Adani Portfolio’s Credit Profile Logs Peak EBITDA Growth At 47% In H1FY24

The group stated that the strong cashflows have facilitated unconstrained investments which is reflected in the growth in asset base, which stands at Rs 4.48 lakh crore.

Notably, 53 per cent of the portfolio EBITDA is AA+ and another 15 per cent is rated A+

Source : Getty

Adani Portfolio reports peak half-yearly EBITDA growth of 47 per cent in the first six months of the current fiscal year. The infrastructure portfolio, considered the fastest growing and highest-rated in the country, released its credit performance for the first half of FY24 (April to September) and revealed that it reduced net debt by 3.6 per cent and increased its cash reserved by 13.7 per cent during the period on a year-on-year (YoY) basis.

The entity logged robust growth in the portfolio EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization), at a much faster rate than debt, which resulted in consistently improving leverage ratios. Notably, more than 80 per cent of the EBITDA was contractual and 68 per cent of EBITDA is A+ rated, therefore, providing high stability and multi-decadal cashflow visibility. 

The group stated that the strong cashflows have facilitated unconstrained investments which is reflected in the growth in asset base, which stands at Rs 4.48 lakh crore. Equity deployment stands at 59.8 per cent of the overall asset base, while debt investment remained at 40.2 per cent, it said.

The credit performance report further said that despite the current deleveraging and higher cash balances, the companies in the portfolio have maintained a commitment towards investment, which has been reflected by the growth in the asset base. As such, the total gross assets of the portfolio climbed 6 per cent or Rs 25,240 crore during the reporting period, owing to the increase in equity investments supported by strong cashflows from the businesses. 

The portfolio companies saw a record high cash balance across at Rs 45,895 crore, which was higher by 14 per cent against the period six months earlier. This balance exceeded the long-term debt repayment for the next 18 months. 

The entity further noted that owing to a stable credit profile, the ratings of all the firms, more than 100, in the portfolio remained intact. Notably, 53 per cent of the portfolio EBITDA is AA+ and another 15 per cent is rated A+, the group said.