Adani Group Showcases Resilient Financials Amid Bribery Allegations

The Adani Group has reassured investors of its robust financial health by highlighting its significant liquidity and growth strategies. Despite a US indictment alleging bribery, the conglomerate maintains strong cash reserves and plans for substantial investments while minimizing dependency on external debt.

The Adani Group, led by billionaire Gautam Adani, aims to reassure investors amid recent US bribery allegations against its founder and two executives. Despite the legal challenges, the group emphasizes its capacity to meet debt obligations and pursue growth plans, showcasing a solid financial performance.

In a presentation to investors, the conglomerate detailed cash reserves of Rs 55,024 crore, surpassing long-term debt repayments for 28 months. The group's strategic shift towards equity, now making up two-thirds of its total asset creation, marks a significant change from five years ago. Both its liquidity and asset investments demonstrate resilience despite the indictment's impact on stock prices.

Adani's portfolio shows promising cash flows with a Fund Flow from Operations (FFO) of Rs 58,908 crore, supporting future investments with minimal reliance on external financing. Recent global events have sparked concerns about fundraising, with some banks contemplating limiting credit exposure. Nonetheless, the group maintains a low debt gear and a proactive stance on legal challenges.

(With inputs from agencies.)