Adani group refutes “overleverage” view, cites reduced debt load

Using numbers that contradicted the CreditSights report from last month, the Conglomerate said,” “continue to be healthy and are in line with industry benchmarks.”

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Adani Group has stated that they have reduced the load of debt to deny the report that suggested that the company’s finances were over-stretched.

Using numbers that contradicted the CreditSights report from last month, the Conglomerate said,” “continue to be healthy and are in line with industry benchmarks.”

“The companies have consistently de-levered, with the net debt to Ebitda ratio declining to 3.2 times from 7.6 times in the last nine years.” The group added.

The empire created by billionaire Gautam Adani was described as “seriously overleveraged” by CreditSights, a Fitch Group subsidiary, on Monday as a result of an expansion that “pressed its credit metrics and cash flows.”

The 60-year-old Adani has invested the last five years in growing his coal-to-ports conglomerate by foraying into a variety of industries, including data centres, cement, media, and alumina. The group today controls the largest private-sector coal miner, city-gas distributor, and operator of ports and airports in India.

Adani also promised to invest $70 billion in renewable energy, making it the largest producer in the world.

In the report released on Monday, Adani Enterprises was noted as having an Ebitda to gross interest ratio of 1.98. A number of 1.6 was provided by CreditSights.

It also cited metrics such as the share of debt to equity, which Adani did not refer to.

 

 

Data: Bloomberg