Companies

Covid-19 pushes back Adani Enterprises’ capex plans by six months

Our Bureau Ahmedabad | Updated on May 06, 2020 Published on May 06, 2020

Adani Enterprises Limited (AEL) on Wednesday informed that the Covid-19-induced business disruptions have pushed back its capex decisions by six months without much change in the quantum of investments.

In a media analyst call after announcing the financial results on Wednesday, Jugeshinder Singh, Chief Financial Officer, AEL, informed that even in the prevailing Covid-19 outbreak scenario, the company looks to have a capex plan of approx ₹10,000 crore that includes investments for airports division and mining business.

Giving an overview on the solar business, Singh stated that disruptions triggered by coronavirus may impact solar business in short term. This will be in terms of order and business development. “We don’t see a long term or medium term shift in solar business,” he added.

For the Adani Group as a whole, overall debt stood at approx ₹1.3 lakh crore and the group is under a fast deleveraging mode. “We are deleveraging very fast. Our debt-to-EBITDA multiple in 2013 was eight times. Now in 2020, our EBITDA is about ₹30,000 crore and the debt-to-EBITDA multiple is at 4.2 times,” he said.

For the fourth quarter ended March 31, 2020, its consolidated total income rose 2 per cent to ₹13,698 crore from ₹13,473 crore in the corresponding quarter last year. The PAT attributable to owners for Q4 FY 20 was ₹61 crore against ₹283 crore in Q4 FY 19.

Commenting on the results, Gautam Adani, Chairman Adani Group, said, “With the Covid-19 pandemic has brought things to a halt, we at Adani will persistently support our fellow Indians through these testing times. We aim to emerge stronger once situations normalise. The emphasis will be on continued incubation of future businesses and create value for our stakeholders in the long term.”

Published on May 06, 2020
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