Adani Ports to repay ₹5,000-cr in debt by FY24, says Karan Adani
2 min read . Updated: 07 Feb 2023, 08:30 PM IST
PremiumTo improve its debt ratio, Adani Ports and Special Economic Zone plans to repay ₹5,000 crore in debt by the next financial year 2023-24, said company's CEO, Karan Adani on Tuesday
To improve its net debt ratio, Adani Ports and Special Economic Zone is planning to repay ₹5,000 crore in debt by the next financial year 2023-25, informed the company's whole-time director and Chief Executive Officer Karan Adani in a statement on Tuesday.
In his recorded video message, Karan Adani said that the company is planning to repay the total loan and prepay around ₹5,000 crore to improve its net debt-to-Ebitda ratio.
"We are considering total loan repayment and prepayment of around ₹5,000 crore, which will significantly improve our net debt-to-Ebitda ratio and bring it closer to 2.5x by March 2024," said Karan Adani in the video message.
The Indian port operator, on Tuesday, reported a 12.94 % fall in its consolidated net profit to ₹1,336.51 crore in the December quarter. The company reported a profit of ₹1,535 crore in the same quarter in previous financial year. The company's revenue grew by 17% YoY to ₹4,786 crore in third quarter of current financial year.
Amid the ongoing chaos due to the release of the Hindenburg report that questioned the operation of Adani group, its decision to prepay its debt and loans will help the company in releasing its shares of different operations.
Adani Group, on Monday, had announced that its promoters will pre-pay $1,114 million for the release of pledged shares before their maturity period which was due in September 2023.
With the prepayment, the company would be able to release 168.27 million shares of Adani Ports & Special Economic Zone Ltd, 11.77 million shares of Adani Transmission Ltd, and 27.56 million shares of Adani Green Energy Ltd.
The company, in its official statement, announced that the promoters have posted the amounts to prepay $1,114 million ahead ot its maturity of September 2024. The decision has been taken by keeping in view the recent market volatility.
Adani Group also planned to cut down its capital spending while providing more collateral as stock pledges to lenders, Mint reported on Monday. However, Adani Ports has denied from cutting its capital spending in the coming time.
“At Adani, there is a rethink on the capex. The group may moderate its capex plans in some of the businesses. So, instead of targeted growth over 12 months, they may look at a time frame of 16-18 months for that quantum of growth in certain businesses," the report stated.
To save the the company from the risk of default, Adani Group's domestic lenders are abstaining from planning to cut off the conglomerate from utilising sanctioned but unused credit lines.
"False report, on the contrary Adani Group is moving to prepay all LAS (Loans Against Shares) finance," a spokesperson for the group said in an emailed statement to Reuters.
Ahead of the quarterly result announcement, shares of Adani ports, showcased an impressive performance on the stock markets. Its shares closed 1.33% higher at ₹553.30 on BSE on Tuesday.
