Crisil: No Negative Response from Lenders or Investors Regarding Adani US Indictment
The Adani Group recently announced an impressive Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 82,917 crore for fiscal 2024. This demonstrates the conglomerate’s strong financial performance. The net debt-to-Ebitda ratio stands at 2.19 times, highlighting a healthy financial position.
Rating agency CRISIL Ratings has shown support for the Adani Group amidst recent challenges. They confirmed that the group has ample liquidity and operational cash flows to fulfill debt obligations and planned capital expenditures. Importantly, there have been no negative actions by lenders or investors following the US indictment of the group’s founder chairman.
CRISIL Ratings emphasized the Adani Group’s ability to adapt its capital expenditure based on market conditions. They noted a healthy Ebitda and cash balance, reducing the need for external debt to sustain operations. The group’s flexibility in adjusting discretionary capital expenditure is a strategic advantage in changing financial landscapes.
The recent legal issues faced by the group are being monitored closely by rating agencies. The Adani Group reported a substantial cash balance of over Rs 53,000 crore as of September 2024 across 8 listed operating entities. This significant cash reserve provides stability against long-term debt maturities and planned fiscal expenditures.
Despite the legal challenges, the Adani Group remains resilient. CRISIL Ratings confirmed that lenders and investors have not taken any negative actions against the group. The group’s access to capital markets remains stable.
Moving forward, the Adani Group’s financial strength and ability to navigate regulatory and legal challenges will continue to be monitored. The group’s liquidity and operational cash flow position are sound, ensuring the ability to meet debt obligations and committed capital expenditure plans in the medium term. Adverse regulatory or judicial actions could impact the group’s financial standing, so ongoing monitoring is crucial.
