Adani Group cites reducing debt burden to refute overleveraged view – Times of India

New Delhi: Adani Group said its companies had reduced their debt burden, as the empire backed by Asia’s richest man sought to refute a report that said its finances had increased.
Using figures different from those quoted by CreditSights in the report last month, the Indian conglomerate said the leverage ratios of their companies “remain healthy and in line with industry benchmarks.”
“Companies have consistently de-levered,” the group said, adding that the net debt to Ebitda ratio has declined from 7.6 times to 3.2 times over the past nine years.
CreditSites, a unit of Fitch Group, said Monday that the empire built by billionaire Gautam Adani was “deeply over-leveraged” due to an expansion that “put pressure on its credit metrics and cash flow.”
Adani, 60, has over the years expanded its coal-to-ports group into everything from data centers to cement, media and alumina. The group now owns India’s largest private sector port and airport operator, city-gas distributor and coal miner.
Adani also pledged to invest $70 billion in green energy to become the world’s largest renewable energy producer.
Monday’s report listed Adani Enterprises as having an earnings before interest, taxes, depreciation and amortization (Ebitda) ratio of 1.98 to gross interest. CreditSites listed a figure of 1.6.
It also cited metrics such as the share of debt in equities, which Adani did not mention.