The company’s interest service coverage ratio, a measure of its operating profit versus its interest costs, has improved to 3.09 at the end of FY23 compared with 2.41 a year ago, as per the company’s own calculations.
Mumbai: Adani Group flagship company Adani Enterprises Ltd’s (AEL) ability to service its debt obligations has improved significantly as of March 31, 2023, compared to last year as borrowings have come down while earnings have gone up.
The company’s interest service coverage ratio, a measure of its operating profit versus its interest costs, has improved to 3.09 at the end of FY23 compared with 2.41 a year ago, as per the company’s own calculations.
This, after the company’s gross debt came down by 7% to ₹38,320 crore, of which ₹10,544 crore is founder’s debt while the rest is external debt.
Earnings before interest, tax, depreciation and amortisation (ebitda) more than doubled year-on-year to ₹10,025 crore, data from the company’s investor presentation show.
The company’s cash position, including bank balances, has improved to ₹5,374 crore, 37% higher than a year earlier.
“Our focus on maintaining credit quality of AEL is demonstrated in these financial numbers,” said Jugeshinder Singh, CFO of Adani Group, during a post-earnings investor call.
“As a result, our net debt-to-ebitda ratio has more than halved to 2.2 times from 5.2 times during the last year,” he said.
