Adani Enterprises Limited — Q3 FY24
Adani Enterprises reported a strong Q3 FY24, with nine-month consolidated income of INR 77,702 crore and EBITDA up 58% YoY to INR 9,592 crore.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
Medium priority
Impact of events like World Cup on airport aero and non-aero revenue.
Asked by Prateek Kumar, Jefferies
Management declined to provide any event-specific impact, instead focusing on long-term growth.
reframed to long-termno specific numbers given
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Question
how have you seen like... In last quarter was particularly benefiting from various events, including World Cup and some of the other events which happened also in Gujarat during the business events. So how is that like benefiting the airports in respective cities and particularly both on aero side in terms of passenger and non-aero side also, in terms of spend per passenger, is there any uptick which is seen or on these respective airports?
Robbie Singh, CFO
We do not account for any events as a special numbers, neither do we track those things, because we don't believe fundamentally that's the correct way to look at our business. It's a consumer business, and therefore, our objective always remains on the long term growth and rate of both the PAX and the non-PAX.
Partial answer
High priority
Passenger traffic growth outlook and Navi Mumbai airport commissioning impact.
Asked by Prateek Kumar, Jefferies
Management avoided giving next-year traffic growth, instead providing a 10-year view.
no near-term guidancedeferred to long-term outlook
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Question
Also, the traffic growth, how do you see, like, traffic growth for the next year? Like, passenger traffic growth, like domestic numbers have seen some moderation, like what is reported by DGCA. How do you see the traffic growth going forward in the business for the next year? And, how do we see, like, the commissioning of Navi Mumbai airport?
Robbie Singh, CFO
we don't look at traffic numbers aside from, you know, obviously listing and reporting requirements on a yearly basis. ... we believe that that number will rise to at least 0.6 or higher by 2032, 2033, in 10, the next 10-year period. It can vary, but overall, that signifies a 6X jump in the overall passenger traffic of India over this period.
Partial answer
High priority
Compensation from AAI force majeure order for Mumbai Airport.
Asked by Prateek Kumar, Jefferies
Management gave the amount but deferred on the recovery timeline.
timing not provided
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Question
So there was this recent favorable order win from AAI regarding force majeure event during COVID at Mumbai Airport. What is the compensation do we expect as a reimbursement, and when do we expect this payment with us, like, relating to this order?
Robbie Singh, CFO
So effectively speaking, the order, what we had already provided for, other than that number, we will receive 1,238, so INR 1,238 crore. In terms, that's a recoverable. And we in terms of the recovery period, et cetera, we will go through later once that is clear.
Answered
High priority
Reason for high coal trading EBITDA per ton this quarter.
Asked by Mohit Kumar, ICICI Securities
Management explained the reason for higher margins without withholding key details.
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Question
So first on the coal trading, so the numbers are very, very high in this particular quarter. Can you please comment on this? And because the EBITDA per ton, I think, is around INR 700 rupee per ton compared to what you achieved in the last few, I think, last 10, 12 quarters, numbers are below INR 500 rupee per ton. Is there something extraordinary there?
Robbie Singh, CFO
In fact, it had happened because of our some decision which went well over and above our servicing this industry. ... Since market was correcting and we were holding the orders, we got benefited because of our low sourcing cost, the purchase cost, which is getting reflected in the results.
Partial answer
Medium priority
Carmichael mines EBITDA for the quarter.
Asked by Mohit Kumar, ICICI Securities
Management initially didn't have the number, then gave a nine-month figure instead of quarterly.
quarterly number not providedonly nine-month figure given
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Question
My second question on Carmichael mines. Is it possible to list the details of the revenue and EBITDA for this particular quarter? Of course, I have the EBIT number, which is INR 274 crore. If you can just provide the EBITDA number, it will helpful.
Robbie Singh, CFO
I'm not having that number handy with me. ... About INR 1,020 crore is the number. ... For nine months.
Answered
High priority
Coal mining ramp-up issues and FY2025 target.
Asked by Mohit Kumar, ICICI Securities
Management confirmed the target and explained the delay without evasion.
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Question
On the coal mining front, I think we're targeting 40 million tons, 40 million tons, a few years back, and I think we're still struggling at 28 million ton. Is there any issue with the ramping of the coal product, coal mining, and what is expected at run rate, which you can achieve in FY 2025?
Robbie Singh, CFO
So we are on our target of achieving 40 million tons in FY 2025. I'll not say we are struggling. We were expecting some approvals to come in time, which, you know, when we speak about the mining in India, it's a very lengthy and a complicated process... But now we have all the permission, and I'm sure that, I'm confident that target of 40 million in FY 2025 is going to be likely there.
