Adani Group companies reported a record 45% increase in pre-tax profit (EBITDA), reaching Rs 82,917 crore (about USD 10 billion) for FY24. This impressive growth marks a significant comeback for the conglomerate, which faced a challenging year due to a damaging report by a US short seller that affected the market value of its listed companies. In response, the Adani Group focused on reducing debt, cutting down founder share pledges, and strengthening its core businesses. Over the past five years, the group’s profit growth has seen a compound annual growth rate (CAGR) of 54%.
Most of the EBITDA (84%) comes from core infrastructure businesses, which generate highly predictable cash flows.
The group’s cash profit, or funds flow from operations (FFO), reached Rs 56,828 crore, a 51% increase from the previous year. This growth was achieved through a disciplined investment strategy that ensured high conversion rates, according to a statement from the Adani Group.
Strong Asset Base and Cash Flow
With a strong asset base built over three decades, the group’s critical infrastructure assets now total Rs 4,78,137 crore (USD 57 billion), serving 350 million users.
The statement highlighted the strength and stability of the Adani portfolio, showcasing its ability to deliver consistent growth despite external challenges.
Efficient Capital Deployment
From FY19 to FY24, the group’s gross assets grew at a 25% CAGR, while EBITDA increased at 27% CAGR. In contrast, net debt rose only 14%, demonstrating efficient capital deployment.
In FY24, the Adani portfolio achieved record EBITDA growth of 45%, driven by surging cash flows and improved credit profiles. This puts the companies in a strong position to accelerate growth investments. The user base across various sectors, including airports, electricity distribution, smart metering, gas distribution, and digital platforms, has expanded to 350 million.
The statement also noted that rising cash flows from growing profits have significantly reduced net leverage. The group’s net debt to EBITDA ratio is now 2.2x, down from 3.3x, indicating a disciplined growth profile with stable and resilient performance.
The predictable cash flows provide Adani portfolio companies with a strategic advantage, allowing them to optimize leveraging and operate with lower risks compared to industry benchmarks. This leads to faster asset additions, higher growth, and maximized shareholder returns. The balance sheet, with a net debt to EBITDA ratio of 2.2x, has the capacity to support even higher growth.
Future Outlook
Total gross assets increased by Rs 65,901 crore (USD 8 billion) in FY24, now standing at Rs 4,78,220 crore (USD 57.4 billion).
Significant asset additions came from Adani Enterprises, which houses green hydrogen and airport businesses, and Adani Green Energy, which focuses on renewable power generation. These areas accounted for 61% of the total gross asset additions, with expected gains to reflect in FY25 earnings.
The Adani Group maintained high liquidity with a cash balance at 24.8% of gross debt, amounting to Rs 59,791 crore (USD 7.2 billion), providing a strong liquidity cover.
In FY24, Adani Enterprises commissioned new facilities for solar module manufacturing, wind turbines, and a copper smelter. Adani Cement completed the acquisition of Sanghi Cement, and the company saw further investment from its promoters.
Adani Ports acquired Gopalpur port, Adani Power commissioned a 1.6 GW power plant at Godda, Adani Green added 2.8 GW of renewable energy capacity and started a solar project in Khavda, Gujarat, and Adani Energy Solutions installed 1,244 circuit kilometers of transmission lines.
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