Ladies and gentlemen, good day and welcome to Adani Enterprises Limited Q4 FY23 earnings conference call hosted by Antique Stock Broking. As a reminder, all participants' lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Just note this conference is being recorded. I now hand the conference over to Mr. Rohit Natarajan from Antique Stock Broking. Thank you, and over to you, sir. Thank you, Vikram. Good evening, everyone. On behalf of Antique Stock Broking, I welcome you all to the Q4 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. Jugeshinder Singh, Group CFO, Mr. Saurabh Shah, Finance Controller, and Mr. Manan Vakharia from the Investor Relations. We will start with the brief opening re-remarks from the management, followed by the question and answer session. Thank you, and over to you. Hi, my name is Robbie Singh, I'm Group CFO and CFO for Adani Enterprises. I welcome you all to the earnings call to discuss FY23 results and Q4 FY23. AE's current portfolio of business, both established and incubating, are spread across different verticals in energy utility, transport logistics, direct to consumer and primary industries. Within primary industries, which will be addressed by Vinay, we have established businesses of mining services and Integrated Resource Management with a developing sector in commercial mining. For the sustained long-term growth, we are making significant progress in our attractive incubation pipeline. Focused on energy and utilities, which is Adani New Industries, green hydrogen ecosystem, and full service data center, AdaniConneX. Transport and logistics, within which Adani Airport Holdings and Adani Road Transport. These businesses will further accelerate value creation for AEL shareholders. Our performance for quarter four and financial year 2023 reflects our strong financial foundation and momentum. Consolidated total income for the year increased by 96% to INR 138,175 crore. Consolidated EBITDA increased by 112% to INR 10,025 crores, with strong performance from both established and incubating businesses. Consolidated profit after tax increased by over 200% to INR 2,473 crores. All three lines, top line and bottom line, increased in triple-digit percentage terms. In EBITDA terms, the business has doubled in size in the last 12 months. Our financial results for the year need to be appreciated in the light of following. For the first time, EBITDA of incubating businesses at INR 5,043 crore, which is a growth of 375%, is higher than the operating business EBITDA, continuing business EBITDA, which itself grew at 36% to INR 4,982 crore. This signifies both operational excellence in relation to existing businesses and coming of age of our incubating businesses. The growth in EBITDA has been achieved while keeping debt at almost the same level as last year. Our focus on maintaining credit quality of AEL is demonstrated in these financial numbers. As a result, our net debt to EBITDA ratio has more than halved to 2.2 x from 5.2 x during the last year. Giving you a quick snapshot of operational aspects of incubating businesses. During the quarter, cell manufacturing line was made operational for 2 GW. We completed the upgradation of module line of 2 GW with TOPCon technology. In wind manufacturing, prototype 1 of 5.2 MW facility is completed in the last quarter, and we expect the certification to be achieved by June this year. Blade manufacturing facility, the ramp-up work and machine installation have started, and we expect to be completed in next two, few quarters. From an operational point of view, module sales increased by 4% this quarter. In airports, our passenger traffic increased by 72% and air traffic movement by 56%. In the Adani Road Transport business, three of our HAM projects have completed and another 10 projects are well on their way to completion and are on schedule. Significantly in the ESG journey, our lead DGHS score, which was 51, it was arbitrarily adjusted by DJSI by 5 points to 46. It remains significantly above industry average of 21. Under the ANIL eco-ecosystem, we won the Aegis Graham Bell Award for category for innovation in manufacturing. Mumbai Airport has achieved the highest level 4+ transition on carbon management. With this, I hand over to my colleague, Vinay, who will take you through mining services and IRM business highlights. Vinay, over to you. Thanks, Robbie, and good evening to all. As for the mining service business is concerned, Adani Enterprises Limited is the pioneer of MDO, Mine Development Operator, concept in India. With an integrated business model that spans across developing mines as well as the entire upstream and downstream activities. It provides a full service range, right from seeking various approvals, land acquisition, INR, developing required infrastructure, mining, beneficiation, and transportation to the desired designated consumption plant, which is thermal power stations. PEKB Mine, which is the first