Ladies and gentlemen, good day and welcome to the Q3 FY 2023 Earnings Call for Adani Enterprises Limited, hosted by DAM Capital. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing star then zero on your touchtone phones. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from DAM Capital. Thank you, and over to you, sir. Thank you, Darwin. On behalf of DAM Capital, I welcome you all to the Q3 FY 2023 Earnings Call for Adani Enterprises. We have with us from the management team, Mr. Vinay Prakash, Director, Adani Enterprises, and CEO of Natural Resources. We also have Mr. Robbie Singh, CFO, Adani Enterprises, Mr. Saurabh Shah, Finance Controller, and Mr. Manan Vakharia, Investor Relations. We'll start with a brief opening remarks, after which we'll follow it by Q&A. Thank you, and over to you, sir. Hi, this is Robbie here. Thank you for joining the call. Just as a brief for the last 9 months, then I'll touch on the quarter. For the last nine months, I'm very pleased to inform you Adani Enterprises crossed INR 1 lakh crore in terms of total revenue. EBITDA for the first time crossed INR 6,000 crore. PAT net also crossed INR 1,700 crore for the nine months. On the key metrics, interest coverage has comfortably averaged for the last four years over 2.5 times. Debt cover ratio is over two for the first time. Net debt to EBITDA now has fallen below 4 times to the net debt to EBITDA. Net debt to equity is now stable at less than 0.8%-0.9%, and net debt to assets are comfortable at 0.2%. For the quarter, Adani Enterprises has had a stellar quarter this third quarter 2023. For the first time, we've had a significant contribution from our newly incubating assets, which now stand at 33%, approximately 33%. It's little higher than 33% of our EBITDA. For the quarter, the revenue stood at INR 26,950 crores and the EBITDA at INR 1,968 crores. Of this EBITDA, INR 906 crores came from the new incubating businesses. These new incubating businesses include green hydrogen, Adani Airports, roads, and data center. Our traditional businesses of mining services and trading have consistently been good performer for the last decade. They continue to be excellent performers as of this quarter as well. The pleasing aspect of this quarter has been that the EBITDA increase at airports, driven by passenger increase of 40% and air traffic movement increase of over 20%. We're also pleased to inform you that our 2 GW of cell module, cell and module line is operating in the Adani New Industries Limited. Our 5.2 MW onshore wind turbine is undergoing certification, which we expect it will complete in June. In relation to overall operating highlights, sales volume from our Adani New Industries Limited are up 64%. IRM trading and sales volumes are up high single digits. Passenger movement at airport up 40%. Air traffic movement up 21%. We've co-completed close to 37 road kilometers, INR 37 lakh road kilometers, lane kilometers. In summary, we did have been. Last two weeks have been interesting, but the key highlight, as always, has been stellar performance of Adani Enterprises and its incubating businesses. With this, I will open for Q&A. Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead. Thank you, sir. Thanks for the opportunity, and congrats on a good set of numbers. Sir, are we after the recent events, are we still going ahead with the CapEx plan for the renewable segment? When do you expect the commissioning of 10 gigawatt of solar cell and module capacity? You see with the recent plan, there are a couple of changes, a couple of measures we will take just to respond to the market volatility. Overall, our plans for airports, for the green hydrogen business, which is a core of our infrastructure. I will highlight to you another point when I say this. See, Now that we have all of our results are out, I can share with you. See, our core portfolio, which is the infra portfolio, is about 81% of our EBITDA, which is, and it has grown 46% compared to the last 9 months of 2022 versus 2023. That EBITDA, the core infra portfolio EBITDA is close to INR 33,000 crore now. As I mentioned earlier, our mining services and mining business is robust and stable and contributes about 9%. Cement is now contributing about 7%. If you look at our core cash flow generating assets, they are exactly the same as before. Our investments in the core infrastructure sector, which includes energy and utilities, which is green hydrogen, and the transport and logistics portfolio will continue as planned. However, given the current volatility, we will moderate the certain accelerations that we had budgeted in the CapEx profile. We will now continue on the ordinary course of business-based CapEx. To that extent, yes, there is a change. Overall, our core infra and utility CapEx programs will continue to the extent of the, as we've always done, to the extent of the free cash flow available in those businesses. Understood, sir. Just a second question. What are the contribution in terms of revenue and EBITDA from the Carmichael Mine? Carmichael Mine, this quarter contributed INR 427 crore, and that number will continue to rise on the EBITDA. On the EBITDA? Yeah, on the EBITDA line. EBITDA. Okay. Thank you, sir. I'll join back in the queue. Thank you. Participants who wish to ask a question may please press star and one at this time. Ladies and gentlemen, to ask a question, you may press star and one. The next question is from the line of Tanu Poddar from Mount Intra Finance Private Limited. Please go ahead. My question is regarding the airport segment. I wanted to understand the decline in the segment results, because considering