Adani touts financial strength, shows can grow without external debt
New Delhi (PTI): Billionaire Gautam Adani's conglomerate on Monday touted its financial and credit details of its portfolio companies to investors, showcasing its robust profits and cash flows that can sustain growth without reliance on external debt.
The ports-to-energy conglomerate, which has been hit by an indictment in a US court against its founder chairman Gautam Adani and two other executives for allegedly bribing Indian official to secure solar power contracts, in a presentation to the investors highlighted its consistently expanding profits and cash flows, which over a period have led to lowering dependence on debt for its growth ambitions.
Equity now accounts for almost two third of its total asset creation, a stark contrast to five years ago. In the last six months, the group has invested close to Rs 75,227 crore, against a total debt increase of only Rs 16,882 crore.
A note was also shared with the investors, along with presentations.
Outlining the group's liquidity position, the note said, "Adani Portfolio companies have sufficient liquidity to cover all debt servicing requirements for at least 12 months. As of September 30, 2024, Adani Portfolio companies had a cash of Rs 53,024 crore, which was close to 21 per cent of its total gross debt outstanding".
This amount, it said, was sufficient to cover the next 28 months of debt servicing requirement.
GROWTH WITHOUT DEBT
In the past, the group has announced plans to invest over Rs 8 lakh crore (USD 100 billion) across portfolio companies in the next ten years.
The Fund Flows from Operations (FFO) or cash profits stood at Rs 58,908 crore for the last twelve months and is growing over 30 per cent for the past five years. On the basis of this, even after assuming no growth, the group will be able to invest Rs 5.9 lakh crore only from its internal cash accruals over the next ten years, leaving very little dependency on external debt.
Further, at the portfolio level, there is very low debt gearing of 2.46x -- which means it has massive headroom for debt, according to the presentation.
Other highlights from the presentation included EBITDA (earnings before interest tax and depreciation) for the last twelve months, which it said is highly stable and hence predictable due to its infrastructure projects, which grew by 17 per cent to Rs 83,440 crore.
Also, existing annual cash flows alone can pay the entire debt in 3 years.
Gross assets/investments increased by Rs 75,227 crore, against total debt increase of only Rs 16,882 crore. Asset base has now increased to Rs 5.5 lakh crore.
Average cost of borrowing at 8.2 per cent, lowest in the last 5 years, due to upgrade in ratings across group companies, it said.
Adani Group's long-term debt from domestic banks was Rs 94,400 crore. This stood against a cash balance of Rs 53,024 crore, most of which was parked with Indian banks.
Borrowings from global banks were 27 per cent of total debt.
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AIMPLB warns of protests, legal battle over Waqf Amendment Bill
Bengaluru: The All India Muslim Personal Law Board (AIMPLB) on Monday addressed a press conference following the conclusion of its national convention in Bengaluru. The Board raised concerns over several pressing national and international issues, including the Waqf Amendment Bill, the Uniform Civil Code (UCC), and recent controversies surrounding places of worship in the country. The Board also spoke about the ongoing conflict in Gaza, terming it a "genocide."
Syed Qasim Rasool Ilyas, spokesperson for the AIMPLB, strongly opposed the proposed Waqf Amendment Bill, warning the government of protests and legal challenges if the bill is passed without thorough consultation with all stakeholders.
"Waqf properties are donated specifically for the benefit of the Muslim community and for charitable purposes. These properties cannot and should not be altered or interfered with by the government," he said. Ilyas emphasized the historical and legal sanctity of Waqf properties, stating that any changes to the law without proper discussion would be unacceptable to the community.
The Uniform Civil Code (UCC) was another critical issue discussed during the convention. Ilyas reiterated the Board's long-standing opposition to the UCC, stating that it threatens the pluralistic nature of Indian society.
"The UCC will disrupt the very fabric of this country. India thrives on its diversity, and a uniform code disregards this essential characteristic," he said. He explained that the Indian legal framework already accommodates individuals who choose not to follow their personal laws.
Ilyas also criticized the UCC implemented by the Uttarakhand government, calling it unconstitutional. "How can it be called a 'Uniform Civil Code' when it is applied only in one state?" he questioned. The AIMPLB plans to challenge the Uttarakhand UCC in the Nainital High Court through a Public Interest Litigation (PIL) soon.
The Board also addressed growing tensions surrounding places of worship, particularly the rising claims that some mosques were originally temples. Ilyas pointed out that such disputes are in violation of the Places of Worship Act, 1992, which mandates that the status of religious sites shall remain as they were in 1947.
"The Supreme Court, in its verdict on the Babri Masjid case, clearly stated that no further disputes of this nature should arise. Yet, we see new cases being brought up regularly," he said.
Citing a recent incident in Sambhal, Uttar Pradesh, where police action against protesters left two dead, Ilyas condemned the violence. "This incident was tragic and could have been avoided. It is deeply condemnable," he added.
The AIMPLB also expressed solidarity with the people of Palestine, highlighting the ongoing crisis in Gaza. Ilyas termed the situation a "genocide," pointing to the reported deaths of over 45,000 people in the last year.
"This is not a war; it is a genocide. The international community must take urgent steps to address the issue," he said. The Board called for a two-state solution as a pathway to peace and justice in the region.
The press conference was attended by several senior AIMPLB officials, including the Board’s president, Maulana Khalid Saifullah Rahmani. The officials emphasized the need for unity among stakeholders and the Muslim community to address the challenges highlighted during the convention.
The AIMPLB pledged to continue its advocacy through protests, legal actions, and public engagement to safeguard the rights of the community and uphold the constitutional values of the country.
