Adani Group's Equity Takes Major Leap To Boost Its Financial Muscle

Adani Group, in a recent statement, highlighted a significant financial milestone: their equity deployment across various businesses now surpasses half of their total assets, a first for the conglomerate. This surge, they note, is a result of strategic moves aimed at enhancing their liquidity stance.

What Happened? By the close of FY23, the group’s total equity had swelled to an impressive 55.77% of their assets, a leap from the 40.16% recorded at FY19’s end. This equity stands at a robust ₹2.36 lakh crore, overshadowing their net debt of ₹1.87 lakh crore.

But that’s not all. Adani’s liquidity position has seen a record uptick, culminating in a cash balance of ₹42,115 crore by June’s end. This financial fortification, the group emphasizes, is crucial for the ambitious ventures they have on the horizon.

Diving deeper into the numbers, the group’s net debt to EBITDA ratio has dipped below 3x for the first time in a decade, settling at 2.81 times. Furthermore, their core infra and utility platform now contributes over 80% to their Q1 FY24 portfolio EBITDA, promising stable, long-term earnings.

In a nutshell, Adani Group’s financial health appears robust, with equity growth outpacing debt and a record liquidity position, setting them up for a promising future.

Here’s a low-down of how Adani Group’s listed entities performed at market close on Thursday:

Adani Enterprises ended the day 0.47% lower at ₹2,542.20
Adani Power ended the day 2.66% higher at ₹331.45
ACC ended the day 1.33% higher at ₹1,991.40
Ambuja Cements ended the day 0.95% lower at ₹449
Adani Total Gas closed the day 1.44% higher at ₹663.60
Adani Energy Solutions closed the day 5.7% lower at ₹905.45
Adani Green Energy ended the day 1.6% higher at ₹987.00
Adani Ports and Special Economic Zone closed ₹0.28% lower at ₹823.40
New Delhi Television closed 0.18% higher at ₹223.85

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