Adani Enterprises Reduces FY25 Capex By 13% To Rs 80,000 Cr

Adani Enterprises (AEL), the leading entity of the Adani Group, has announced a 13 per cent reduction in its capital expenditure (capex) for the fiscal year 2024-25, scaling it down to Rs 80,000 crore. 

This decision comes following the December quarter results, wherein senior officials had initially projected a capex of Rs 92,000 crore for FY25.

According to Saurabh Shah, deputy chief financial officer of Adani Enterprises, the adjustment primarily affects the combined Adani New Industries (ANIL) and airports business segment. Shah stated, "We are looking at a capex of about Rs 80,000 crore in FY25. ANIL and airports will account for Rs 50,000 crore, roads for Rs 12,000 crore, PVC business for Rs 10,000 crore, while data centres will receive Rs 5,000 crore." These details were shared during a post-Q4FY24 earnings call with analysts.

As per media reports, the earmarked capex for FY25 represents a significant surge of 138 per cent compared to the previous fiscal year when it stood at Rs 33,600 crore. 

Shah elaborated, "The overall capacity will expand to 10GW in module integrated manufacturing, covering polysilicon to modules. In wind energy, we aim for a capacity of 3GW. This capex is aligned with our strategic direction."

A presentation by AEL highlighted a 31 per cent increase in gross debt and a 37 per cent surge in net external debt during FY24. Gross debt amounted to Rs 50,124 crore, while net external debt stood at Rs 27,776 crore compared to FY23. Adani New Industries focuses on green hydrogen generation, including downstream products, green electricity generation, and manufacturing of electrolysers and wind turbines. ANIL reported a 110 per cent surge in module sales in megawatts during FY24, reaching 2679 compared to 1275 in FY23.

With operations at seven airports, AEL stands as the second-largest airport operator in India after GMR Airports Infrastructure. The company is in the process of establishing a greenfield airport in Navi Mumbai, aiming to commence operations by the end of FY25. A significant portion of AEL's capex allocated for Adani Airport Holdings (AAHL) will be directed towards the Navi Mumbai International Airport project. Passenger traffic across AAHL's airports witnessed a 19 per cent growth to 88.6 million during FY24 compared to FY23.

Air traffic movements surged by 10 per cent to nearly 594,000 during FY24, with the addition of seven new airlines, 10 new routes, and 18 new flights throughout the fiscal year.