Adani flaunts robust earnings, low debt; says best is yet to come

New Delhi: Gautam Adani Affirms Adani Group's Strength Amid Challenges

Billionaire Gautam Adani highlighted record earnings, robust cash positions, and the lowest debt ratios to assert that his ports-to-energy conglomerate is stronger than ever and poised for future growth. Speaking at the annual shareholders meeting of Adani Enterprises Ltd, India's second richest individual reflected on the unprecedented crisis faced by the conglomerate last year due to baseless accusations by a US short seller.

"We confronted groundless allegations that questioned decades of our hard work. Despite this unprecedented attack on our integrity, we proved that no challenge could weaken the foundations of our Group," said Adani, who celebrated his 62nd birthday on Monday.

Hindenburg Research accused the Adani Group of stock manipulation, accounting fraud, inflating valuations, and creating a complex network of shell companies, leading to a substantial drop in market values.

Adani Group denied all allegations but acknowledged the impact on market values, especially during the Rs 20,000 crore follow-on public offer in January 2023. Despite the challenges, the Group strategically raised Rs 40,000 crore to cover upcoming debt repayments, prepaid Rs 17,500 crore of margin-linked financing, reduced debt, and focused on business improvement.

"This approach not only strengthened our financial resilience but also positioned us for future expansion," Adani emphasized. "The headwinds we faced became catalysts for our strength."

He showcased ambitious projects such as the 30 GW renewable energy park in Gujarat's Khavda desert, slated to power nations like Belgium and Switzerland, alongside initiatives like Dharavi redevelopment and the development of Drishti 10 Starliner UAV for border protection.

"In 2023-24, we achieved record financial milestones with our highest EBITDA of Rs 82,917 crore (approx. USD 10 billion), a surge of 45 percent. Net profit soared to a record high of Rs 40,129 crore, while our net debt to EBITDA ratio improved from 3.3x to 2.2x," he added, highlighting an all-time-high liquidity of Rs 59,791 crore.

"With record results, robust cash positions, and historic low debt ratios, we are primed for greater achievements ahead," Adani affirmed. "The possibilities are vast. We are stronger than ever, and our best is yet to come."

In a world grappling with geopolitical tensions and climate change, Adani emphasized India's rise, stating, "This is India's moment. We stand on the brink of our greatest growth phase, poised to become the world's third-largest economy by the decade's end."