Adani Portfolio: Driving Growth, Sustainability, and Innovation
Newzdaddy Business Updates
Unveiling the Triumphs and Transformations of Adani’s Financial and Environmental Initiatives
Ahmedabad, February 29, 2024: With a commitment to transparency and excellence, the Adani portfolio unveils its latest financial results and Environmental, Social, and Governance (ESG) compendium. These insights not only reflect the financial robustness but also underscore the portfolio’s dedication to sustainable practices and strategic investments.
A Glance at the Financial Performance
The past year witnessed remarkable growth for the Adani portfolio, marked by a staggering 63.6% Year-on-Year (YoY) increase in quarterly Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). As of December 31, 2023, the Trailing Twelve-Month (TTM) EBITDA soared to INR 78,823 crore (USD 9.5 Bn), signifying a 2.5x increase from FY21 and a substantial 37.8% rise from FY23.
Core Infrastructure Fueling Growth
The backbone of this growth lies in the core infrastructure platform, which contributed INR 66,208 crore (USD 8 Bn) to the TTM EBITDA, marking a commendable 35.4% YoY surge. This robust financial performance has garnered positive outlook upgrades from renowned rating agencies such as S&P Global and Moody’s.
Conservative Leverage and Financial Stability
Despite the exponential growth, the Adani portfolio remains conservatively leveraged, boasting a Net Debt to EBITDA ratio as low as 2.5x as of September 2023. Such financial prudence sets the stage for further improvements in financial metrics, especially with the higher TTM EBITDA trajectory.
Charting a Path Towards Green Investments
A testament to its commitment to sustainability, the Adani portfolio has pledged USD 100 Bn in investments, primarily directed toward green energy transition. This commitment underscores the portfolio’s determination to contribute meaningfully to environmental preservation and sustainable development.
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Detailed Financial Performance Analysis
Breaking down the financial performance, the utility sector recorded substantial growth, with a 68.19% increase in Q3 FY24 EBITDA compared to the previous year. Similarly, the transport sector witnessed a 39.41% YoY growth, while Adani Enterprise Limited’s infrastructure businesses surged by an impressive 124.35%.
Exploring Business Highlights
In the domain of infrastructure, Adani Enterprises (AEL) has witnessed remarkable momentum across emerging sectors such as green hydrogen ecosystems, airports, and roads. The airports segment, with a 23% YoY increase in passenger movement, showcases promising growth prospects, with the Navi Mumbai airport slated to commence operations by December 2024.
Renewable Energy Driving Innovation
Adani Green Energy Limited (AGEL) stands at the forefront of renewable energy initiatives, with operational capacity reaching 9,029 MW. AGEL’s global recognition as one of the top three solar PV developers underscores its commitment to sustainability and innovation.
ESG Commitments and Achievements
Adani’s Environmental, Social, and Governance (ESG) initiatives have garnered significant recognition, with AGEL securing the top spot in ESG assessment for the second consecutive year. Furthermore, all Adani portfolio companies have achieved notable ratings in the CDP ratings for 2023, reflecting their dedication to the highest standards of ESG practices.
Embracing Innovation and Sustainability
The Adani portfolio’s journey exemplifies a harmonious blend of financial growth and environmental stewardship. With a steadfast commitment to innovation and sustainability, Adani continues to set new benchmarks in the realms of finance and environmental responsibility.
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