Adani Group set for zero refinance or systemic risk by 2025

Adani Group’s strategy is to concentrate enough cash, both from the cash generated from regular operations in the infrastructure business and from reserves, so that it can take care of any debts that are due in the future.

The main goal is to gain this financial state by the year 2025. The key motive for this approach is to make sure that there is no need to borrow any debt and to avoid any possible threat coming from the market or economy or because of a spilling consequence of global events.

The current cash in the bank and free cash flow is around Rs 77,889 crore for the fiscal year 2022–2023. The current gross debt is around Rs 2.27 lakh counter asset base of Rs 4.22 lakh crore. Taking about the leverage, the net debt to EBITDA ratio has decreased from 3.8x in 2021-22 to 3.3x in 2022-23.

The group is recalibrating its growth strategy, with a revenue of Rs 2.62 lakh crore, by reducing the velocity of acquisitions and reducing debt. There are also plans to cast aside non-core assets. This month, the group has also sold the financial services businesses.

In recent times, the Adani Group sold shares in four of its companies—Adani Transmission (ATL), Adani Enterprises (AEL), Adani Green Energy (AGEL), and Adani Ports & SEZ (APSEZ), gathering $1.87 billion from the international private equity firm, GQG Partners.