Fitch's voice over Adani Group, said - there was a mistake in the calculation in the report

Good news has come for Adani Group. Recently, Fitch Group’s Creditsites raised many questions about Adani Group. But now the unit of this international rating agency has changed its old stand regarding the loan structure of Adani Group. The agency has corrected its earlier statement that there was a mistake in the calculation. Let us tell you, Creditsites had said in its first report that the debt on Adani Group is high. And she may fall into the debt trap. After the Fitch report, the Adani Group issued a statement saying that more than half of the public sector debt has been repaid.

What’s in Fitch’s new report?

Regarding the company of Gautam Adani, the third richest person in the world, Fitch has said that the debt on one unit is high, due to which future acquisitions are going to hurt the credit profile. Apart from this, Creditsites has also corrected the profit and loan figures of Adani Transmission Limited and Adani Power Limited in view of the calculation error. Let us tell you, after the old report of Fitch, there was a huge fall in the shares of Adani Group.

What was in the first Fitch report?

Aggressive expansion by the Adani Group has put pressure on its credit metrics and cash flow, according to the first report by CreditSights. This could put the group in a debt trap. Referring to the funds received from the promoters of the Adani group, the agency had said that we see very little evidence of promoters’ equity capital injection into group companies.

How much debt is left?

Looking at the cash available with the Adani Group, it had a gross debt of Rs 1.88 lakh crore and a net debt of Rs 1.61 lakh crore in March 2022. The group had said that the proportion of loans taken by its companies from public banks was 55 per cent in the financial year 2015-16, but it has come down to just 21 per cent of the total debt in the financial year 2021-22.