Partial answer
Medium priority
Solar manufacturing capacity utilization and export details.
Asked by Mohit Kumar, ICICI Securities
Management gave export MW but did not clarify if 100% utilization is expected in FY2025.
export MW given but not percentage of salescapacity utilization not explicitly confirmed
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Question
On the solar manufacturing, I think, we are already at 4 GW, if I'm not wrong, and our production has been, last year produced 1.2 GW, and this year we may end up 2.4 GW. Can you see the run rate going to 4 GW, 100% capacity utilized in FY 2025? And if you can comment something on the markets, are we exporting? How much export in this 638 MW which is sold in this particular quarter?
Robbie Singh, CFO
Yeah, we, we expect to broadly achieve, production run rate reflective of the 4 GW capacity. And the exports, in terms of, the module sales, are now out, out of the INR 1,882 crore, exports, megawatt, exports are 1,232 MW.
Answered
High priority
Reason for improved IRM profit margins.
Asked by Brett Knoblauch, Cantor Fitzgerald
Management clearly explained the reason for margin improvement.
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Question
I guess my first question was really on some of the established business profit margins. I think if you're looking at those kind of profit before tax margins, especially in IRM, it remained very strong for, you know, another quarter. Could you maybe help us understand the reasons for that improvement relative to history, where it's always kind of been a 2%-3% margin business?
Vinay Prakash, Director and CEO
In IRM business, you're basically importing coal from various, countries... The international market, which has gone up to $400 on, Newcastle, which is, which is a standard product, has come down drastically in last one year to now at $120 level, level. We were holding, certain orders in hand, and seeing that the market is getting corrected, we hold our purchase back, and, we delayed the purchase. This is which we got extra margin over the normal margin.
Answered
High priority
Ramp-up timeline for solar and wind manufacturing and electrolyzer commercialization.
Asked by Brett Knoblauch, Cantor Fitzgerald
Management provided clear timelines for each segment.
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Question
on the solar manufacturing and wind manufacturing capacity, I guess, how quickly do you expect to ramp up the solar manufacturing capacity over the next year or two year? And for the electrolyzer, am I right in thinking that that would be commercialized, I guess, within fiscal year 2026?
Robbie Singh, CFO
I think on the solar modules, we are pretty much on track for the full capacity of 4 GW over the next 12 months. And on electrolyzer, yes, you are correct. It's 2026. And the Windtech is continuing, and we are pretty much on the 1.5 GW, and it's product producing at that level already.
Answered
High priority
Overall CapEx plan for this year and next year across segments.
Asked by Dhananjay Mishra, Sunidhi Securities
Management gave specific numbers and breakdown.
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Question
Sir, what is the overall CapEx plan for this year, or what will be the next year across the segment?
Robbie Singh, CFO
I think for this year, the total CapEx plan across AEL's ecosystem will be approximately INR 33,600 crore, and we expect next year for it to jump to approximately INR 92,000 crore. The jump in this INR 60,000 crore jump is driven by a INR 50,000-odd crore jump in Adani New Industries, and a INR 10,000 crore jump in airports.
Answered
High priority
How airport portfolio can achieve 5-6x growth given capacity constraints.
Asked by Bharat Shah, ASK Investment Managers
Management explained how capacity expansion and privatization will drive growth.
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Question
it's not easy to understand how our airport portfolio can achieve that five or six time kind of growth in the decade, which is upcoming.
Robbie Singh, CFO
See, our own airport CapEx plan, as we've outlined before, it just will take our capacity to 250 million. So straight off, with 3X growth will happen in the existing airports themselves. And then, the, as the further privatization takes place across the airport portfolio, that will add to this growth.
Answered
High priority
Impact of potential reduction in coal imports on IRM business.
Asked by Bharat Shah, ASK Investment Managers
Management gave a detailed explanation of why coal imports will persist.
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Question
The policy thrust appears to be that at some stage, imported coal may look to be a thing of the past or materially a thing of the past. How does it affect our IRM business, if this were to transpire?
Vinay Prakash, Director and CEO
So when we think about the IRM business, I think first of all, we need to understand that we are in this business for last now 25 years. ... even though the target has been set to make import zero long back, but on an actual basis, on a practical basis, it is not going to be zero anytime in the future also, for two reasons.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Carmichael mines nine-month EBITDA INR 1,020 crore | ₹1,020 cr | ₹9,592 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.