mine of MDO, is located in the state of Chhattisgarh, and has become the first mine to achieve the production milestone of 100 million metric tons cumulative by this year, and which we achieved the last quarter. During the quarter, the company has won three commercial mines: Puranga, which is in Chhattisgarh, Gondbaheria Ujheni, which is in MP, and North West of Madheri, which is in Maharashtra. With this company is now MDO for eight coal blocks, two iron ore blocks, as well as we have now 10 commercial mine blocks with a combined peak rated capacity of 140+ million metric ton per annum. These projects are located in the state of Maharashtra, Chhattisgarh, Madhya Pradesh, and Odisha and Jharkhand. The mining production in the Q4 FY23 increased by 17% to 10 million metric ton on a year-on-year basis, and the further dispatch increased to 7.9 million metric ton. During the quarter, the revenue for the mining increased by 18% to INR 803 crores, and EBITDA increased by 8% to INR 311 crores. As far as the IRM business is concerned, Integrated Resource Management business, we have continued to develop business relationship with the diversified customer across various end user industries. We remain the number one player in India. Our endeavor to maintain the leadership position going forward remains intact. The volume in Q4 FY23 increased by 20% to 20.5 million metric ton on a year-on-year basis. The EBITDA for the year Q4 has increased by 42% to INR 859 crores on account of improved realization on year-on-year basis. Thank you. We are open to Q&A. Thank you. Thank you, sir. Ladies and gentlemen, we will now be in the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. To ask question, please press star one now. We take our first question from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead. Mr. Nikhil Abhyankar, your line is unmuted. Please go and ask your question. Hello? Yes, please go ahead, sir. Hello? Please go ahead, sir. We can hear you. Sir, now that the things have settled down after the have we finalized our CapEx plans for the next year? If it is, then can you just give the quantum and where this CapEx will go? Can you just give a guidance on that? Overall our CapEx is split into the relevant categories, so I'll go one by one. In relation to transportation, which is airport and road. Yeah. The CapEx numbers for next year are broadly about $2.1 billion. This is all at exchange rate of 80. Data centers and new industry, which is utilities, there is about $800 million. We have in the materials area where it approximately we expect the CapEx to be about $1 billion. Total CapEx, about $3.8 billion for the year across our incubating businesses and our continuing businesses. Understood, sir. Sir, anything regarding clean hydrogen plants and something around that? No, green hydrogen plants as indicated, remain on afoot. We, we expect the CapEx to start ramping up from about financial year 25. Really, from about financial year 26, as we have indicated before. We've basically, due to certain, you know, as you know, the market dissertation, in relation to that, you know, made up short seller report, we just wanted to, you know, focus on the committed CapEx for the 12 month period. That means that our ramp up will be slightly higher towards 2028-2030. Aside from that, in the core infra and energy and utility space, plants continue afoot. Understood, sir. Sir, our capacity for solar manufacturing is now all 3.5 GW. Should we expect the sales to almost double from here in the coming year? What kind of margins do we expect on that? More than the margin, I think we are currently focused on the completion of the integrated program, because our ultimate aim is to produce the cheapest hydrogen. In the interim period, yes, the integrated manufacturing division will also sell to third parties. There we expect normal between 20%-25% margin. As I mentioned, the bigger aim of the integrated manufacturing facility is to control the input cost of green hydrogen, and that's where our focus remains, is to complete the full integrated facility. Since there is gonna be no CapEx till FY 25, you said with regarding green initiatives. Most likely, 100% of this volume should be gone to the third party, right? No, no. I think, yeah, the initial modules will go to third parties. When we do the integrated development is not just the. For example, we have to, we are in the process of and already planning for the testing of electrolyzer, testing electrolyzer for wind, testing electrolyzer for solar, testing electrolyzer for hybrid plants. All of that work is going on. Our certification of the 5.2 MW wind turbine is going on. It's not just the sale and production. Actually, the aim is towards green hydrogen production. In the meantime, yes, there are commercial orders. And I think the next major objective for us is to complete the ingot wafer manufacturing facility. Mm-hmm. In the meantime, yes, ongoing sales will continue. We have sales on leather, mentioned in my commentary, sales are already at, for the quarter, we're at 375 MW. Sales are already ramping up. We will hit the 2 GW of sales also. Okay, sir. Yeah. Understood. Just a final question on mining operations domestically and in Carmichael. What is the target for production domestically as well as in Carmichael? Now specifically for Carmichael, can you share the revenue and EBITDA for Carmichael in Q4 FY23? Q4 FY23, EBITDA for Carmichael, in terms of the rupee EBITDA, INR 780 crore. Okay. The revenue, sir? For the? Revenue. Revenue is INR 1,746 crores. INR 1,600 how much? INR 1,746. 