Adani Group's cash balance at all-time high of Rs 42,000 cr in Q1
Adani Group's cash balance has reached an all-time high of ₹42,115 crore in the June quarter, an increase of ₹1,764 crore from the previous quarter, helped by a series of strategic initiatives.
The company's net debt to operating profit ratio has fallen below three for the first time in a decade, on a run-rate basis, the company said in a statement on Thursday.
The total equity deployed has surged to 55.77% of its total assets, marking a significant rise from 40.16% at the end of FY19.
By FY23, the equity deployed had reached approximately ₹2.36 lakh crore.
The company's core infrastructure and utility platform accounted for 86% of the operating profit in the June quarter and 83% of its total operating profit in FY23.
Adani companies have diligently focused on fortifying their financial standing, establishing a robust foundation for their ambitious projects, the company said in its statement.
During the June quarter, the company's operating profit rose 42% year-on-year to ₹23,532 crore, while its net debt logged a combined annual growth rate of 14.56%.
The group has successfully mitigated concentration risk by diversifying its sources of financing from both global and domestic banks and capital markets.
This approach has fortified its maturity cover for debts, ensuring refinancing protection and eliminating systematic risks.
In FY23, the company's free cash flow, when combined with its cash reserves, recorded a ratio of 2.72 times the average debt maturity cover of 6.55 years, effectively eliminating the risk of refinancing.
