Laser focused on continuing business momentum in the market volatility: Jugeshinder (Robbie) Singh, CFO Adani Enterprises

Ahmedabad : : Jugeshinder [Robbie] Singh, CFO, Adani Enterprises shared the financial results stating that the company is laser focused on continuing its business momentum in the market volatility and the internal controls, compliance, and corporate governance.

According to Singh, AEL has a proven 25-year track record of deploying capital in a disciplined way to create value for shareholders. During this time, we have incubated leaders in sectors that are vital to the continued growth and economic prosperity of India – companies like Adani Ports, Adani Transmission, Adani Green Energy, Adani Total Gas and Adani Wilmar.

AEL’s current portfolio of businesses – both established and incubating – are spread across core verticals in energy & utility, transport & logistics, direct to consumer and primary industries.

AEL is making significant progress in our incubation pipeline comprising Adani New Industries; Green Hydrogen Ecosystem and full-service Data Center – Adani Connex; Adani Airports Holding and Adani Road Transport which together now account for over 33% of AEL’s EBITDA.

“We would like to clarify and address the matter of AEL FPO. As you are aware, we have not gone ahead with the FPO, and thus the speculation around the possible impact on our incubation strategy” said Singh.

Drawing few important facts on the FPO, Singh stated that the subscription for the FPO closed successfully. However, AEL informed the stock exchanges earlier this month, given the unprecedented market and stock price fluctuation, the board did not feel comfortable going ahead at that time. The interests of investors being paramount.

The decision to not go ahead with the FPO will not adversely affect AEL’s existing operations and future plans.

“We have an impeccable track record of responsibly managing our balance sheet. We are undisputed leaders in executing complex infrastructure projects. Whilst in the initial stages of a new project, our leverage tends to increase the nature of our infrastructure assets generating strong cashflow results in rapid deleveraging. AEL has demonstrated this effect over the past nearly 3 decades.”

“In short, our balance sheet is very healthy. We have industry-leading development capabilities, strong corporate governance, secure assets and strong cashflows. Once the current market stabilizes, we will review our capital market strategy, but rest assured we are confident in our continued ability to deliver business that provide superior returns to shareholders.”

Beginning with consolidated financial performance in Q3 FY 23, the Total Income increased by 42% to Rs. 26,951 crore, EBIDTA increased by 101% to Rs. 1,968 crore and PAT increased to Rs. 820 crore. The cash accrual (PAT + Depreciation) during the quarter is Rs. 1412 crore.

A brief operating update of incubating business – Adani New Industries Manufacturing Ecosystem, Adani Airports, Adani Road Transport, Water and AdaniConnex Data Centers.

In Adani New Industries (ANIL) portfolio

ANIL Green Hydrogen Ecosystem has three business streams –

Manufacturing ecosystem – includes ingots, wafers, cells, modules, wind turbines, electrolyser and associate ancillary equipments
Green hydrogen generation
Downstream products – ammonia, urea, methanol etc.

During the quarter, Module line was operational for 2.0 GW plant and COD for Cell line is expected by Mar’23. Further the existing 1.5 GW capacity plant is being upgraded to 2.0 GW with TopCon Cell Technology. For which COD expected by Jun’23. With this total cell and module capacity will be 4.0 GW.

In wind manufacturing, Nacelle Facility operational, blade manufacturing and commercial assemblies shall start from Q1 FY24 and production will commence subsequently.

ANIL Ecosystem Operational updates –

Sales of Modules during Q3 FY23 increased by 63% to 430 MW

In Adani Airports Holding (AAHL) portfolio:

Passenger’s movements increased by 40% to 20.3 Mn
Air Traffic Movement increased by 21% to 142,000

In Adani Road Transport (ARTL) portfolio:

Received provisional COD for our 3rd road project, delivering consistency in timely completion of projects. With this, we now have 4 operational projects in HAM and TOT.
Construction activities on schedule for all other HAM and BOT projects

In AdaniConnex Data Center portfolio:

Our various development projects at Chennai, Noida, Hyderabad and Mumbai are on schedule.

ESG Highlights:

In this journey of value creation, AEL has always embedded ESG in its business philosophy. I am happy to inform you all that AEL embarked its maiden CDP disclosure for FY 2022 and was rated as ‘B’ for taking coordinated action on climate issues. This is higher than the Asia regional average of C, and higher than the Intermodal transport & logistics sector average of C. AEL is amongst 37% of companies that reached Management level in its Activity Group, reflecting AEL’s commitment towards environment & sustainability.

In closing AEL is ranked 7 out of 135 of its global peers in the DJSI ranking, a global rank of top 10%.