New Delhi: Adani Group plans to invest more than Rs 1.2 lakh crore (about 14 billion US dollars) across its portfolio companies, ranging from ports to energy, airports, commodities, cement, and media in the Financial Year beginning April 1, 2024, as it doubles down on its USD 100 billion investment guidance over the next 7-10 years to grow its businesses.
The projected capital expenditure or capex for the 2024-25 Fiscal Year (April 2024 to March 2025) is 40% higher than what the portfolio is estimated to have incurred in FY24.
The Adani Group reported executing the core of its business under the concept of ‘green transition’. The Adani Group added that it will allocate more than 70% of this USD 100 billion to its green businesses, including renewable power, green hydrogen, green evacuation transmission lines, etc. The conglomerate is building the world’s largest renewable park at Khavda, Gujarat, spanning over 530+ square km—an area five times the size of the city of Paris.
This investment is expected to play a significant role in transforming Bharath’s energy and transportation landscape. A large portion of the total investments is allocated for the expansion and development of its fast-growing airports and ports in the country. With a portfolio boasting 8 airports, including the upcoming Navi Mumbai airport, and 14 domestic ports, the Adani Group aims to further solidify its presence in these sectors.
In the December quarter, the Adani Group announced a record-breaking 63.6% year-on-year growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), reaching an all-time high of USD 9.5 billion (INR 78,823 crore) for the twelve-month period ending in 2023. With a net debt to EBITDA ratio of 2.5x at the end of September, which is expected to further reduce by the end of FY24, due to strong growth.
According to sources, with the higher investments, it is setting the stage for exponential growth in the coming years. In a media statement , the Adani Group said increasing cash flows and its strong credit profile have set the stage for ‘Green Investment.’ Several sources report that this improves several employment opportunities throughout the country, leading to sustainable development.
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