Riding high on the airports business, Adani Group’s flagship Adani Enterprises Limited (AEL) has laid down a capex plan of about ₹50,000 crore to be made over the next five years, top company official informed.

Of the total capex planned, majority or approx ₹35,780 crore will go to the newly-developed airports business. “Of the six airports, for which we have bid, we are taking over three of them. And we have been successful in acquisition for Mumbai and Navi Mumbai airports. From a capex perspective, in the next five years the capex required for the six airports is approximately ₹15,000 crore, while that for Mumbai and Navi Mumbai is about ₹14,249 crore. So total capex for airport business required is approximately ₹35,780 crore over next five years,” Jugeshinder Singh, Chief Financial Officer, AEL said in a call on Wednesday after company’s financial results announcement.

Singh also indicated that a demerger for airports business from the parent AEL may not happen earlier than the end of 2022.

Apart from airports business, company looks to invest approximately ₹6,000 crore for the roads business besides minor capex requirements in data center business.

Commenting on the group’s debt of last quoted ₹1.3 lakh crore, Singh stated that about 47 per cent of the total debt has been shifted to global capital markets, whereas around 20 per cent is with foreign banks and the rest is with the domestic market. “This arrangement has benefited in two ways. More than the interest savings, this has allowed us to shift the term of the loan from three-five years to more than 7 years. None of our big businesses carry short-term refinancing risks anymore. Our tenure of debt has risen with this,” said Singh.

Back to profit

In its second quarter results, AEL returned to profit after facing Covid-19-led losses in the first quarter. The company posted standalone net profit at ₹206 core for the second quarter ended September 2020, over net loss of ₹81 crore in the previous quarter ended June 2020. Standalone revenues from operations stood at ₹2,576 crore for the quarter under review as against ₹1,992 crore in the previous quarter.

The spread of Covid-19 pandemic impacted operations and financial results of the company during the quarter ended 30th June 2020 due to lockdown and restrictions. The operations across various segments have gradually shown recovery from this impact during the quarter, AEL said in results note.

On consolidated basis, company posted net profit of ₹436 crore as against net loss of ₹66 crore in the previous quarter. Company’s revenues from operations stood at ₹9,126 crore for September quarter, which is higher from ₹5,265 crore reported in the June quarter.

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