Gautam Adani said in the statement.

“Our fundamental strength lies in mega-scale infrastructure project execution capabilities, organisational development and exceptional O&M management skills comparable to the best in the world,” he said. 

“As a classical incubator with a vision of long-term value creation, AEL will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow,” Mr. Adani added. 

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