SHIMONA SHARMA
The North News
Chandigarh, February 21
The Adani Group has announced an ambitious capital expenditure plan of over $100 billion over the next decade, marking a strategic shift towards using expanding cash flows rather than debt to fuel growth, Business World reported. The conglomerate’s portfolio companies—spanning renewable energy, transmission, logistics, and airports—are gearing up for large-scale investments aimed at strengthening Adani’s global presence by 2030. “The group’s portfolio is now poised for a robust capex phase, underpinned by rising cash flows and a strong commitment to project execution,” the company stated.
According to Mint, Adani Group’s portfolio companies recorded an EBITDA of ₹86,789 crore in the year ending December 2024, reflecting 10.1% growth, or 21.3% when adjusted for prior period income. Over the past five years, the group has seen significant credit rating upgrades, with 75% of its profits now coming from assets rated ‘AA-’ or higher, up from under 50% in FY19.
Infrastructure remains central to Adani’s growth, with utilities, transport, and energy accounting for 85% of total profits. The group’s ‘Core Infrastructure’ businesses—Adani Enterprises, Adani Green Energy, Adani Power, Adani Energy Solutions, Adani Total Gas, and Adani Ports and SEZ—continue to be the main cash flow drivers, contributing 84 percent to total EBITDA.
As of September 30, 2024, Adani Group held ₹53,024 crore in cash, representing 20.5% of its gross debt. With a 12-month EBITDA surpassing $10 billion, its projected capex for FY25 is expected to contribute around 15% of India’s total infrastructure spending outlined in the Union Budget 2024-25.
