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Adani group eyes 20 per cent year-on-year growth in pre-tax profits to reach Rs 90,000 crore EBITDA in 3 years

Earlier this month, group repaid loans aggregating $2.65 billion to complete prepayment programme to cut overall leverage

PTI New Delhi Published 26.06.23, 04:27 AM
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The embattled Adani group is eyeing a 20 per cent year-on-year growth in pre-tax profits to reach Rs 90,000 crore EBITDA in 2-3 years on the back of robust growth in businesses ranging from airports to energy, according to a company note.

Earlier this month, the group repaid loans aggregating $2.65 billion to complete a prepayment programme to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller.

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The ports-to-energy conglomerate is now looking at robust growth in sectors such as airports, cement, renewables, solar panels, transportation and logistics, and power and transmission, it said adding several of Adani’s new infrastructure investments will also begin to fructify and generate cash in the coming years.

Adani is expected to see an increase of more than 20 per cent in EBITDA on a consolidated basis in the coming years as it drives robust and sustainable growth across its business portfolio. Its target EBITDA of over Rs 90,000 crore is expected by FY23, the note said.

In recent years, the group has made substantial investments in ports and completed significant projects across renewables, transportation and ports. Businesses such as airports and renewables are also exhibiting improved cash flows. Its solid asset base, built over three decades, supports resilient critical infrastructure and ensures high asset performance throughout their life cycles.

The group’s listed portfolio EBITDA increased 36 per cent yoy to Rs 57,219 crore in FY23 (April 2022 to March 2023 fiscal). Core infrastructure businesses, which constitute 82.8 per cent of the portfolio including energy, transport, logistics, and flagship Adani Enterprise Ltd’s infrastructure ventures, registered a robust 23 per cent yoy growth in EBITDA at Rs 47,386 crore.

AEL’s existing businesses also delivered a strong performance with a 59 per cent yoy growth to Rs 5,466 crore. AEL’s existing businesses comprise 10 per cent of its portfolio.

With about 83 per cent of its EBITDA being generated from core infrastructure businesses, the Adani Group’s portfolio operates in utility and infrastructure sectors, providing assured and consistent cash flows. The group has set its sights on growth across diverse sectors such as airports, cement, renewables, solar panels, ports, power, and transmission.

Last year marked a period of significant progress for Adani as its portfolio’s robust growth of 36 per cent was simultaneously complemented by an effective deleveraging strategy as can be seen from its improved net debt to EBITDA ratio.

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