Indian Economy: News and Discussion

Haldilal

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Ya'll Nibbiars The Adani has completed the process of 15,000 crore SBI loan. And now Adani debt this years alone has risen to almost 4,00,000 crores. It's the most debted group in India now. And now it's debt is almost 300 percent of the earnings.
 

IndianHawk

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Ya'll Nibbiars The Adani has completed the process of 15,000 crore SBI loan. And now Adani debt this years alone has risen to almost 4,00,000 crores. It's the most debted group in India now. And now it's debt is almost 300 percent of the earnings.
No big deal. So as long their profit can pay debt installments there is no issues .
 

Haldilal

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No big deal. So as long their profit can pay debt installments there is no issues .
Ya'll Nibbiars now it's now almost in the red line. It would be extremely hard to sustain further even if they achieve double digit revenue growth. This groups is smaller than L & T but debt wise is Mist DeStefano company in India.
 

Haldilal

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They have invested in Green energy and shipping let's see if it earns dividend.
Ya'll Nibbiars thats the problem it's going to take time for it to materlize. They are on a dangerous course.
 

Rajpal s

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Haryana is much better in crop diversification than punjab ,every year agri sector is growing because farmers are growing different types of cash crops other than paddy and wheat, industrialization is increasing ,dairy farming is a big contributer in rural areas ,haryana have very scarce water resources even after more than half of haryana is nearly semi arid ,yet these areas are catching with North haryana by switching to modern day agricultural practices .
 

UnderFingy

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No big deal. So as long their profit can pay debt installments there is no issues .
If the company's gearing is high, it's growth prospect decreases. They'll spend most of their income servicing the debt. Which will lead to less dividend. Which will lead to fall in Market value of shares.
Also, companies with high gearing will have difficulties raising money.
Even if the company does not make profits, the debts have to be serviced. It's not a ideal position to be in.
 

Haldilal

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If the company's gearing is high, it's growth prospect decreases. They'll spend most of their income servicing the debt. Which will lead to less dividend. Which will lead to fall in Market value of shares.
Also, companies with high gearing will have difficulties raising money.
Even if the company does not make profits, the debts have to be serviced. It's not a ideal position to be in.
Ya'll Nibbiars The adani don't have any Cash making subsidiary like Tata, Reliance, Birla, Vedanta.
 

Haldilal

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Ya'll Nibbiars While the listed Adani Subsedries debt is less then 2,00,000 crores. The unlisted have almost equal or even greater debt. If I have been the President of the Firm I would have diluted the 75 present of the controlling stake in almost every firm to 51 percent and began to list the unlisted subsidiaries. And also disinvest non strategic less profit making firms.

But after all I am not Adani and I am not a successful as the rich. So can't think like them.
 

Haldilal

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Their interest coverage is 13.5
Seems like they're managing it well enough.

Ya'll Nibbiars for now they faced similar problem in 2016. But luckily got out of it unscathed. But ofcourse had to disinvest in many subsidiaries. With the investment Adani is calling to make will surely stress the Financial health of the firms. And even with the cash reserves that are large in some firms many subsidiaries are almost out if cash.

The adani cash making reserves are listing not profits.
 
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