Adani Enterprises Ltd. Q3 FY23 Earnings Conference Call Insights

Key highlights from Adani Enterprises Ltd. (ADANIENT) Q3 FY23 Earnings Concall

Q&A Highlights:

• [00:06:26] Nikhil Abhyankar of DAM Capital enquired that after the recent events, if ADANIENT is still going ahead with the capex plan for the renewable segments. Robbie Singh CFO said that there are couple of changes taken to respond to market volatility. ADANIENT will moderate some accelerations budgeted in the capex profile and will now continue on the ordinary course of business based capex.

• [00:08:40] Nikhil Abhyankar of DAM Capital also enquired about the contribution to revenue and EBITDA from the Carmichael mine. Robbie Singh CFO answered that Carmichael mine in 3Q23 contributed INR427 crores, and the number will continue to rise on the EBITDA line.

• [00:09:34] Tanu Poddar at Mount Intra Finance queried about the reason for decline in the airport segment results. Robbie Singh CFO replied that depreciation will continue to rise as the capex numbers rise. However, EBITDA numbers are continuing to rise. So non-cash depreciation at this business will rise for some time.

• [00:12:20] Nirav Shah from GeeCee asked about the MDO volume target. Vinay Prakash Director said that in FY23, ADANIENT will be around 30 million and next year 40 million. It’s scaled down due to 1-2 projects getting delayed.

• [00:13:13] Nirav Shah from GeeCee enquired about any revised schedule in terms of commissioning of hydrogen capacities. Vinay Prakash Director said the first stage of projects was related to the integrated manufacturing, which is continuing. The company is continuing with the Adani New Industry projects for the past two years.

• [00:16:30] Dhananjay Kumar from Sunidhi Securities asked if there is any changes in the Navi Mumbai greenfield project. Robbie Singh CFO clarified that in ongoing projects there is no change and Navi Mumbai project will be completed on schedule. However, new commitments won’t be made until the volatility period is settled.

• [00:19:35] Bajrang Bafna from Sunidhi Securities asked how the capex requirements will be met for the ongoing projects in next 12 months. Robbie Singh CFO clarified that over the next 6 weeks, ADANIENT will come with a formal plan. Existing projects are fully funded and continuing.

• [00:21:29] Anshuman Ashit from ICICI asked about the volume for the nine months from the Carmichael mine. Vinay Prakash Director answered that roughly it’s about 5.5 million tons for nine months and for 3Q23 2.5 million tons.

• [00:23:21] Anshuman Ashit from ICICI asked about IRM volume target for FY24. Vinay Prakash Director replied that this year the company is going to be plus 70 million tons. And for next year, it’s expected to have the same number or little higher than that.

• [00:23:56] Anshuman Ashit from ICICI enquired if the market demand supply gap still exists and if it will continue in CY23. Vinay Prakash Director replied that it still exists and the company expects it to continue for the next year also. As of now ADANIENT is very positive in terms of demand.

• [00:24:21] Anshuman Ashit from ICICI asked if the company has done the financial closure for the Ganga Expressway project. Vinay Prakash Director clarified that all the sanctions have been completed and some precedents are pending that will be completed in the next 2-3 months.

• [00:28:50] Nikhil Abhyankar from DAM Capital asked that in solar, what’s the total capacity that’s operational right now. Robbie Singh CFO said it’s 3.5 gigawatt by June.

• [00:30:17] Nirav Shah from GeeCee enquired about MDO operations, if Parsa Kente was a one-time thing. Vinay Prakash Director answered that it was a one-time stoppage. And additionally, the way ADANIENT is doing volumes, ADANIENT expects to have a good 4Q23.