Adani Group to invest US$ 14 b in FY25 across all sectors and markets

Thursday, 21 March 2024 00:30 - - {{hitsCtrl.values.hits}}

Adani Group Chairman Gautam Adani

Adani Group said this week it plans to invest about $14 billion across its portfolio companies that range from ports to energy, airports, commodities, cement, and media in the fiscal year starting 1 April, as it doubles down on its $100 billion investment guidance over the next 7-10 years to grow businesses, sources said.

In the final quarter of 2023, Adani’s portfolio reported record EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) growth of 63.6%, taking its 12-month EBITDA to an all-time high of $9.5 billion in 2023.

The projected capital expenditure or capex for the 2024-25 (April 2024 to March 2025) fiscal is 40% higher than what the portfolio is estimated to have incurred in FY24. According to analysts, the portfolio is estimated to have incurred a capex of around $10 billion in FY24 which ends on March 31.

Sources said these investments will set the stage for exponential growth. The group had previously guided a $100 billion capex over the next 7-10 years. Most of this investment will go into the group’s fast-growing businesses such as renewable energy in South Asia, including Sri Lanka.

As much as 70% of the planned capex will go into its green portfolio—primarily renewable power, green hydrogen, and green evacuation. Of the remaining 30%, the majority will be spent on airports and port businesses.

Increasing cash flows from fast-growing profits have set the stage for mega-scale ‘Green Investment’, sources said.