Trimmed PSB loans by over 50%: Adani Group
Says group firms not overleaveraged, but consistently deleveraged loans from public-sector banks; Net debt-EBITDA ratio declining to 3.2x from 7.6x in last 9 yrs
image for illustrative purpose
Fund Mobilisation Via Bonds
- Gross debt was Rs1.88 lakh cr in March 2022
- And net debt was Rs1.61 lakh cr after considering the cash balance
- PSB loans accounted for 55% and pvt banks 31% in FY16
- Pvt bank loans reduced to 11%
- Money raised through bonds jumped from 14% of all loans to 50%
New Delhi: Richest Indian Gautam Adani's conglomerate has cited an improved net debt to operating profit ratio and more than halving of loans from public-sector banks (PSBs) to allay concerns about it being overleveraged.
In a 15-page note in response to CreditSights report calling the group overleveraged, it said companies in the group 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 businesses operate on a simple yet robust and repeatable business model focused on development and origination, operations and management and capital management plan," the note, reviewed by PTI, said. The group had a gross debt of Rs 1.88 lakh crore in March 2022 and net debt of Rs 1.61 lakh crore after considering the cash balance. While loans from public sector banks in 2015-16 accounted for 55 per cent of all debt of the group firms, in 2021-22, borrowing from PSBs made up for 21 per cent of all debt, it said. In FY2016, private banks accounted for 31 per cent of loans, which has now shrunk to 11 per cent. Money raised through bonds has jumped from 14 per cent of all loans to account for 50 per cent now.
