New Delhi:
अगेल: Adani Green Energy Limited (AGEL) continues to demonstrate strong financial position with high liquidity levels and strong EBITDA in the first half of the current financial year (H1 FY25). The liquidity position of the company can be gauged from its adequate cash reserves. This provides coverage for its borrowing needs and also protects against potential market fluctuations.
AGEN, one of India’s leading renewable energy companies, said cash balance remains strong, reaching Rs 10,209 crore by September 2024. This gives AGEN a strong cash-to-debt ratio. This ensures that the company is well positioned to meet its financial obligations without putting pressure on its operational sustainability. The gross debt of the company was Rs 61,826 crore and net debt was Rs 51,617 crore.
Adani Green’s trailing twelve-month Ebitda or earnings before interest, taxes, depreciation and amortization was projected to reach Rs 9,940 crore by September 2024, showing steady growth. Adjusted run-rate Ebitda for the period was slightly more than Rs 10,709 crore. The performance is strengthened by the fact that approximately 90% of AGEN’s power supply is contracted, which provides stability to its earnings.
AGEN’s liquidity strength has helped it maintain a net debt-Ebitda ratio of 5.19x, within the acceptable range for the energy sector. Furthermore, the company’s overall financial risk remains under control despite the growing debt profile due to significant cash reserves.
Ratings stable, finances strong
AGEN’s credit rating remains stable. In this, international agencies like Fitch, Moody’s and S&P have maintained a positive outlook. The company has received BBB- rating from Fitch, Ba1 from Moody’s and BB+ rating from S&P for its restricted group structure. This shows good financial management of the company.
AGEL’s domestic rating is equally strong, with India Ratings and CRISIL giving AA-/Stable and AA+/Stable ratings respectively. In terms of debt maturity, AGEN has a clear refinancing plan. The company expects to refinance the go-to-market facility of Rs 17,669 crore payable in FY25, FY29 and FY31 using an amortising loan structure. Additionally, the $750 million bond, which matures and is fully redeemed in September 2024, demonstrates AGEL’s ability to effectively manage foreign debt.
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