46. Okay. Any targets for the production in the coming year? Vinay can answer that, but we want target for the 15 million ton production. We are at run rate of 1.1 million-1.2 million ton. Vinay, can you please specifically answer? Sure. Sure. Sure. You know, Target for next year is 12 million tons for as far as the Carmichael is concerned. As far as domestic mining is concerned, we are targeting to touch 40 million tons for sure in next year. We have to keep in mind that there are certain other challenges also which we have to face and we have to achieve those numbers. Yeah. Forty to 12 is the number which we want to keep up. I think just I'll just add and embellish that. 12 million tons is the commercial mining from Carmichael, and 40 million tons is the MDO. Mm-hmm. Mining services, and MDO, servicing contracts. Yeah. Understood, sir. Thank you and all the best. Thank you. We take the next question from the line of Apoorva Bahadur from Goldman Sachs. Please go ahead. Hi, sir. Thank you for the opportunity. Two questions. Firstly, on the TOPCon module line side, I believe we have just commissioned the module line. The cell line which we have commissioned is not TOPCon yet, right? Topcon? The cell line is TOPCon as well, 2 GW. Yes. Yes. Yes. Okay. Fair enough. Secondly is, I believe we have plans for integrated module manufacturing. We participated in the first phase of the PLI. Why did we not participate in the second phase, given that I believe our plan was to extend it till 10 GW? I think for us, it's not a question of participation, it's I think question of our business case. There's no specific, you know, if we want to participate, we want to complete and build, not just participate and keep the capacity. We are at the moment comfortable with where we need to be in relation to the hydrogen chain. Based on that plan, we are sufficient in relation to our current capacity planning for integrated solar lines, including, you know, ingot wafers, cell module, and also ancillaries, plus the wind facility, wind turbine facility. We will have around 4 GW of integrated capacity? As of now, yes. As of now. Okay. Fair enough. Thank you, sir. Thank you. We take the next question from the line of Nirav Shah from GeeCee Investments. Please go ahead. Yeah, good evening, sir. Congratulations on decent numbers and also the deleveraging that we saw in the H2. There are a few questions. Firstly, I mean, if I'm looking at the segmental performance, I mean, there's a marked improvement in the roads performance which we've started reporting from this quarter onwards. What is it pertaining to? I mean, our EBIT has gone up from INR 122 crore- INR 1,430 crore. I think, Nirav, just, you know, I don't want to comment on the adjective, but I think, you know, we've doubled the size of EBITDA of the company and, you know, if my colleagues are feeling disheartened that you just call it decent, not spectacular. I guess. Aside from that, you know, they are all very upset that, you know, 100% growth in cash. No. I think what you are witnessing both in airports and in roads is the power of the incubation model. Last two or three years was our CapEx intense period. Now what you are seeing is the return on those assets rapidly speeding up as the assets are coming online. That is that will also continue because airport is still in early stage of ramp up, very early stage of ramp up. Next year we'll have our eighth operating airport, which in Mumbai will be up and running. When the Mumbai airport is up and running, we already have a backlog of 17 airlines wanting to come to Mumbai. What we are now seeing is the strength of the incubation model, and this incubation model will continue to bear fruits till those assets are big enough for us to consider the demerger plans like we did with Adani Green, ATGL, Adani Power, et cetera, over the last decade. We expect that from an AEL perspective, you will continue to see the incubating businesses come into their own. From next year or in 18 months' time, you'll see the data center numbers come in. From next year, you'll also see Carmichael numbers come in on full basis. By 2025-2026, you start seeing the green hydrogen ecosystem come on its own. Adani Enterprises has a lot of runway and is poised very, very well as we have indicated. It's unfortunate that