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The Adani Group, which has been facing controversies since January, has prepared a plan to repay the huge debt in the next 3-4 years. The group expects to repay about $23 billion in debt over the next 3-4 years. For this, the Adani group expects a 20 per cent increase in earnings from all businesses, including ports, airports and energy.
several meetings in three weeks
In a news of news agency PTI, this information has been given by quoting sources. According to the news, Adani Group officials have met bank officials, bond holders, analysts and investors from Singapore to the US in the last three weeks. The purpose of these meetings is to end the skepticism that has arisen about the Adani group after the report of the American short seller firm Hindenburg Research. According to a PTI report, the market valuation of the group’s listed companies had declined by $135 billion after the Hindenburg Research report.
Adani group is trying this
The Adani group has been making every effort to win back the confidence of investors since the Hindenburg report came to the fore. In this connection, companies of Adani group have paid many loans ahead of time. Adani’s efforts also seem to be getting success, because after the controversial report on January 24, the brightness of Adani’s shares, which had to face selling for almost a month, has returned. After the last week of February, shares of Adani Group have gained in almost every session.
Adani group changed plan
Sources related to the matter told PTI that in these meetings, Adani gave information about the growth in the business of the group. With increasing efficiency in its energy business, the group is now focusing on debt reduction instead of rapid expansion. A 20 per cent increase in earnings before tax (EBITDA) in group companies will help overcome debt.
Earnings increased like this in the last 10 years
According to sources, during the year 2013 to 2022, the earnings of group companies have increased by 22 percent on an annual basis. Now if the earnings grow at 20 per cent, then by the year 2025 the debt-EBITDA ratio will come down to 3 per cent from the current 7.6 per cent. This ratio tells the amount of debt on the companies. If this ratio is high, then it shows that the company or group has heavy debt. And a low ratio indicates low debt.
debt repaid
According to sources, the company management has told investors that once revenue starts rising, the debt ratio will automatically come down. The current income before tax of Adani Group is Rs 61,200 crore. At the same time, it has a net debt of Rs 1.89 lakh crore (about $ 23 billion). Citing what the management said in the meeting, sources said that the group has so far repaid a loan of $500 million and with the increase in earnings, most of the borrowings will be finished in the next three to four years. The group is expected to grow earnings from cement, renewable energy, port and road businesses.
These loans on Adani group
Of the total debt of the Adani group, 37 per cent is in the form of bonds. At the same time, 31 percent of the loan is from public sector banks and eight percent from private banks. Hindenburg Research, in its report released on January 24 this year, had talked about irregularities in the accounts of the Adani group and excessive debt. However, the Adani group rejected the report outright and termed it completely baseless.
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