CreditSights discovers mistakes in Adani Group companies' debt reports.

  • Sept. 8, 2022, 12:15 p.m.

Fitch Group unit CreditSights said it had discovered calculation errors in its recent debt report on two power and transmission companies controlled by India's richest person, Gautam Adani, following a conversation with the management. 

CreditSights' report late last month labelling the conglomerate "deeply overleveraged" and highlighting other risks caused many Adani companies' shares to fall.

The debt research firm said in a report dated Sept. 7 that it had spoken with Adani Group's finance and other executives and reconciled some figures for Adani Transmission NSE 0.74 % and Adani Power NSE-0.49 %. 

"Management views that the group's leverage is at manageable levels, and that its expansion plans have not been mainly debt-funded," CreditSights said about the group that has announced deals worth billions of dollars this year alone.

For Adani Transmission, CreditSights corrected its earnings before interest, tax, and amortisation (EBITDA), or core profit, estimate to 52 billion rupees ($652.45 million) from 42 billion rupees earlier. For Adani Power, it corrected its gross debt estimate to 489 billion rupees from 582 billion rupees.

It did not give the period for the estimates.

"These corrections did not change our investment recommendations," CreditSights said, adding that it, however, did not have formal recommendations on the two power and transmission companies.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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