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Adani Transmission Ltd.

BSE: 539254 Sector: Infrastructure
NSE: ADANITRANS ISIN Code: INE931S01010
BSE 00:00 | 27 Jan 2009.70 -502.05
(-19.99%)
OPEN

2409.95

HIGH

2440.20

LOW

2009.40

NSE 00:00 | 27 Jan 2014.20 -503.55
(-20.00%)
OPEN

2406.05

HIGH

2448.00

LOW

2014.20

OPEN 2409.95
PREVIOUS CLOSE 2511.75
VOLUME 121301
52-Week high 4238.55
52-Week low 1815.00
P/E
Mkt Cap.(Rs cr) 224,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2409.95
CLOSE 2511.75
VOLUME 121301
52-Week high 4238.55
52-Week low 1815.00
P/E
Mkt Cap.(Rs cr) 224,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Adani Transmission Ltd. (ADANITRANS) - Chairman Speech

Company chairman speech

Optimism comes from Resilience. Resilience comes from Belief. Belief isOptimism

To say the world is in uncharted waters would be an understatement.

The adverse impact of a mix of the pandemic armed conflict and climatechange has exposed the fragility of the global system that we had largely considered ashaving competently learned how to manage itself. It has now dawned on governments acrossthe world that the implications of this multidimensional crisis are hard to predict maycomplicate further and that signs of its damaging effects — uncontrolled inflationdisrupted food supplies increased human displacement exposed healthcare machinerystalled education levels and faltering job creation ecosystems — are evident andtesting the resilience of every nation.

Resilience is defined as the characteristic that makes it possible torebound into shape; it is the ability to withstand crises; it is the ability to faceuncertainties with curiosity and optimism. This capacity to rebound is becoming harder tomodel or predict as the crises drivers are becoming harder to anticipate and increasinglyintermingled. While there is always room for debate there can be no denying that lookingback India has emerged far better in its handling of the Covid-19 crisis from thehumanitarian and economic perspectives than most developed economies. India has been ableto take a mature approach to the ongoing conflict and has been one of the most aggressivenations in terms of establishing a renewable energy target for itself; while doing all ofthis India has also emerged as the fastest growing major economy.

The overarching takeaway is that despite global instability India hasfared better than almost any other major nation. While there were situations over the past24 months when it appeared that events were getting out of control we must give creditwhere credit is due — India was able to bounce back each time a testimony to ournation's resilience. In my view utopian as some may call it India's resilience comesfrom its historic culture that has been shaped across thousands of years — a model ofco-existence that actually works and the philosophy of 'vasudhaiva kutumbakam' whichmeans that the world is one family.

A culture of resilience

In my view utopian as some may call it India's resilience comes fromits historic culture that has been shaped across thousands of years - a model ofco-existence that actually works and the philosophy of 'vasudhaiva kutumbakam' whichmeans that the world is one family.

It is India's inherent resilience that provides our nation itsunderlying optimism. My belief in our nation has never been higher. To use a cricketinganalogy we are now playing on one of the strongest home grounds and on one of the firmestpitches that has ever existed. This pitch is expected to remain firm for several decades.Optimism comes from resilience. Resilience comes from belief. And belief is optimism.

In our case it is this resilience optimism and belief that drives us.The primary reason for the success of the Adani Group comes from our alignment with theIndia growth story. Never have we shied from investing in India never have we slowed ourinvestments and never have we feared to enter adjacent sectors - our resilience comesfrom this unshakeable belief and confidence in the aspirations of our fellow Indians andthe future of India.

During the journey of more than 25 years there were uncharted waterswe entered and multidimensional crises that we faced. While we may have stumbled a fewtimes we were always able to get back on our feet. Our ability to rise after everystumble meant we grew bigger and stronger by drawing on our experience. It is theseexperiences that have enriched us with resilience and laid the foundation of our optimism.

At a fundamental level our strategy is linked to the strategy of thenation. Over the past decades we have always believed in the policies announced by theGovernment have continued to invest through all economic cycles watched for emergingsectors critical for the country's growth and entered new sectors with a confidence in ourlearning and operating abilities. We have grown adjacency by adjacency without gettinghung up on textbook business models. We have built infrastructure anticipating a farlarger and greater India; this confidence has paid dividends.

The sum of these investments of the past empowered us to address thepresent crisis and set us up stronger to handle any new crisis in the future. It is thisfuture that unfolded over the period FY 21-22. This was a year when we announced ourselvesto the world. In FY 21-22 our confidence in our ability was validated. Our belief in ourpast defines our ability to believe in our future translating into the big bets that wemake.

Preparing to go 'green'

The best recent evidence for our confidence and belief in the futurehas been the US$ 70 Bn investment we announced in facilitating India's 'green' transition.We are already one of the world's largest developers of solar power. Our strength inrenewables will empower us enormously in our effort to make 'green' hydrogen the fuel ofthe future; it will equip us to produce

Our combined Group market capitalisation exceeded US$ 200 Bn. We raisedbillions of dollars from the international markets - a validation of confidence in theIndia and Adani growth stories. the least expensive 'green' electron and the leastexpensive hydrogen. We are leading the race to transform India from a country that isover-reliant on imported oil and gas to a country that can become a net exporter of cleanenergy. This would be a 'never- done-before' transformation in fortunes in a stunninglyshort period of time across the largest scale. This transformation will help reshapeIndia's energy footprint in an extraordinary way.

While we are now a major global renewable energy player we maderemarkable progress in several other industries. In one stroke we have become the largestairport operator in India. Around the airports where we operate we are engaged in theadjacent business of building aerotropolises and creating localised community-basedeconomic centres. We have made entries in sectors ranging from data centres super appsand industrial clouds to defence and aerospace metals and materials - all aligned withthe Government's vision of an Atmanirbhar Bharat.

