Adani Enterprises Limited’s (AEL) decision to expand its airports business is paying off. In the past fiscal, Adani’s airport business was the second highest revenue generator for the conglomerate. 

For the Adani Group, its integrated resources management (IRM), solar and mining businesses are “established businesses” while its airports business is “developing”. While its IRM business continues to be the highest contributor of revenues and profits, in the past one year, the group has expanded its airports business multi-fold leading to robust revenue generation. 

Adani’s IRM business posted more that 100 per cent growth for both Q4 and full year FY22 with revenue of ₹17,857.07 crore and ₹48,871.27 crore, respectively. 

Adani has managed to acquire management rights for at least eight airports including four international airports and four regional airports. Together, these airports generated revenue of ₹1,165.58 crore in Q4 of FY22 against ₹89.80 crore in Q4 of FY21. 

The airport business’ net profit stood at ₹75.37 crore for the Q4 FY22 compared to a loss of ₹87.78 crore in the same period last year. 

Adani Airports Holdings’ total assets stood at ₹30,937.47 crore as of Q4 FY22 compared to ₹2,062.23 in the same period last year. However, liabilities increased multi-fold to ₹8,266 .30 crore for the quarter compared to ₹928.16 crore in the same time last year.

In FY22, Adani Airports managed a financial closure for the greenfield Navi Mumbai International Airport project with State Bank of India (SBI) for an entire debt of ₹12,770 crore.

New business

Speaking about the growth that its new businesses have contributed, Gautam Adani, Chairman of the Adani Group, said: “AEL’s existing business have strengthened their performance and we see exciting journey ahead for our new businesses like networked airport eco-systems, road and water infrastructure and green data centers.”

The company said that out of theeight airports- Mumbai, Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru, Guwahati and Navi Mumbai airport- at least seven are operational. Together theairports handled 36.9 million passengers in FY22 amounting to at least 20 per cent of the overall passenger traffic in India.

It said while the passenger traffic in Q4 of FY22 was muted due to rising Covid cases in January, the company is bullish that it is set “to dominate the airports space with 300 million + consumer base leveraging network effect and consumer mindset”

The company said the next-generation of its strategic business investments are centered around airport management and roads among others “which has significant scope for value unlocking.”

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