scorecardNo credit agency – in India or abroad – cut any of our ratings, says Gautam Adani at AEL AGM
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No credit agency – in India or abroad – cut any of our ratings, says Gautam Adani at AEL AGM

No credit agency – in India or abroad – cut any of our ratings, says Gautam Adani at AEL AGM
Business3 min read
  • AEL’s fund raise globally is validation of its governance and capital allocation practices. No regulatory failure asserts the boss of Adani Group.
  • Navi Mumbai Airport is on track and is preparing for operational readiness and airport transition by December 2024.
  • New businesses that are being incubated under AEL have accounted for 50% of its EBITDA in FY23

In what has been a tumultuous year for billionaire Gautam Adani, the boss of the Adani Group. Months after Adani Enterprises withdrew its follow-on public offer, Gautam Adani addressed the company’s shareholders at its Annual General Meeting, where he said that the track record spoke for itself. He said that despite the allegations made by the New York-based Hindenburg Research, “...not only did we raise several billions from international investors – but also that – no credit agency – in India or abroad – cut any of our ratings. This is the strongest validation of the belief that the investors have in your company’s governance and capital allocation practices.” All Adani Group companies were trading in the green in morning trade.

Among many other new businesses that it is incubating, the airport business is a big one. The boss of Adani Enterprises said on Monday that the Navi Mumbai Airport is on track and is preparing for operational readiness and airport transition by December 2024. Adani Airports, the new business incubated within AEL has won the mandate to modernise and operate six airports that are in Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram through a globally competitive tendering process. Adani Airports also manages the Mumbai airport and is developing the Navi Mumbai Airport. The other major project that is ready to go onstream is the copper smelter.

Adani Enterprises is seen as the incubation arm of the group and houses several capital intensive businesses under its umbrella. Through his speech, Adani reiterated the strength of the company’s balance sheet and its governance standards, which were demonstrated by the faith of global marquee investors.

Adani said, “Our balance sheet, our assets, and our operating cash flows continue to get stronger and are now healthier than ever before. The pace at which we have made acquisitions and turned them around is unmatched across the national landscape and has fuelled a significant part of our expansion. Our national and international partnerships are proof of our governance standards.”

He also highlighted the company’s success in other international markets such as Australia, Israel, Bangladesh, and Sri Lanka. Adani Enterprises during FY23 grew its operating income by 36% to Rs 57,219 crore and total income by 85% to Rs 2,62,499 crore. Despite being a capital intensive business, the company’s profit after tax grew by 82% to Rs 23,509 crore. He added, “Adani Enterprises Limited, continued to successfully demonstrate its incubation capabilities with new businesses accounting for a massive 50% of its EBITDA in FY23.”

Many of its new businesses, which are currently in the process of coming onstream, are expected to drive the flagship company’s operating income. The media foray through the acquisition of NDTV and the data centre business are ready for the next phase of growth.

In addition, Adani’s Green Power business is expected to be a game changer as computation becomes the most precious resource in the world. Adani said: “Speaking of green power, the Adani Group is set to play a critical role in India’s net zero journey. Our renewable energy business, Adani Green Energy Limited, commissioned the world’s largest hybrid solar-wind project of 2.14 GW in Rajasthan.”

The company’s operational renewable energy portfolio has grown by 49% to over 8 GW. This is the largest operational renewable portfolio in India. Our focus remains on producing the lowest cost green electron at scale – and I would like to reaffirm our target of 45 GW of renewable energy capacity by 2030.”

AEL is also building the largest hybrid renewables park in the world – right in the middle of the desert – in Khavda. It will be the most complex and ambitious project that we have ever executed. Spread over 72,000 acres, this project will be capable of generating 20 GW of green energy. And we intend to build it faster than any project in our execution history.

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