the high operating leverage in this particular segment, we would expect the EBIT to rise instead of fall. I just wanted to understand why it has fallen and some details regarding the concession fees for the Mumbai Airport regarding these two things. I think a bit more realistic way to look at would be that the depreciation levels will continue to rise as our CapEx numbers rise. Overall, the EBITDA numbers are continuing to rise. The non-cash depreciation at the airport business will rise for some times. In relation to the fee paid calculations for the quarter and for the year, we will share with you, Saurabh and team will share with you post this call, to the actual fees paid to AAI, because I don't want to quote a rough number. I would like to just give you the exact number. I will, we will put that in writing. All right. Thank you. That is all from my side. Thank you. We have the next question from the line of Nirav Shah from GC Investments. Please go ahead. Yeah, thanks for the opportunity, sir. A few questions and one clarification. You mentioned EBITDA from Carmichael Mine at INR 422 crores. I mean, For the quarter, yeah. That is part of. It doesn't form part of any of the segments that we have reported, either ICM or MDO. It's over and above that. It's part of the natural resources. Saurav, in terms of segmental reporting, we'll bring out the Carmichael Mine from next year onwards as a segment. Right now it does not fall above 10%, which is the criteria for segmental results. Segmental. Okay. Okay, got it. because, if I add up the EBITDA reported from the segments, I mean, coal trading plus, MDO, solar and, airports. We are already getting a INR 1,600 crore of number. I'll take it with Saurabh offline on that, on this. Sure. Also just regarding the MDO volumes, I mean, we had given a target of 40 million tons and 50 million tons this year and next year. We largely stick around that same target. Yeah. Vinay, please. In fact, I think this year, we are going to be around INR 30 million. Next year is going to be INR 40 million. Okay. We've scaled down by 10 million tons, we can in the plan. Yeah. One or two projects have got delayed, because of which, the volumes are lower, but we can always recoup it in next one or two years' time. Got it. On the commercial mining front, the first mine, Viroli, should be starting in FY 2024. Yes. Starting in 2024. Sir, last question is on the green hydrogen projects. I mean, we have read comments from the Total management that as of now, they haven't signed. Any revised schedule in terms of commissioning of hydrogen capacities, green hydrogen capacities, if you can? I think our first stage of projects was related to the integrated manufacturing. They are continuing. I think also we should be careful in just looking at the media as a media statement. It's the full statement was that, you know, MOU was signed in May. Mm-hmm. Engineering due diligence, technical due diligence, marketing due diligence, that work is continuing. That takes time on large projects like this. TotalEnergies is doing that work. Okay. Once that completed, we will come back and revisit. Then we look at it, our MOU is still signed and was signed last year, May. I think a lot of time, in a high volatility scenario, a lot of things gets said, I think we should not. Our plan always has been that we are continuing with the Adani New Industry projects for the past two years. That work is still continuing. Got it. Thanks for clarifying this. Just the last question is on the airports. I mean, the revenue share started from only October onwards. Just to answer that, the revenue share which we have taken a provision of is from October 22 this year in Mumbai International Airport. Before that, we have already, as per the note which we have been giving, that the no provisions were taken because of COVID restrictions that were there in the earlier part of last year and the first half of the current year. Okay. Got it, sir. Great. Thanks, sir, and wish you all the best, sir. Thank you. Thank you. Thank you. The next question is from the line of Anuj Suneja from ICICI Pru Life. Please go ahead. Yeah, my question is already been answered. Thank you. Thank you. We have the next question from the line of Dhananjay Kumar Mishra from Sunidhi Securities. Please go ahead. Hello, sir. You indicated that the pace of investment will be moderate going forward till the volatility is there. Any changes in our this new Mumbai greenfield project which we are expected to complete by March 2025? Any changes over there? What is the status of financial closure over there? No. I think I just want to clarify. Ongoing projects, there is no change. Navi Mumbai Airport will be completed on schedule December 24th in 2024. It will be ready for commercial, because No. It is all set. Everything is fully funded. There is nothing there for us to do new. It will just Construction is continuing, the best thing to do is that I would encourage those of you who are based in Bombay to actually, it's a small drive. If you don't go, we can hire a bus and take investors there, you can have a look, analyst there. You can have a look at it for yourself. What I, what... When we say we will moderate the CapEx, is that new commitments we will mod? We will in fact, we will not make new commitments till we settle this volatility period. Okay. Even the Ganga Expressway is going as per schedule. There is no changes over there. Yeah, yeah. Yeah. Committed projects are continuing as scheduled. There's no change. We have great support from our banking community, great support from the investor community. There is no change in