we had to go through this. Sure ... politicized, malicious report. You see the numbers, the cash flow growth, the top line growth, the profitability growth. These are all triple digit numbers. Also, which we always indicated it to the market, as you commented on leverage, that the group has been on a deleveraging trend since 2015, 2016. It's been going on for eight years, and it is continuing. I think these numbers plus our others, our portfolio companies have reported like Adani Green, et cetera, they are also, you know, +50% growth. You've seen, and you will continue to see this across the group. We have, for us, the incubation story is just starting. Just on the roads performance specific, I mean, there was no asset sale. I mean, it is all the business, EBITDA that we've seen in the roads segment. Yes. Because EBITDA has. That's why if you recall, we always say and sometimes, you know, we have this debate with analysts that, why do we use run rate EBITDA? This is exactly what you are seeing. See, last year, EBITDA was artificially low because assets were just completing. This year you see the full year effect. All of a sudden you see all the numbers. This year also is when you see the run rate number is a lot higher than this number because assets have completed, but EBITDA has only come for one month or two weeks or three weeks. All of our businesses are that way because we are fast growing businesses. What you are seeing is the power of the asset development program. Now you are seeing that the EBITDA is catching up. Got it. Second question is on, we mentioned that we have done an EBITDA of around INR 780 crores from Carmichael Mines. If I look at the segmental performance, where does it get reflected, sir? It's part of the mining segment in case of the Australia mine as well as on the Indonesia mine. Correct. It's IRM? Yeah. No, no. No, no. Part of the mining segment. Mining segment. Mining segment is there. Okay. I'm seeing only IRM, MDO and then the other segments. When you are seeing the presentation, MDO is separately shown. In the UFR, if you will see there is a mining segment under which the entire thing sits. Hello? I think, Nirav has dropped off. Can we take the next question? Once he joins back, we can take him on the queue. Thank you, sir. Anyone who wishes to ask a question may press star and one on your touchtone phone now. We take the next question from line of M.B. Mahesh from Kotak Securities. Please go ahead. Hey. Hi. just two questions. how would you explain this sharp increase in finance costs in four Q? It's gone up from INR 600 crores- INR 1,525 crores. So one- Hello. That is largely related to two elements. One is the right of use, lease cost in relation to the rail in Australia. Second, the continuing CapEx program in the airport business. Okay. The second question, how do you look at the debt levels in this year and what is the expected repayment schedule? No, debt repayment schedule is specifically outlined in our presentation on on the various maturity structures. There's a separate guide presentation which will also be released overall. Sure. As I mentioned, our debt, gross debt numbers, our net debt numbers not changed between this year and last year. Okay. That is on net debt to EBITDA is 2.2 x. Absolutely. Thanks. One clarification. There has been a significant reduction in short-term debt in airports and Australia project. If you could just kind of explain what's happened here? No, that is basically, from airport time, we did the put in place for part of our airport SPV's longer term capital plan. Precisely the same thing happened for Australia as well. Okay. Perfect. Done. Thanks. Thank you. Participants who wishes to ask a question may press star one now. Take the next question from the line of Saloni Ajmera from Antique Stock Broking. Please go ahead. Hello. Please go ahead, ma'am. I can hear you. Yeah. Please speak a little, please use the handset, ma'am. I am using my handset already. Can you hear me now? No, you'll have to speak a little louder then. Okay. Please go ahead. Yeah. I just wanted to know about our New Industries Limited. We have total investments of around $50 billion by FY 2030. If you can give the capital allocation of supply chain products, green hydrogen, generation and downstream products. That we will revert to you separately because although we have the numbers, overall, just to give you a broad idea, approximately 65% is for the generation element of green hydrogen power, green power. Downstream is about just about 13%-14%. Same number for the actual electrolyzer for green hydrogen, and the rest is within the manufacturing ecosystem. Okay, sir. Got it. If you can, you know, throw some light on Mundra Green Hydrogen Hub? Currently we are focused on the integrated manufacturing system, certifications for the onshore wind turbines, preparatory work, pre-engineering work for the downstream systems, pre-engineering work for the for