Asia’s richest man Gautam Adani said credit metrics at his businesses are improving and a deeper understanding of his rapidly expanding conglomerate would allay any concerns around its borrowings.
“Greatly surprised by the conversations about our debt,” Adani said in an interview with local news channel India Today late Wednesday. “In the past nine years, our profit has been growing at twice the rate of our debt.”
Asserting that the ports-to-power conglomerate is “financially very strong and secure,” the Indian billionaire said that the strong profit trajectory had helped pare the debt-to-EBITDA ratio to 3.2 from 7.6 in the same time period. That “is very healthy for a large group where most of the companies are in the infrastructure space.”
The first-generation entrepreneur — also the world’s biggest wealth gainer in 2022 — has been on a breakneck expansion spree that includes seeding new businesses as well as a spate of acquisitions. Adani is rapidly diversifying his empire beyond ports and coal-based businesses into green energy, airports, cement, media, data centers and metals. A lot of this growth has been debt-fueled, which has been red-flagged by some credit watchers.
The tycoon also said that his companies now have a broader lender mix. The share of loans from Indian banks has reduced from 86 percent to 32 percent in the overall debt portfolio in the past nine years. “Almost 50 percent of our borrowing is through international bonds,” he said.
Adani, who has often dovetailed his corporate strategy to federal government’s nation-building priorities, is also very bullish on India’s prospects. “This century belongs to India,” he said, elaborating that the country will add a trillion dollars to its GDP every 12 to 18 months within the next decade given its large middle class and young population.
Some of his other comments from the interview: India will emerge as a green hydrogen exporter as the government’s production-linked incentive plan makes the business viable and attractive.
The next budget is a great opportunity to address concerns about the global recession.
A strong focus on capital expenditure, employment, spending on social infrastructure and social security will help India in facing global headwinds
New Delhi Television Ltd., his latest acquisition in the media sector, would remain editorially independent. “NDTV will be a credible, independent global network,” Adani said.
Role across business is limited to “formulating strategy, capital allocation and their review,” giving the tycoon time incubate new businesses and look for acquisitions.
Adani effect propels India stocks past most world markets this yearIndia is set to rank among this year’s best-performing major stock markets globally, overcoming concerns about higher interest rates and an economic ... Economy
Work on India’s Adani port to resume after fishermen suspend protestsConstruction on a $900-million port in southern India is set to resume on Thursday after villagers blocking the entrance to the site of the Adani ... World News
NDTV founders Prannoy, Radhika Roy resign, Adani execs get on to holding firm boardThe founders of New Delhi Television Ltd. resigned from the board of the holding company that owns a major stake in the Indian broadcaster as Asia’s ... Economy
Flagship Adani firm to raise $2.45 billion via new share saleAdani Enterprises , the flagship company of ports-to-energy conglomerate Adani Group, said it will raise 200 billion Indian rupees ($2.45 billion) ... Economy
Takeover of NDTV a ‘responsibility,’ says India’s richest man AdaniIndian billionaire Gautam Adani sees the takeover of news broadcaster New Delhi Television Ltd (NDTV) as a “responsibility” rather than a business ... Financial Markets
Indian billionaire Adani’s firm weighs $1.8 bln fundraiseAdani Enterprises Ltd., the flagship firm of Asia’s richest person, is considering issuing at least $1.8 billion in new shares, according to people ... Economy
Adani, world’s third-richest person, may open family office in Dubai or New YorkAsia’s richest person, Gautam Adani, is considering setting up a family office overseas to manage his ballooning wealth, according to people familiar ... Economy
Sri Lanka starts building $700 million port project funded by India’s AdaniSri Lanka’s largest port began on Wednesday construction of a $700 million terminal project, partly funded by India’s Adani Group, an official said, ... Economy