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Adani Enterprises Ltd.

BSE: 512599 Sector: Others
NSE: ADANIENT ISIN Code: INE423A01024
BSE 00:00 | 11 Jun 1601.45 -10.10
(-0.63%)
OPEN

1618.00

HIGH

1621.15

LOW

1575.60

NSE 00:00 | 11 Jun 1601.60 -10.40
(-0.65%)
OPEN

1615.10

HIGH

1620.10

LOW

1575.25

OPEN 1618.00
PREVIOUS CLOSE 1611.55
VOLUME 336513
52-Week high 1718.45
52-Week low 141.10
P/E 345.14
Mkt Cap.(Rs cr) 176,127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1618.00
CLOSE 1611.55
VOLUME 336513
52-Week high 1718.45
52-Week low 141.10
P/E 345.14
Mkt Cap.(Rs cr) 176,127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Adani Enterprises Ltd. (ADANIENT) - Chairman Speech

Company chairman speech

Dear Shareholders

The Webster definition of resilience is "the capability of a strained body torecover its size and shape after deformation caused especially by compressivestress". It's hard to believe that it was less than 3 months ago on 11thMarch 2020 that the World Health Organisation declared the outbreak of COVID-19 as apandemic meaning COVID-19 has spread worldwide. If there ever has been a time when theneed for global resilience has been critical it is now.

The Power to Overcome

At times like this one looks for inspiration. In this context Wayne Muller awell-known author writes that for thousands of years humankind has suffered famine warplague hunger and countless injustices; it has experienced numberless births and deaths.Each community of people has had to find some wayto speak about what sustained them orbrought them grace—even in the midst of terrible sorrow. We have struggled to namethis human trait the universal force that makes the grass improbably push its way throughconcrete the force that turns the earth the energy that we seem to possess and blessesall life the essential presence in our deepest nature that can never be spoken of withperfect accuracy but yet make us what we are. History is one big story of humanovercoming. It's what we are born to do.

Decisive Governance

What we must realise is that there are no absolute right or wrong ideas. What isrequired during an unprecedented crisis like COVID-19 is a Government that is willing tomake decisions based on best available information at a given point of time and constantlyadapting as new information becomes available. For this the Indian Government andbureaucracy must be complimented. Countries with greater resources than ours havestruggled and while our battle with the virus is far from over I have no hesitation instating that had the decisions that got made been delayed we could have been facing anunmitigated disaster that would not just impact India but have global ramifications. Yesbusiness has suffered immensely lives and jobs have been lost and the migrant workercrisis saddened the entire nation but the consequences of the unknown alternates would befar grimmer. What the leaders of our nation the doctors the healthcare workers thepolice the army the small street side vendors and the citizens have done to supporteach other is truly what defines India and its resiliency. Add to this the fact that theGovernment is now able to do direct benefits transfer as a result of the integratedapproach it has built through the Jan Dhan Aadhaar and Mobile linking systems and westart seeing the benefits of a Government that had the vision to put in place theinfrastructure we need to be able to handle a crisis.

The Possibilities

Sitting where we are today I can say that history is in process of being scripted. Iwill be the first to admit that I have no way of predicting the short or mid-term possibleeconomic outcomes as a result of COVID-19. However there cannot be any denying the factthat India over the next several decades will be a market continuously on the up and onethat simply cannot be ignored. It will be one of the world's top consumption centersmanufacturing and service hubs and a beacon of stable democratic governance. If there wasa time to make a bet on India there may not be a better time than now. What I can predictis that on the other side of this crisis will emerge massive new opportunities willemerge great new leaders will emerge terrific businesses and will emerge a few strongernations. Those that succeed will be the ones that understand that resilience is built onthe other side of the tunnel of crisis and we are already getting ready for this.

Resilient Group Performance

I am pleased to report that each one of our six publicly traded companies has performedwell even as we started to confront the trying circumstances following the first few weeksof 2020. While we may have to do need-based course correction in our strategies in thewake of the challenge that we are facing the roadmap remains clear. Our businesses areclosely aligned to the lifeline of the economy providing essential services to enhancethe quality of life of citizens and addressing critical national infrastructurepriorities. We look at our Group companies as individual growth drivers that complementeach other's strengths.

Any shock to a system always helps drive home some key points and what the Indianbusinesses have learnt over the past few years and most certainly post COVID-19 is thevalue of an optimal and perhaps for some sectors a conservative capital structure as wellas the criticality to have systematic risk mitigation plans in place. Both optimal capitalstructures and risk mitigation is a part of the maturing of the business philosophies asthey grow in size and lays the foundation for stability as well as consistent valuecreation.