the generation plant, et cetera. All of that work is going on. In each element, the work is underway. On the specific, if you have detailed question, I think we will take the question on note, and we can send out a detailed note. Okay, sir. Got it. Thank you. Participants who wishes to ask a question may press star and 1 on their touchtone phone now. Anyone who wishes to ask a question may press star and one. We take the next question from the line of Rohit Natarajan from Antique Stock Broking. Please go ahead. Yeah. Thank you. Thank you for this opportunity. One thing that we have had is a tremendous growth in the, you said in the opening remarks about the Integrated Resource Management, in terms of volumes for this year. Now that we've seen that the coal prices have corrected, there is even a saying that probably the volumes could also be corrected. What could be the guidance for FY 2024 as such for the IRM part? Vinay. Yeah. Thanks for the question. In fact, you're right, the prices have corrected. As we have been mentioning it, for last few years, we are more into a service functions. We are now expanded into a complete country with the setup at all the places. Possibility of our volumes going down drastically is not there. It all depends on how much import will be required. What we can assure you is that our market share will be higher only, higher to last year. Numbers will depend on what type of imports will be seen by the country in next financial year. Okay. My second question is more to do with your mining portfolio. I saw that your presentation speaks about the peak rated capacity of 110 MMT once every, mines are operational. Currently our operational capacity says we are at 51 MMT and, Adani Enterprises is doing, if I'm not mistaken, somewhere around 25 MMT. What could possibly, bridge this volume segment? Which are the mines that could possibly be operational in the near term, that can drive up the numbers in FY 2024? Okay. All these mines which we are talking about, comes out with a mine plan, which indicates that what is going to be a first year volume and what is going to be ramp-up volumes. Let us talk about one mine, which is Talabira, where we have the peak capacity as 23 million tons, and last year we did only 10 million tons. Now, the customer has given us the ramp-up plan, according to their mine plan understanding, which says that by FY 2026 we have to achieve 23 million tons. We are equipped to do it. If customer wants it to be, 23 million tons before that, we can do it. It depends on the customer and the mine plan to take it to a peak capacity as notified in the mine plan. Currently the mines which we are operating have the peak capacity of 50 million tons. If everything goes well and the customer agrees, we can take up to 50 million tons from existing mine in by FY25, FY26. Got it, sir. Got it. Sir, any color on the new mines that you have won the commercial development? You haven't announced the capacity as such, which I believe is under consideration. What exactly will be the expected coal rates, stripping ratio, bit throughput for the commercial mines that you have won in the recent past? The commercial mine which we are taking a mix of underground mine and open cast mine. They're also a mix of explored mine and unexplored mine. You know, I can give you a detail of mine by mine. Like Dhirauli is there, we have a mine capacity declared as 5 million ton now. There are at least five blocks which are unexplored block, where we have to do the exploration, we have to finalize the GR, and we have to agree for mining peak capacity in those. It will be little early for me to give you a visible number, a right number on the peak capacity as well as the contribution which is going to be added in the kitty. Okay. The mining services, if I'm not mistaken, were impacted due to the slow volumes in PEKB mine. Is that issue sorted out? It was moving from phase 1 to phase 2. We were expecting it to be very smooth. We got an issue of 1 and a half to 2 months' time. It is sorted out. We are already working in phase 2. We are very hopeful that we'll continue like this fulfilling this mine's requirement for the Assam government. Sure. Thank you on that mine part. My question moves on to the roads part. We have given, in the presentation that we have plans to have a portfolio of 12,000 Km by 2026, from a portfolio of 5,000 Km at this point in time. Logically, if we are targeting this portfolio, we should be winning at least 3,000 Km every year, which is a substantial chunk in the market share as such. What is our roadmap for that? Just one second. I think, that's our stated projecting. I'm not, at will want go by project by project and how that will come. We've outlined a number based on our current best estimate in relation to where we stand on bidding and other opportunities in the country. Okay. Would you give some color on maybe will it be hybrid annuity model, TOT, BOT, anything