Adani Group says its portfolio posted highest ever EBITDA growth in H1FY24, crosses Rs 43,000 Cr

AHMEDABAD : Adani Group on Monday said its portfolio delivered highest ever EBITDA growth in H1FY24 and crossed Rs 43,000 crore-mark. The Gautam Adani-led conglomerate released its half yearly financial performance update on Monday.

“The integrated business portfolio, which focuses on fortifying India’s infrastructure development, has delivered a strong performance across all its businesses. The substantial cash flows from these businesses lay the foundation for sustained future growth,” said the Adani Group.

“The incubation continues to be a success story with Airports, Green Hydrogen and other incubating assets emerging strongly and now contributing near 8% of the portfolio EBITDA,” said Jugeshinder (Robbie) Singh, Group CFO. “The portfolio has withstood the test of time and has a track record of tremendous growth inspite of macroeconomic and other challenges.”

In the first half of fiscal year 2024, the Adani portfolio of companies demonstrated robust financial performance while further enhancing its strong credit profile, said the conglomerate.

The portfolio level EBITDA stood at Rs 43,688 crore ($5.3 billion), up 47% YoY. This growth outpaced the portfolio’s historical five-year Compound Annual Growth Rate (CAGR) trajectory of 26.3%, said Adani Group.

“It is noteworthy that H1 FY24 EBITDA surpassed the full-year EBITDA of FY22. Additionally, Trailing Twelve Month EBITDA is notably close to three times FY19 EBITDA,” it added.

Adani Group said the growth was driven by an impressive performance of the core infrastructure businesses, which grew by 52% YoY to Rs 37,379 crore ($4.5 Bn), contributing 86% of the total EBITDA. These businesses include the utility (Adani Green Energy, Adani Energy Solutions, Adani Power and Adani Total Gas), transport (Adani Ports & SEZ) and other infrastructure businesses (those being incubated by Adani Enterprises – green hydrogen integrated manufacturing, airports and roads). The expansion reflects the portfolio’s focused investment in infrastructure development, which is yielding significant results. “Adani Enterprises’ strategic initiatives to bolster its infrastructure portfolio are in line with the rising demand for sustainable and robust infrastructure in India and beyond,” said Adani Group.

The incubation under Adani Enterprises Ltd continues to progress well, with the assets contributing 8% of the overall EBITDA, said Adani Group. The emerging business of the low-cost green hydrogen integrated manufacturing delivered 212% YoY revenue growth and 10x EBITDA growth. The airports business under Adani Enterprises witnessed a 29% YoY growth in passengers in the first half of FY24, thus resulting in revenue growth of 42%.

The cement business (Ambuja & ACC) is consistently seeing cost and operational synergy benefits of the portfolio. For instance, the H1FY24 EBITDA for this business more than doubled year-on-year basis on a single digit volume growth, said the conglomerate.