At the Group level our focus is on optimising capital utilisation redesigning theorganisational structure to minimise risk in our businesses and funding operations inphases. I am happy to share that during the year the Group has been able to bringstrategic global equity partners in Adani Gas Ltd Adani Green Energy Ltd and AdaniElectricity Mumbai Ltd (AEML). The total investment is USD 1.6 Bn; and will help drivefuture growth of our businesses. It is also pertinent to mention that AEML (part of AdaniTransmission) recently completed an investment grade USD 1 Bn bond issuance the first bya private integrated utility from India. The issue generated significant interest frominternational investors and was oversubscribed by 5.9 times. I must also mention here thatAPSEZ raised $750 Mn by selling overseas bonds the proceeds from which would be used forfund expansion and further reduce the cost of debt and progressively further deleveragethe balance sheet. In the preceding 12 months the Group has successfully placed sevenbonds in the international markets totaling to 4.26 Bn USD.

The Incubation Model Continues

Over the years Adani Enterprises has focused on building emerging infrastructurebusinesses contributing to nation-building and divesting them into separate listedentities. Having successfully built unicorns like Adani Transmission Adani Power AdaniPorts and SEZ Adani Green Energy and the recently formed Adani Gas we have set oursights on making the country self-reliant with our current portfolio of robust businesses.The next-generation of our strategic business investments will be centered around thefields of solar PV manufacturing airport management technology parks and waterinfrastructure

Business review

It has been another year of resilient performance and operations across our businesssegments. In the resources segment we remain the country's largest resources playerdelivering industry leading performance with a 17% increase in volume handled as comparedto previous year.

In our mining services business we peaked the capacity of 100+ Mn metric tons perannum with an enhanced project pipeline. We also forayed into the Washery service businessand have received LOI for Hingula washery project for 10 MMT. We delivered robustperformance working on our three coal blocks at Parsa East & Kente Basan (PEKB) GarePalma III (GPIII) and Talabira II & III. PEKB continues to produce at peak ratedcapacity of 15 MMT while GPIII and Talabira II & III became operational during theyear.

During the year under review we recorded a significant growth in our solar modulevolumes by 55% to reach 990 MW. This resulted in a rise of EBITDA to Rs. 301 croreagainst a modest Rs. 37 crore in FY 2018-19. As the government pushes for more reforms andencourages greener energy we expect this segment to continue its growth.

Group's Sustainability Journey

Our journey towards sustainability accelerated over the past 12 months. We are nowleading the clean energy transformation taking place not just in India but globally andour Group is building one of the largest integrated energy portfolios. Our vision is tobecome the world's largest solar power company by FY 2024-25 and the largest renewablepower company by FY 2029-30. I must mention here that our Group and TOTAL signeddefinitive agreements to deepen our existing partnership and commitment for developingmulti-energy offerings for the Indian energy market. We are fully committed to supportingour nation in diversifying its energy mix through partnerships in natural gas and solarenergy.

Growth with Goodness

We at the Adani Parivar are fighting the COVID-19 battle unitedly. Our Foundation hascontributed Rs. 100 crore to the Prime Minister's Citizen Assistance and Relief inEmergency Situations Fund (PM CARES Fund). I am equally grateful to our workforce in Indiafor contributing Rs. 4 crore for the battle against COVID-19. It is because of thesolidarity demonstrated by this workforce of over 17000 people that our Foundation couldadd another Rs. 4 crore collectively contributing another Rs. 8 crore towards COVID-19relief projects in India. As a responsible corporate we will continue to stand by thenation in various capacities in this hour of need. On that note I must also take thisopportunity to thank our teams for the following measures:

• Adani Foundation contributed Rs. 5 crore to the Gujarat CM-Relief Fund and Rs. 1crore to the Maharashtra CM Relief Fund; we have also contributed to Kattupalli DistrictCollector COVID-19 Fund and the Bhadra District Administration.

• The Foundation is also contributing to the CM-Relief Funds of many other statessuch as Kerala Jharkhand Andhra Pradesh.

• Women cooperatives aided by Adani Saksham produced more than 1.2 lakh masks tohelp economically disadvantaged sections of the population.

• Gujarat Adani Institute of Medical Sciences (GAIMS) is the only hospitalequipped for handling COVID-19 cases in Kutch India's largest district.

In times such as this the spirit and compassion of our people reinstates my belief inour core philosophy of Growth with Goodness. Let all of us contribute to help our nationrise above this crisis. It may take time but there is ample optimism to show that it ispossible.

Together we will stay resilient and hopeful in these testing times.

Regards

Gautam S Adani

Chairman