Adani Group has made a big claim on its financial stability and development plans and said that it can move rapidly towards development even without dependence on external loans. In the data shared with investors on Monday, the group said that it has so much cash reserves and profit that it is not only able to repay its long-term loans, but can also easily complete the development plans.

Cash reserves: the basis of self-sufficiency

The Adani Group has a cash reserve of ₹55,024 crore, which is sufficient to meet all long-term loan requirements for the next 28 months. According to the group, the cash reserve will be ₹53,024 crore by September 2024, which is about 21% of the total gross loan outstanding. The company clarified that this amount gives it the ability to operate without depending on external loans.

Ten-Year Grand Plan

The Adani Group plans to invest more than ₹8 lakh crore (US$100 billion) over the next 10 years. During this period, up to ₹5.9 lakh crore will be invested from internal cash sources, making the need for external financial assistance negligible. The company's operating cash flow (FFO) has grown by 30% in the last five years, which is a proof of the group's financial stability.

Fewer loans, more assets

The group invested ₹75,227 crore in the last six months, while the total loan increased by only ₹16,882 crore. This shows that the group's focus is more on asset creation. Currently, the total asset base of Adani Group is ₹5.5 lakh crore.

Lowest borrowing cost: The group's new strength

The Adani Group has reduced the average cost of borrowing to 8.2%, the lowest in the last five years. Along with this, the long-term loan taken from domestic banks is ₹ 94,400 crore, while cash worth ₹ 53,024 crore is deposited with Indian banks.

Questions arise amid allegations of the briber.y

Adani Group founder Gautam Adani and two officials have been accused in the US of bribing an Indian official to secure a solar energy contract. The case has dealt a blow to the group's reputation and raised questions about its ability to raise foreign loans.

rating agencies watch o.ut

S&P Ratings has said that the allegations in the US indictment could impact the group's credibility and operations. However, the Adani Group has assured that its current annual cash flow is capable of repaying the entire loan in the next three years.

Attempts to reassure investors

Despite these controversies, the Adani Group has assured investors that the group's operations will continue as normal. The group's focus is on self-sufficiency and internal cash flow, which will help it avoid external pressures.

It is worth noting that the Adani Group has tried to prove that it can grow onbased on of its internal financial capacity. However, amid US allegations and doubts from global institutions, it will be interesting to see how the group materializes its plans.