New Delhi: Indian credit rating agency Crisil has maintained a positive outlook on the Adani Group after bribery charges were filed against top officials of Adani Green Energy, including Gautam Adani, in a US court. Crisil said that the Adani Group has sufficient financial flexibility and operational cash flow, which will help it meet its loan liabilities and capital expenditure.
Crisil also said that so far no negative impact has been observed following these allegations, such as any acceleration in debt repayments or reaction by investors. It noted that Adani Group companies enjoy additional flexibility due to their relationship with the group as they are one of India's leading infrastructure groups. Further, Crisil said that Adani Group has accumulated sufficient cash to meet its financial obligations and capital expenditure plans and can ensure that its operations will continue. Adani Group
Has reported EBITDA of Rs 82,917 crore for FY24, and has a net debt-to-EBITDA ratio of 2.19 times. It has cash reserves of Rs 53,000 crore under its 8 listed operating companies, while an amount of Rs 27,500 crore has been kept to pay long-term debt. Crisil said that if there is any change in the financial market or capital availability in the future, the Adani Group has the flexibility to reduce its capital expenditure.
However, Crisil also cautions that if there is any adverse regulatory, judicial, or government action in the future, it could make the situation more serious. Apart from this, if Adani Group faces any hindrance in accessing domestic and international capital or if it faces any difficulty in refinancing its loan, it will not be ignored. The market capitalization of Adani stocks had fallen by Rs 2.2 lakh crore after the bribery allegations but the recent rally has covered most of the losses and it is now on the verge of getting back to its previous level.
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