on that part? Mainly, BOT. Okay. Given that you have a HAM portfolio right now, would you be monetizing it once the PCOD or COD is done? Is there any asset monetization, scope of asset monetization over there? No. See, when you look at this, since you asked the question, you know, I am answering this for you in a more detail than it implied in your question. See, one is that we as I mentioned, our growth plan is in the BOT model. The reason is that we believe that we are best placed to address that risk in combination with execution and operations. That's where we can deploy our capital in the most effective manner. Now, initially, to set off, we undertook certain number of HAM projects. Now, HAM projects are not a natural, from a risk-return perspective, not a natural fit for a long-term infrastructure hold where we need to grow the businesses, where if we understand traffic risk, that's the best risk we can take because that's a direct consumer risk in India. We are looking at it from that point of view. If you look at our like airports or look at, Adani Transmission growth in distribution, Adani Total Gas in distribution, that is all a direct synchronization with the aspirational rise of the Indian consumer. Similarly, we believe that BOT project offers the same opportunity, consumer opportunity in the road sector. If we look at some monetization of things like that, we will look at from a whole of business perspective rather than just specific assets. We are not really, we hardly ever do any specific asset monetization unless it's a specific thing like where a partner brings a very specific expertise like on containers, like terminals at port, et cetera. Otherwise, either we look at a platform basis or we'll continue our development of the BOT model. Sure. Thank you. Thank you for that detailed explanation. I will get back into the queue for more questions. Thank you. Thank you. We'll take the next question from the line of Nirav Shah from GeeCee Investments. Please go ahead. Hello. Sir, am I audible? Yes, you are. Please go ahead. Yeah, sure. sir, I mean, how much CapEx have you spent on Narendra Modi Airport till date and out of the total? We will take that question specifically because it's a CWIP work in progress. Whatever number I give you will be wrong in two weeks time when the next billing goes out fortnightly. Okay. We can give you the schedule. It's expected to complete calendar year 2024 last quarter, and it's on track for that. We will take that question and we will respond in writing. Got it, sir. That's so much. Thank you. Thank you. We'll take the next question from the line of Prateek Kumar from Jefferies. Please go ahead. Yeah. Good day, sir. I have two, three questions. My first question is on airports. There was a recent report on the airport that said that Center is likely to go slow on airport privatization plan. What are you hearing on this in respect to new airport additions which you are targeting earlier over a post the recent set of airports? No, I think, I mean, we are ready. We have our network plan. We've target airports that we would like to get. We are not, we've not heard anything other than the fact that AO privatization would continue. There can be timing movement here or there, but we haven't heard anything to the contrary in relation to the airport divestment by the government. Okay. A couple of questions on hydrogen. The Gujarat cabinet, we read that they've approved some 2 lakh hectares of land for green hydrogen projects, for five companies. Is this incremental land we are looking at, in another location from our base location or where are we looking at this land for the green hydrogen project? This is incremental over and above our current holdings. This is another 80,000 hectares of land, which we are looking at, and it's at completely different location. Is it also like sort of synergistically located like the other one which we had? Yes. Lastly, there was this planned commissioning of test phase of 0.2 million ton hydrogen in early part of FY26. Is there a revised timeline for this? We're just working through that. It will be plus one year. It could be like FY 27, early FY 27 now. Yes. for the test, yes, 0.2. Yes. Yes, yes. Right. Thanks. These are my questions, sir. Thank you. Thank you. Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I'd now like to hand the conference back over to the management for closing comments. Over to you, sir. Thank you to Antique team, and thank you to, Vinay and Saurabh, Manan, Rahul and team, for this. From our point of view, you know, thank you then to the questions. We are pleased to continue to showcase the business strength and business momentum, and you've seen that in effectively doubling of business in one year. Thank you so much. Thank you, sir. Ladies and gentlemen, on behalf of Antique Stock Broking, that concludes this conference. Thank you for joining with us. You may now disconnect your lines.