Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adani Enterprises Ltd (BOM:512599, Financial) recorded its highest ever EBITDA of INR8,654 crore for the half year, marking a 47% increase year-on-year.
- The emerging core infra businesses reported a significant 85% increase in half-year EBITDA to INR5,233 crore.
- The company achieved a 138% increase in profit before tax to INR2,678 crore for the first half of FY25.
- Adani Enterprises Ltd's airport business handled approximately 53% of India's passenger movements, showcasing strong operational performance.
- The mining services portfolio saw a 32% increase in dispatches and a 65% rise in EBITDA, indicating robust growth in this segment.
Negative Points
- The company's CapEx for the first half was lower than anticipated due to extended monsoon periods, affecting project timelines.
- There is a sequential moderation in the segment EBITDA for the ANIL segment, attributed to order spillovers.
- Interest expenses are expected to rise slightly due to FX-based borrowings, despite a drop in sequential interest costs.
- The copper business is yet to contribute meaningfully to the company's financials, with significant EBITDA expected only in the last quarter of the year.
- The timeline for the completion of the Navi Mumbai airport and other projects may face delays due to monsoon-related disruptions.
Q & A Highlights
Q: Can you provide an update on the CapEx plans for the year, particularly for different segments?
A: The full-year CapEx is expected to be around INR67,000 crore. For New Industries, it's INR28,000 crore; Airports, INR16,000 crore; Roads, INR12,000 crore; Data Centers, INR5,000 crore; and other businesses, INR5,000 crore. The slower CapEx in the first half was due to monsoon seasonality, but it will ramp up in the coming months. - Jugeshinder Singh, CFO
Q: What is the status of the ANIL segment's energy projects, particularly the timeline for data integration and electrolyzer projects?
A: Manufacturing is up and running, with the exception of foundry. Electrolyzer work has started, and updates will be provided by March next year. The focus is on integrating the manufacturing ecosystem for green hydrogen production. - Jugeshinder Singh, CFO
Q: Could you elaborate on the data center business and its alignment with AI trends?
A: We are prepared for ultra-hyperscale data centers in the AI and GPU space. A comprehensive update will be provided in May next year. We are fully equipped in terms of energy supply and infrastructure for AI data centers. - Jugeshinder Singh, CFO
Q: What is the outlook for the solar panel and turbine sales?
A: Demand remains stable, and we expect capacity to double over time. The focus is on integrating the green hydrogen ecosystem, which will ramp up demand. The segment is expected to remain resilient to market shifts in the medium term. - Jugeshinder Singh, CFO
Q: Can you explain the sequential moderation in ANIL segment EBITDA?
A: The moderation is due to order spillovers from the previous quarter. The order book is tracking at 1.1 gigawatts, and we are running at capacity. The run rate should remain stable for the rest of the year. - Jugeshinder Singh, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
