Gautam Adani's Group Reports Increase in Cash Reserves

The Adani Group of India has reported an improvement in cash balances and stated that it does not foresee any refinancing risks in the immediate future. This comes as the conglomerate continues to strengthen its financial position following a significant short seller attack last year.

During the third quarter ended December 31, the group's EBITDA (earnings before interest, tax, depreciation, and amortization) surged over 60% to reach US$2.3 billion, primarily driven by the transport, infrastructure, and energy sectors.The conglomerate, which spans from ports to power, affirmed that it faces no significant refinancing risks and has adequately addressed near-term liquidity requirements. It also noted that all near-term debt maturities have been fully financed.

The latest numbers, posted in a statement on Thursday (Feb 29), cement the trajectory reported in the preceding quarter. Led by billionaire Gautam Adani, the group had seen its net debt drop by 3.5 per cent to US$21.72 billion in the six months through September, alongside a fresh equity raise of close to US$5 billion. 

Cash balances have improved. The pile can fund long term debt repayments for more than 15 months with portfolio level cash balances at US$5.36 billion as on Dec 31, it said.

The conglomerate has often criticised in recent years for its debt-fuelled growth frenzy. That debt raising spree ground to a halt in January 2023 when short-seller Hindenburg Research published a scathing report alleging wide-ranging corporate fraud that forced the conglomerate into months of damage control.