New Delhi:
Adani Group may spend $100 billion on energy transition projects and digital infrastructure over the next decade, research group Jefferies said in a report on Friday. This has been said in the Jefferies report on Friday. At the investors’ meet, Adani Group Management highlighted strong operating performance in FY24, 27 percent CAGR for five years and highest ever profit in the business.
The Adani portfolio achieved EBITDA (including operating income) of $10 billion in FY24. Which is 40 percent more than last year.
“More than 80 per cent of EBITDA comes from the infra-related business,” management also said, adding that the business’s high cash flow after tax (FFO) is sufficient to cover all debt maturities.
According to the company, contracted EBITDA is 80 percent of total group EBITDA and cash reserves are more than 20 percent of debt, which helps address the group’s cash flow and systemic risk. “Management does not see refinancing risk at group level,” the report also said, adding that despite rate and foreign exchange volatility, effective capital management planning has reflected in profile stability with rate hikes.
“The group will look to capitalize on this in the medium term,” it said. For Adani Enterprises Limited, the GH2 (Green Hydrogen) projects will be the highest capital expenditure undertaking of the group.
“The airport business should benefit from growth in traffic and non-aeronautical trends. The company intends to bid for new airports under India’s Airport Privatization Scheme,” the report said.
Recently a copper project was launched and work has started on a PVC project from coal. “Management sees net debt/EBITDA at no more than 5 times capital expenditure,” the report said.
“The company expects to reach Rs 3,650 per tonne (down from Rs 500 currently) by FY28, which will be the best globally,” Jefferies said, “planning to consolidate the companies into a single entity and work to identify the best structure.”
Meanwhile, Adani Green installed 10.9 GW of capacity in March and another 11 GW of projects are under implementation.
“The company aims to add 6-8 GW of capacity per year in FY25E and FY26E.
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