that aspect. Where we naturally, when something like this happens, you know, it's a very high level of volatility, and we have to handle it in a very mature, sensible manner. We have to look at it carefully. What we are moderating is that we let the volatility settle before we make any new commitments. We will not make any new commitments till we are comfortable that the volatility is settled, and our investor community is not suffering the volatility, and our supporters, which is Proba and people who stand with us, institutions who stand with us, banks and main investors, that they don't have to deal with this on a daily basis. Okay. Our net debt to equity remains at under one. A 0.8 you said, right? Correct. Correct. That, that will not change for Adani Enterprises standalone basis because it actually will always oscillate around that level. Even at the group level, despite all the growth of 46% in the last nine months, in the EBITDA from INR 22 crore to INR 32,000 crore or INR 33,000 crore, net debt to EBITDA has remained at just under 3.2 times. control level you are saying, AEL. At a portfolio level. Yeah. AEL control level is just at 3.8 now. 3.8. Yeah, it's fallen below four for AEL. What is the gross debt at control level in AEL as of now? Saurabh, can you give the precise number, please, on the exact number? As such, sir, in December we don't give the balance sheet numbers. Right now our gross debt to EBITDA is around 4.7 times. We will be giving the full set of numbers in March quarter. At that time, we will come out with the exact numbers also. Okay. We have not calculated debt of Navi Mumbai Airport, in this, right? As of now. No, whatever disbursements have been taken are all included, sir. Yeah. Okay. Okay. That's what I made. All good. Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. The next question is from the line of Bajrang Bafna from Sunidhi Securities. Please go ahead. Congratulations for very good set of numbers for Adani Enterprises. You know, we genuinely stand by with these difficult times, which you know, we are facing due to some unforeseen circumstances. Sir, for the benefit of all of us, you know, there is one thing that is in all of our minds that how we are going to fund the ongoing CapEx or the ongoing different projects that we are doing maybe for FY 2023 and FY 2024, which has already been announced. So if you could in a nutshell, can you know, define that this is what the investment requirement across different portfolios for you know, the coming 12 months. Sure. I think firstly thank you for the support. We are really encouraged by the support from our the core investor and banking community. In relation to the total numbers, Because of this volatility, we don't want to give out each time we speak a number. Over the next six weeks we'll come up with a formal plan, which we will as a part of the new March 31 results. All I can say to you today is as we stand today, sir. We will new commitments we ourselves will not make. Our existing projects are fully funded and continuing. Say Navi Mumbai Airport, roads, data center, etc., they are continuing as scheduled. Got it. Got it. Yeah. Thank you and all the very best, sir. Thank you. Thank you. The next question is from the line of Anshuman Ashit from ICICI Securities. Please go ahead. Thank you, sir, for the opportunity, congratulations on a good set of numbers. The first question is on our wind turbine manufacturing setup. We were testing a prototype. Has that testing been concluded and by when will we start commercial production? The testing will conclude between April and June. There are various steps of testing. Various different tests have to be done, but we expect to be finished by June, July this year. Then commercial operations will start, production will start shortly thereafter. Okay. Sir, the capacity target. Is the 3 GW target being maintained for the wind turbine manufacturing? Yes. Sir, for nine months, what has been the volume from our Carmichael mines? Carmichael mine, Vinay, can you please give the run rate numbers? I think roughly it is around 5.5 million tons. Saurabh can give the right number. I think it's 5.5 or 5.6 million tons. Yes, yes. It is, 5.5 million tons, sir, for nine months. For the current quarter it is 2.5 million tons. Yeah. Yeah. 2.5 million tons already done in the one and a half months in Q4. No, no. We are talking of 2.5 million tons for the quarter. Okay. Sir, what should be the normalized run rate which we can expect from this mine in a year's time, FY 2024? This mine is designed for 15 million tons. Okay. By when can we expect to reach the peak rated capacity? We're trying to get the annual capacity by March or April. Okay, understood. Sir, any targets on the IRM volume front which you can give us for FY 2024? Actually IRM, targets are all decided by the market, demand and supply requirements. I think this year if we are going to be +70 million tons, we foresee the same number till the next year or slightly higher than that. Again, it depends on what we're doing, what is going to shortfall in India and the other countries where we supply coal. Sir, how are you currently seeing the market? Is the demand supply gap still there? Do you expect it to continue over the CY 2023? Yeah. Demand and supply gap is there. We do see it continuing for next years also. It all depends on how the power demand is coming up. If it goes down because of some reasons, it may affect the coal demand also. As of now we are very optimistic and very positive in terms of the demand in the next year also. Okay. Understood, sir. One last question, sir. Have we done the financial closure for the Ganga Expressway project? Is that through? All the sanctions have been completed. There are a couple of conditions precedent that we have to go through, which we will complete over the next two to three months. Okay. Sir, we expect a lot of biddings and awards to happen in the roads front in Q4. Will we be aggressive in those bids where we compete for them and what will be our mix in terms of bidding for HAM projects and EPC projects in roads? No. See, as I mentioned earlier in my comment, for the new commitments on CapEx, we will first want this volatility period to settle before we actually make new commitments. I don't expect any significant bidding in the road projects till this volatility period settles. Okay. Understood, sir. Thank you, sir, and all the best. Thank you. