A day after the promoters of Adani Group prepaid $1.1 billion loans, one of the group’s listed entities — Adani Ports and Special Economic Zone (APSEZ) — announced that it would prepay loans of up to Rs 5,000 crore by next month-end so as to improve its financial metrics.
The company is targeting an earnings before interest, tax, depreciation and amortisation (Ebitda) of around Rs 15,000 crore this financial year.
This was revealed by Karan Adani, chief executive officer (CEO) and whole-time director of APSEZ, while announcing the September-December 2022 results.
“Besides, an estimated capital expenditure of Rs 4,000-4,500 crore, we are considering total loan repayment and prepayment of around Rs 5,000 crore.
"This will significantly improve our net debt-to-Ebitda ratio and bring it closer to 2.5x by March,” Adani said.
APSEZ has a debt of Rs 39,277 crore, according to its December quarter results.
Adani added that APSEZ is well placed to achieve the upper end of its full-year revenue and Ebitda guidance for FY23.
“The company also concluded the transactions of Haifa Port Company (Israel), IOTL, ICD Tumb, Ocean Sparkle, and Gangavaram Port.
"It is progressing well on transitioning its business model to a transport utility,” Adani said.
APSEZ shares closed at Rs 553.30, up by 1.33 per cent with a total market valuation of Rs 1.19 trillion.
APSEZ’s net debt-to-Ebitda ratio is well within the guided range of 3-3.5x, while the gearing ratio is below one.
“The performance across various debt covenants has been better than the desired levels.
"We have an impeccable track record of fulfilling our debt obligations.
"Our internal accruals enable us to meet the scheduled debt repayment for any of the financial years without any major challenges,” he said.
Two other group entities, Ambuja Cements and Adani Green Energy also announced their results on Tuesday.
Ambuja Cements, acquired by the Adani promoters last year, said that to uphold the principles of good corporate governance, the management is considering appointment of independent firms or agencies.