Debt ratio at billionaire Adani’s green firm needs ‘watching’
A key financial metric of Adani Green Energy Ltd is flashing signs of concern as its billionaire owner takes on more debt to become a renewable energy giant.
The Gautam Adani-owned company’s debt-to-capital ratio has soared to 95.3 per cent, a level that is on the “higher side” for a private company, according to Sharon Chen, an analyst at Bloomberg Intelligence. The company’s capital expenditure plans and its funding are other factors that need a close watch, Chen added.
“We would be more comfortable looking at a 70 per cent level or up to 80 per cent for a company in a growth phase,” she said. “Adani Green warrants watching closely”.
