Billionaire Gautam Adani’s group said its cash balance accounted for 24.8% of gross debt as of the end of the first quarter of the fiscal year that began in April, up from 17.7% a year earlier, according to its earnings release Monday.
The port-to-power conglomerate’s Ebitda, or earnings before interest, tax, depreciation and amortization, rose 33% to about 225.70 billion rupees ($2.7 billion) in the quarter ended June 30.
The stronger financial performance comes at a time when the conglomerate’s flagship firm Adani Enterprises Ltd. is considering raising around 100 billion rupees to 120 billion rupees through a share sale, following the recent success by its energy transmission unit in raising $1 billion.
The completion of such financing and signs of improved cash flows would help Adani Group recover investor confidence after US short-seller Hindenburg Research accused it of widespread fraud and corporate malfeasance in early 2023, leading to a rout that at one point erased more than $150 billion from its market value. Adani has repeatedly denied these claims.
Adani Group’s gross debt stood at 2.41 trillion rupees at the end of the quarter.
