The Adani Group on Monday, June 5, said it has repaid loans totalling $2.65 billion that were taken by pledging shares in the conglomerate's listed firms and another $700 million in loans taken for the acquisition of Ambuja Cement.

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According to the credit note, the group has made a full prepayment of margin-linked share-backed financing totalling $2.15 billion. The promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. The prepayment was done along with an interest payment of $203 million.

The Adani Group said the credit update states that the promoters completed the sale of shares in four listed group entities to GQG Partners, a leading global investment firm, for $1.87 billion (Rs 15,446 crore).

"The deleveraging programme testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio companies," the group said.

The credit update further highlighted major improvements in key financial metrics — the portfolio's combined net debt to EBITDA ratio has decreased from 3.81 in FY22 to 3.27 in FY23, run rate EBITDA surged from Rs 50,706 crore in FY22 to Rs 66,566 crore in FY23.

The credit update added that the banking lines of the Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit. Moreover, both domestic and international rating agencies have reaffirmed their ratings in all the group companies.

US short-seller Hindenburg Research in January released a damning report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about $145 billion in the conglomerate's market value at its lowest point.

The Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy. The group has recast its ambitions as well as prepaid some loans to assuage investors.

The credit update further highlights major improvements in key financial metrics - the portfolio's combined Net Debt to EBITDA ratio has decreased from 3.81 in FY22 to 3.27 in FY23, run rate EBITDA surged from Rs 50,706 crore in FY22 to Rs 66,566 crore in FY23.

The credit update further states that the banking lines of Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit. Moreover, rating agencies both domestic and international rating agencies have reaffirmed their ratings in all the group companies.

Debt Service Cover Ratio (DSCR) has improved to 2.02x during FY23 from 1.47x during FY22. Gross Assets increased to Rs 4.23 lakh crore, up by Rs 1.06 lakh crore. Gross Asset / Net Debt cover has improved to 2.26x in FY23 from 1.98x in FY22.

Continued investments in core infra with gross assets of Rs 3.77 lakh crore (89 percent of the portfolio) provide long-term multi-decadal visibility of cash flow, it said, adding cash balance was higher by 41.5 percent at Rs 40,351 crore against Rs 28,519 crore. Free Flow from operations – FFO - (EBITDA less finance cost less tax paid) was Rs 37,538 crore.

Cash balance and FFO (together at Rs 77,889 crore) are much higher than debt maturity cover for FY24, FY25 and FY26 of Rs 11,796 crore, Rs 32,373 crore and Rs 16,614 crore, respectively, at the combined portfolio level.

Shares of Adani Enterprises ended at Rs 2,433.95, down by Rs 11.00, or 0.45 percent on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Jun 5, 2023 8:04 PM IST