Crisil: No Negative Reactions from Lenders and Investors on Adani After US Indictment
The Adani Group had an impressive Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 82,917 crore for fiscal 2024, along with a net debt-to-Ebitda ratio of 2.19 times. Despite recent challenges, CRISIL Ratings has expressed confidence in the group’s liquidity and operational cash flows. They stated that Adani Group has the financial stability to meet debt obligations and capital expenditures, with no negative reactions from lenders or investors following the US indictments of key individuals from the group.
CRISIL Ratings highlighted the group’s ability to adapt to changing financial markets by reducing discretionary capital expenditure when necessary. Additionally, the Adani Group boasts a healthy Ebitda and cash balance, reducing its reliance on external debts to maintain its operations. This flexibility gives the group a solid foundation to navigate potential financial uncertainties.
While recent legal actions in the United States against some Adani Group members have raised concerns, CRISIL Ratings emphasized that this has not negatively impacted the group’s financial stability. The Adani Group’s strong financial performance in fiscal 2024, with a healthy Ebitda and significant cash reserves, provides a cushion against external pressures.
Despite ongoing legal proceedings and potential regulatory challenges, the Adani Group remains well-positioned to meet its financial obligations and committed capital plans in the medium term. CRISIL Ratings continues to monitor the situation closely, noting that any adverse regulatory or judicial actions could pose risks to the group’s financial standing. The agency stresses the importance of monitoring developments that may impact the group’s access to capital and its ability to refinance upcoming repayments. Overall, the Adani Group’s financial resiliency and track record are key factors in maintaining its stability in the face of evolving challenges.