We continue to grow as builders of India's infrastructure winning someof the largest road contracts in the nation and growing our already substantial marketshare in businesses like ports logistics transmission and distribution city gas andpiped natural gas. The successful IPO of Adani Wilmar made us the largest

FMCG company in the country and we are now the second largest cementmanufacturer in India. This year our combined Group market capitalisation exceeded US$200 Bn. We raised billions of dollars from the international markets - a validation ofconfidence in the India and Adani growth stories. This growth and success have beenrecognised around the world. Foreign governments now come to us with proposals to work intheir geographies and help build their infrastructure. The result is that in 2022 we laidthe foundation to seek a broader expansion beyond India's boundaries.

I have no reason to believe that over the next two decades we will notsuitably address this challenge. It is a virtuous cycle that is driven by the growth inthe middleclass population and India today enjoys the world's firmest pitch on which tobat.

Robust results record numbers

The growth in our market capitalisation has been supported by a robustand sustained growth in our cash flows. Our focus on operational excellence and accretivecapacity addition delivered across our portfolio an EBITDA growth of 26%. PortfolioEBITDA stood at RS42623 Crore. This growth was diversified and reflected across ourbusinesses the results speaking for themselves.

Group highlights

¦ Our Utilities portfolio grew 26%

¦ Our Transport and Logistics portfolio grew 19%

¦ Our FMCG portfolio grew 34%; and

¦ Our Incubator business represented by AEL grew 45%

The high growth of our incubator AEL provides the group with a robustfoundation for the continued development of new businesses for yet another big decade.AELs unique business model has no parallel and we intend to leverage this further.

Segment highlights

AGEL

¦ Adani Green Energy Limited added 1940 MW operational capacityin FY 21-22 (greenfield commissioning 200 MW and inorganic addition 1740 MW)

¦ Adani Green Energy Limited's solar capacity utilisation factor(CUF) improved 130 bps YoY to 23.8% and wind CUF improved 400 bps YoY to 30.8% in FY 21-22

ATL

¦ Adani Transmission Limited added 1104 ckm to its networkreaching 18795 ckm and sold a record 7972 Mn units during the year.

APSEZ

¦ Adani Ports and Special Economic Zone Limited cargo volumegrew 26% to 312 MMT in FY 21-22; the journey from 200 MMT to 300 MMT in cargo volume wasachieved in the record time of just three years.

¦ Adani Ports and Special Economic Zone Limited also handledrecord container volume of 8.2 Mn TEUs a growth of 14%

ATGL

¦ Adani Total Gas Limited added 117 CNG stations 556commercial 154 industrial and 85840 domestic customers a combined volume of 697 MMSCM(CNG+PNG)

Strategic highlights

¦ Adani Green Energy Limited completed the acquisition ofSoftbank's 5 GW renewable energy portfolio

¦ Adani Enterprises Limited commenced operations of its Bravusmine in Australia.

¦ Adani Enterprises Limited took over operations of theGuwahati Jaipur and Thiruvananthapuram airports and completed the acquisitions of MIALand NMIAL.

While we can look back and feel content we are only now gatheringmomentum What we have built over two decades is India's largest integrated infrastructurebusiness based on a rapid extension into adjacent businesses. The result is that this isnow being transformed into an integrated 'platform of platforms' that combines energy withlogistics This is moving us closer to an unprecedented access to the Indian consumer Iknow of no company that has such a business model with potential access to an unlimitedB2B and B2C market for the next several decades

A landmark year

It is here that I also want to take a moment to reflect on 2022 as ayear with special personal meanings It represents the 100th birth anniversaryof my inspiring and role model father Shri Shantilal Adani and my 60th birthdayTo mark this milestone the Adani family came together and decided to contribute RS60000Crore towards charitable activities related to healthcare education and skilldevelopment especially for rural India These three areas should be seen holisticallyrather than separately because they collectively form the drivers for an equitable andfuture-ready India We have an opportunity in India to decisively lift tens of millions ofpeople permanently out of poverty

We owe it to ourselves and our country to do everything we can tocatalyse that process Our experience in large project planning and execution and thelearnings from the ongoing work done by the Adani Foundation will help us uniquelyaccelerate and implement these programmes across societies that need them the most

The road ahead

Getting back to the theme of optimism as a driving force for a societyMartin Seligman often referred to as the 'father of positive psychology' wrote in theHarvard Business Review that he came to his insights into the power of optimism 'the longhard way through many years of research on failure and helplessness' Essentially hediscovered over several years of studies that resilient people develop the courage ofinterpreting setbacks as temporary local and changeable A quote attributed to WinstonChurchill echoes Seligman's findings on resilience "Success is not final"Churchill is supposed to have said "failure is not fatal: it is the courage tocontinue that counts"

The reason I have always been inspired by writing and thinking aroundresilience is because as an entrepreneur my philosophy has always been to keep trying

I am an incurable optimist My optimism is founded on my belief in ourability to create a better future This is why I always argue that India has become one ofthe greatest countries in which to be an entrepreneur The prospects and potential for thefuture are dazzlingly bright In India I see a real relish to finally reclaim our formereconomic stature and our position as a pivotal force in global affairs There will bebumps along the road as has been the case in the past and is expected to be the case inthe future However there cannot be any doubt that the largest middle-class that willever exist augmented by an increase in the working age and consuming population sharewill have a positive impact on India's growth rates much in line with the demographicdividend that India enjoys

I have no reason to believe that over the next two decades we will notsuitably address this challenge It is a virtuous cycle that is driven by the growth inthe middle-class population and India today enjoys the world's firmest pitch on which tobat

Gautam Adani
Chairman

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