Adani Group rebuilds investor confidence

The Adani Group, which owns Ambuja Cements and ACC Ltd, is reportedly targeting 20 per cent YoY growth in pretax profits to INR900,000m (US$10,971m) within the next 2-3 years. According to Live Mint, the growth is expected to come from various sectors, including cement, airports, energy, logistics and power. The group has recently repaid loans amounting to US$2.65bn as part of a prepayment programme to reduce overall leverage and regain investor confidence following a negative report by US short seller Hindenburg in January 2023. 

The group’s robust investments, particularly in ports, renewables and transportation, have helped boost its growth of late, resulting in a significant YoY growth in EBITDA for businesses such as Adani Enterprise Ltd. According to the group, it has made progress in reducing its net debt to EBITDA ratio and maintaining strong financial discipline. There are no immediate concerns regarding debt maturity, refinancing risk or liquidity requirements, reports Live Mint. 

The Adani Group management added that there are no impending substantial loan maturities, which means there is no immediate need for funding. It has fully repaid US$2.15bn in loans that were obtained by using shares in the conglomerate's publicly traded companies as collateral, as well as another US$700m in loans obtained for the purchase of Ambuja Cements.