Wed Nov 27 11:07:55 UTC 2024: ## Adani Group Reports Strong Financial Health Amidst External Pressures
**New Delhi** – The Adani Group has announced robust first-half (H1) FY25 and trailing-twelve-month (TTM) financial results, showcasing steady growth despite external challenges. The conglomerate reported a 17% year-over-year surge in TTM EBITDA to US$10 billion, while funds from operations (FFO) reached US$7 billion, demonstrating over 30% annual growth for five consecutive years.
Key highlights of the results include a net debt-to-EBITDA ratio of 2.46x, comfortably below the group’s target range, and a strong liquidity position with reserves exceeding debt obligations for at least the next year. The group’s asset base expanded by US$9 billion to US$60 billion in H1 FY25, while gross debt increased by only US$2 billion. Significantly, equity now accounts for 63% of total funding, highlighting a reduced reliance on debt.
Adani’s core infrastructure businesses (energy, transport, and utilities) remain the primary driver of performance, contributing 86.8% of H1 FY25 EBITDA. Emerging businesses in green energy, airports, and roads also showed strong year-over-year EBITDA growth of 70.1%. Individual companies within the group also reported positive growth, with Adani Enterprises seeing increased passenger volumes and solar module sales, and Adani Green Energy expanding its operational capacity.
The group maintained substantial cash reserves of INR 53,024 crore (approximately US$6.4 billion) as of September 2024, providing sufficient liquidity for 28 months of debt servicing. Debt maturities until FY2034 are considered manageable with current FFO levels, even without further growth. This financial stability supports the group’s ambitious plan to invest US$100 billion over the next decade. While the group’s exposure to Indian banking is substantial at US$11 billion, the net exposure is significantly lower after accounting for cash reserves.
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