Adani Group to invest $14 billion in FY25
Adani Group plans to invest more than ₹1.2 lakh crore (about $14 billion) across its portfolio companies that range from ports to energy, airports, commodities, cement and media in fiscal year starting April 1, as it doubles down on its $100 billion investment guidance over the next 710 years to grow businesses, sources said.
The projected capital expenditure or capex for 202425 (April 2024 to March 2025) fiscal is 40 per cent higher than what the portfolio is estimated to have incurred in FY24.
According to analysts, the portfolio is estimated to have incurred a capex of around $10 billion in FY24 that ends on March 31. Sources said these investments will set the stage for exponential profit growth.
Most of this investment is going to go into fast growing businesses — renewable, green hydrogen and airports.
GREEN PORTFOLIO
As much as 70 per cent of the planned capex will go into its green portfolio — primarily renewable power, green hydrogen, green evacuation.
Of the remaining 30 per cent, the majority will be spent towards airports and ports businesses, they said.
In calendar year 2023, the portfolio delivered a $9.5 billion EBITDA (up 34.4 per cent yearonyear), while its net debt has reduced by 4 per cent from March 2023 to September 2023 (balance sheet figures are only declared half yearly).
In the December quarter, Adani’s portfolio reported record EBITDA growth of 63.6 per cent, taking its 12month EBITDA to an alltime high of $9.5 billion (₹78,823
Most of the investment goes into fast growing businesses — renewables, green hydrogen and airports
crore) in 2023. Increasing cash flows from fast growing profits have set the stage for megascale investments, sources said.
Its net debt to EBITDA at the end of September was 2.5x, which is expected to decline by the end of FY24, sources said.
RISING CASH FLOW
In a media statement released in February, the group said increasing cash flows from strong growth and robust credit profile has set the stage for unrivalled ‘Green Investment’.
A school dropout, group chairman Gautam Adani started out as a commodities trader and rose to become Asia’s richest person with an empire spanning across ports, power generation, airports, mining, renewables, gas, data centres, media and cement.
India’s largest infrastructure conglomerate with showcase projects like Navi Mumbai Airport, Ganga Expressway, world’s largest renewable park at Khavda in Gujarat and Mundra Port has committed a $100 billion investment over the next 710 years.
The conglomerate is building the world’s largest renewable park at Khavda, Gujarat, spanning over 530 square kilometres — an area five times the size of the city of Paris.