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead. Thanks for the opportunity again, sir. Sir, I just wanted to understand the general process regarding the copper plant and the coal to PVC project that you have. Co-copper plant, as I mentioned, is an existing project. It's continuing. It's part of our natural resources team, which is Vinay's team. They are continuing with the project. Its construction is on schedule and it will complete on schedule. In relation to the coal to PVC, as I said that is one of our new commitments, and we will reveal that commitment post this settlement of this volatility period. For the time being, we will not be making any commitments to new projects. Okay. Sir, and any plans regarding the data centers? Data center is all, scheduled projects and they will continue as planned. Okay. Sir, also I just saw that there was a major dip in the IRM, the coal trading basically volumes. Given that the power demand is set to rise during the summer, so do you see there will be a major spike in this volume going ahead? Vinay, please. I think you're right. Power demand goes up from March to June, July, till you get the monsoon. At that time we definitely get a lot of requirements from NCT board for imported coal. We do see a spike in the demand. As I said earlier also, it all depends upon the demand of power. If it continues or it happens the way it happened in 2022, we are going to have the huge demand coming out of import, of imported coal also. If it settles because of any reason, then you may see the same demands or same numbers which we are seeing in this quarter. The EBITDA per ton is coming out around INR 540. Is this sustainable at higher volumes? Yeah. What happens, if you really see the way we have been working, in IRM, it is more of a service business. Mm-hmm. Because of our being there in the complete supply chain, we command this dollar per ton as a margin which we have been maintaining for last so many years, where it varies between $3-$5 or $3-$6. Okay. We get this because of being there in the service function, being there in the complete supply chain. Got it. We can maintain it, even there, even though it is going to be high volume. I see. This is sustainable. Okay. Sir, now the next question is regarding solar. Just one clarity, sir. What is the total capacity that is operational right now? Is it 3.5 GW? 2 GW. 2 GW, three and a half by June. Three and a half by June. Okay. We are almost running at around 80% capacity. Again, the realization over there is around $0.42 per kilowatt, which is way higher than what is the current trend. Is this also sustainable going forward, sir? You know, that will moderate to more market levels, over a period of time. What will that mean market levels? Market prices basically. Market price, yeah. Okay. Okay, sir. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. Darwin, if there are no further questions, we can close the call. Yeah. Sure, sir. Cool. I would now like to I think. Sorry. Is there anybody who has any questions? Just check once again if that be the case. Sir, we have one participant who has just joined the queue. We will take the question from Nirav. Sure. [crosstalk] We can hear the last question here. Sure. Please go ahead, Nirav. Hello. Yeah. Yeah. Hi, sir. Thanks for the follow-up. Just one question on the MDO operations. I mean, we mentioned that our volumes were impacted by Parsa Kente. Is it a one time thing which was during the quarter or the run rate will recover from fourth quarter onwards? It was a one time stoppages only. Now that it has restarted and the way we are doing the volumes, I think we'll have a very good quarter of FY 2023. Okay. We don't see this to happen in the future. I mean, what was the reason for the lower volumes? Was it offtake related or? No, there's no offtake related issues in any of our MDO contracts. It'll not happen also in the future. It was an issue of moving from your forest permission, where we were moving from Phase 1 to Phase 2. Okay. That was a transition issue. Okay. Got it, sir. Perfect. Thank you, sir. Thank you. Thank you. Darwin, we can now close the call. Yes, sure. I would now like to hand the conference over to the management for closing comments. Over to you, sir. Hi, this is Robbie. On behalf of Vinay, CEO of our Natural Resources Division and Metals Division, Saurabh and Manan and team, I just want to thank everyone for participating. We are on track for continuing performance in Adani Enterprises, as we have indicated, and our incubating businesses are performing as per schedule, which is very pleasing result. Thank you so much for being on the call, and thank you for all your support. Bye-bye. Thank you. Thank you. On behalf of DAM Capital, that concludes this conference. Thank you for joining us. You may now disconnect your lines.