Mission 2025: Adani group eyes 90% Ebitda via infrastructure business

The Adani group will be generating almost 90 percent of its Ebitda (earnings before interest, tax, depreciation, and amortisation) from infrastructure business by 2025 as compared to 83 per cent generated from these businesses currently, top company officials told bankers recently.

Of the infrastructure business, 49 per cent of the profits are currently contributed by energy and utility, another 25 per cent by transport and rest by cement and logistics businesses. This will go up substantially as several new projects like Navi Mumbai airport and other projects get commissioned and contribute to the overall Ebitda pie, bankers were told.  Higher contribution by infrastructure business to overall Ebitda pie would give stable cash flows to the group which can be used to repay debt or for more capex, officials said 
 

"Adani portfolio has taken leadership position in all its businesses as it has  set up cash generating, strong businesses. This trend has continued in the first quarter of the ongoing fiscal," said a source privy to the presentation.
 

Other business of AEL including mining and trading account for 9.6 per cent of the EBITDA. The total EBITDA earned by Adani companies was up 36 per cent to Rs 57,219 crore in the fiscal 2023.
 

The group will be refinancing it's one year tenure loans taken for cement acquisition by year-end when the tenure comes to an end, said a company official. "We will be replacing the one year tenure loans with three year loans and talks with bankers are on," said an official, asking not to be quoted.
 

Some of the group companies like Adani Ports has already started buying back bonds and it will buy back loans in four more tranches in coming year, the official said.
 

The banks have taken a positive view of promoters selling shares and prepaying debt. The cash balance at the listed portfolio is now over $4.75 billion or Rs 40,351 crore.
 

Among group companies, the flagship Adani Enterprises' new businesses now account for half of AEL’s earnings.
 

This was fuelled by rising airport passenger movements that more than doubled to 74.8 million passengers. Solar module volumes were up 13 per cent to 1.3 Gw. The company completed three road projects during the year; its data centre projects are nearing completion.