Snowcap Research publishes critical report on Adani Green: What it said
Hindustan TimesActivist investment firm Snowcap Research published a report on Adani Green Energy Ltd focussing on findings related to operational performance, project returns, funding concerns, run-rate EBITDA and related party merchant power sales. The advisory firm said in its analysis that ambitious generation predictions and concealed accounting add-backs likely inflated Adani Green's crucial Run-rate EBITDA metric. Not only is this seemingly inconsistent with Adani Green’s reporting of its headline EBITDA number, we believe it is nonsense to include one-off items and non-cash accounting gains in a “run-rate" metric". The research said that Adani Green's high debt payment load and declining project returns resulted in minimal free cash flow in recent months, adding, “By our own modelling, we estimate Adani Green can meet just 50% of its 50GW target funding requirement by 2030 – even with the announced equity injection from promoters."
History of this topic
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