In a significant development, the Adani Group has seen a consistent decline in its net debt to Ebitda ratio over the past five years. This improvement in credit profile comes as the conglomerate's operating profit experienced significant growth.

According to an investor presentation, the group's net debt is now below 2.5 times its Ebitda for the first time, standing at 2.19 times in FY24. This achievement is particularly noteworthy considering the series of global headwinds that the company faced during this period. These headwinds include the Covid-19 pandemic, the Russia-Ukraine war, a short seller-triggered event, and the Middle East conflict.

One encouraging factor contributing to the Adani Group's credit strength is its substantial liquidity cover. Approximately 24.77% of the group's gross debt is held in the form of cash balances, providing a robust liquidity cover of over 30 months of debt servicing.

Moreover, the equity deployed in assets has crossed a significant milestone, reaching above 60% for the first time and currently standing at 62%. This indicates a higher degree of financial stability and resilience within the company.

Additionally, the Adani Group's cash reserves within its portfolio companies have reached their highest levels ever, amounting to a substantial sum of Rs 59,791 crore. This healthy cash position further enhances the conglomerate's financial flexibility and ability to navigate unforeseen challenges.

The net debt of the Adani Group in FY24 stood at Rs 1.81 lakh crore, suggesting a positive trend of decreasing debt levels. This milestone not only reflects the company's prudent financial management but also underscores its ability to adapt and thrive despite challenging global conditions.

The Adani Group's improved credit profile and strategic financial decisions position the conglomerate as a promising player in the market. As it continues to strengthen its financial fundamentals, the group seems well-equipped to navigate future uncertainties and capitalize on potential growth opportunities.