In a new note, CreditSights softened its tone regarding its analysis of Adani Group by acknowledging some calculation errors. It corrected the EBITDA estimate for Adani Transmission (ATL) and revised its gross and net leverage ratios to 5.8x and 5.7x based on EBITDA. In the earlier report, it had calculated the gross and net leverage ratios at 7.1x. Similarly, it revised its gross debt estimate for Adani Power (APL) and revised its gross and net leverage ratios to 5.1x and 5x from the earlier 5.9% for both. CreditSights spoke to Adani Group’s CFO and came up with the revisions, after the Indian conglomerate clarified its numbers earlier this week.
However, CreditSights said that the revisions did not change its view on the company adding that the group “has an elevated leverage at present, and is likely to remain so in the coming years”. Adani Ports’ 3.828% 2032s traded lower by 0.2 points to 80.1, yielding 6.72%.
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