In adherence to their unwavering commitment to transparency, we present the comprehensive Credit and Result compendium for the Adani Portfolio’s financial year 2023-24, reflecting their steadfast dedication to excellence.
The performance throughout FY24 and the preceding five years underscores the resilience and strength of the Adani Portfolio, showcasing the robustness of its enterprises. Despite external fluctuations and challenges, the portfolio continues to exhibit substantial and consistent growth, underscored by a superior capital allocation strategy aimed at maximizing returns while mitigating risks.
Adani Portfolio Achieves Record-Breaking Financial Results
The fiscal year 2023-24 witnessed the Adani Portfolio reaching unprecedented heights, demonstrating remarkable resilience, strength, and stability. Notably, the portfolio achieved a historic 45% growth in EBITDA, setting a new benchmark for success. Bolstered by surging cashflows and reinforced credit profiles, the Adani Portfolio stands at its strongest position yet, poised for accelerated growth.
EBITDA: The Adani Portfolio’s EBITDA surged to USD 10 billion in FY24, marking a remarkable 45% year-on-year growth, representing the highest achievement in its history. Cash Profit or FFO: The Cash Profit from Funds Flow from Operations (FFO) soared to USD 6.7 billion, reflecting a noteworthy 51% year-on-year growth. This impressive performance can be attributed to a disciplined investment approach that ensures high conversion of EBITDA into cash profit. Core Infrastructure EBITDA: The core infrastructure and utility platform contributed significantly to the portfolio’s success, generating USD 8.3 billion, which accounts for 84% of the total EBITDA. The platform’s user base expanded to over 350 million, underscoring its rapid growth and increasing consumer franchise across various sectors such as airports, electricity distribution, smart metering, gas distribution, and direct-to-consumer digital platforms. Gross Assets: Total Gross Assets experienced a substantial increase of USD 8 billion, reaching USD 57.4 billion, reflecting a commendable 16% growth. Conservative Leveraging: The rising cash profit played a pivotal role in reducing net leverage significantly. The Net Debt to EBITDA ratio decreased from 3.3x in FY23 to 2.2x, notably lower than the industry standard. Liquidity Position: The portfolio’s cash reserves reached USD 7.2 billion, the highest ever recorded, marking a remarkable 48.5% increase from the previous year and accounting for 24.8% of gross debt. Ratings: The predictable cashflows led to multiple rating upgrades across portfolio companies. Notably, Adani Ports and Special Economic Zone attained the prestigious ‘AAA’ rating, making it the first large-scale Indian infrastructure company to achieve this distinction. Additionally, three listed portfolio companies—APSEZ, Ambuja Cement, and ACC—now boast the highest INR rating of ‘AAA’. Two entities under AESL, Alipurduar Transmission and Western Transmission, also hold the coveted ‘AAA’ rating. Diversified Funding Sources: The Adani Portfolio’s debt profile is characterized by a balanced exposure to domestic banking, global banking, and capital markets. Domestic banking represents 36% of the total debt mix, while domestic capital markets and global banking account for 5% and 26%, respectively. Global capital markets constitute 29%, with the remaining 4% sourced from other avenues.
