Adani Portfolio, one of India’s highest-rated infrastructure portfolios, on Wednesday released its half-yearly credit performance. In the last six months, it said, the company has lowered net debt by 3.6 per cent and raised cash reserves by 13.7 per cent, all while delivering an all-time high half yearly profit (EBITDA – earnings before interest tax and depreciation) growth of 47 per cent to Rs 43,688 crore. The cash reserves as on 30th Sep 2023 was at Rs 45,895 crore, up by Rs 5,544 crore in H1 FY2024 along with continued growth.

Notably, over 80 per cent of the EBITDA is contractual and 68 per cent of EBITDA is A+ rated, thus providing the highest level of stability and multi-decadal cash flow visibility. These strong cash flows have allowed unconstrained investments as reflected by the increase in asset base to Rs 4.48 lakh crore ($54 billion). Equity deployment, meanwhile, is at 59.8 per cent of the total asset base, much higher than industry standards.

High levels of Liquidity

The cash balance across portfolio companies is the highest ever at Rs 45,895 crore ($5.5 billion), up 14 per cent than six months ago, and exceeds long-term debt repayment for the next 18 months.

Gross assets increase supported by higher equity investment

Despite ongoing deleveraging and higher cash balances, the Portfolio companies have maintained their commitment to investment as reflected by the increase in the asset base, it said. Total Gross Assets of the portfolio increased by 6 per cent or Rs 25,240 crore ($3 billion) during the period, reaching Rs 4.48 lakh crore ($54 billion), courtesy higher equity investments supported by strong cash flows from the businesses.

Equity investment in gross assets is as high as 59.8 per cent while debt investment is at 40.2 per cent, it said. This is primarily due to higher cash flows from the Portfolio businesses, which allowed prioritizing equity over debt.

Headquartered in Ahmedabad, the Adani Portfolio has interests in logistics (seaports, airports, logistics, shipping and rail), resources, power generation and distribution, renewable energy, gas and infrastructure, agro (commodities, edible oil, food products, cold storage and grain silos), real estate, public transport infrastructure, consumer finance and defence, and other sectors.