CRISIL Confirms Robust Credit Ratings for Adani Group Enterprises
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New Delhi, Nov 29 (NationPress) CRISIL Ratings has confirmed its robust credit ratings for Adani Group enterprises in its recent report published on Friday.
According to the CRISIL report, Adani Group possesses adequate liquidity and operational cash flows to fulfill its debt commitments and planned capital expenditures over the medium term.
In light of recent legal challenges, including a US indictment accompanied by significantly misleading media coverage, the agency has upheld a positive outlook on the group’s enterprises.
The report underlined the group's solid financial standing, strong business fundamentals, and a diversified portfolio of infrastructure assets. "These ratings are primarily influenced by the strength of their business and financial risk profiles. They also take into account the stability of cash flows, the infrastructure nature of assets with extended concession periods, and the level of cash flow cushions," the CRISIL report noted.
CRISIL has evaluated a total of 28 companies within the Adani Group.
For the fiscal year 2024, the Adani Group achieved a commendable EBITDA (earnings before interest, taxes, depreciation, and amortization) of around Rs 82,917 crore, with a net debt-to-EBITDA ratio of 2.19 times. The group’s cash reserves surpassed Rs 53,000 crore across eight publicly listed operational entities as of September 2024.
Moreover, CRISIL acknowledged that certain Adani Group entities gain advantages from their connection with the larger group, which stands as one of India’s premier infrastructure conglomerates. This connection offers additional flexibility and support.
Highlighting the group's varied infrastructure portfolio, which encompasses sectors such as energy, transportation, and utilities, the report emphasized that the group’s strong market position and capacity to adapt capital expenditures bolster its financial resilience.
While recognizing the potential repercussions of the ongoing legal proceedings, the agency will persist in closely monitoring the situation and any prospective regulatory, judicial, or governmental actions that may influence the group's financial standing and operations, as stated in the report.
