significant interest in various aspects of the Adani portfolio of companies over the past two weeks

We are pleased to share the financial results of Adani Enterprises Ltd. As you all know, there has been significant interest in various aspects of the Adani portfolio of companies over the past two weeks. Jugeshinder [Robbie] Singh, CFO, Adani Enterprise said so.

First, let me say that we are laser focused on continuing our business momentum, in this market volatility. We are confident in our internal controls, compliance and corporate governance.

Second,  we will focus on AEL’s financials, operating performance, and incubation pipeline. 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.

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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. To that, I would point out a few important facts:

• First, the subscription for the FPO closed successfully. However, as we informed the stock exchanges earlier this month, given the unprecedented market and stock price fluctuation, our board did not feel comfortable going ahead at that time. The interests of our investors being paramount.
• Second, the decision to not go ahead with the FPO will not adversely affect our 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.

Now we will address our performance for the last quarter and nine months, which reflects our strong financial foundation and momentum.

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 our incubating business – Adani New Industries Manufacturing Ecosystem, Adani Airports, Adani Road Transport, Water and AdaniConnex Data Centers.

In our Adani New Industries (ANIL) portfolio

ANIL Green Hydrogen Ecosystem has three business streams –

1. Manufacturing ecosystem – includes ingots, wafers, cells, modules, wind turbines, electrolyser and associate ancillary equipments
2. Green hydrogen generation
3. 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.

Coming to ANIL Ecosystem Operational updates –

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

In our 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 our Adani Road Transport (ARTL) portfolio:

• Received provisional COD for our 3^rd 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 our AdaniConnex Data Center portfolio:

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