Adani Enterprises Limited (512599) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Adani Enterprises Limited Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you, and over to you.

Thanks, Mike. Good evening, everyone, and welcome to the Q3 FY '25 Earnings Call of Adani Enterprises. Today, we have with us the senior management of the company represented by Mr. Vinay Prakash, Director Adani Enterprises Limited as CEO Natural Resources; Mr. Robbie Singh, CFO, Adani Enterprises. Mr. Manan Vakharia, Investor Relations. Without much delay, I will now hand over the call to Mr. Robbie Singh for his opening remarks, which will be followed by Q&A. Over to you, sir.

Thank you. Thank you, everyone, for joining. Good evening. We welcome you to the earnings call to discuss Adani Enterprise results announced today for quarter and 9 months 31st December 2024. Adani Enterprise Limited is the flagship company of Adani Group, one of India's largest business incubators. Over the years, Adani Enterprise has focused on building utility and infra assets, contributing to addressing logistics and energy transition challenges of India. The business portfolio of AEL is clubbed under incubating and established businesses, which comprise assets spread across energy and utility, transport and logistics, direct-to-consumer and primary industries. AEL's emerging core infra businesses under its incubation portfolio are represented by Adani New Industries, data center, airports and road businesses. Established business portfolio is represented by primary industry vertical spread across mining services, metals and minerals, commercial mining and industrials. The emerging core infra businesses have yet again delivered robust 9 months results. ANIL, the green hydrogen ecosystem EBITDA increased by 121% to INR 3,666 crores. Module sales are now at a run rate of 1 gigawatt per quarter. And the wind business has supplied over 100 turbine sets during this 9-month period. Adani Airports EBITDA grew by 43% to INR 2,527 crores with the passenger volume increasing 7% to 69.7 million, and this is at a run rate of roughly 90 million per year. The incubating businesses results during the 9-month period are income up by 47% to INR 25,170 crores, EBITDA up by 27% to INR 7,674 crores, and PBT up by 114% to INR 4,016 crores. This consistent high contribution of these emerging core and infra businesses boosted the overall consolidated results during the 9-month period, with the consol income up by 6% to INR 72,763 crores, consol EBITDA up by 29% to INR 12,377 crores. Incidentally, just so that everyone understands, this 9-month EBITDA is roughly the same as last full year EBITDA of INR 13,200 crores. The consolidated profit before tax, up by 21% to INR 5,220 crores. And just again, this is roughly same as last full year's profit before tax. I just want to also highlight for everyone that as part of the holding structure of the mining business, which is within AEL, we use an instrument to invest when AEL invests in its mining subsidiaries, it uses a shareholder loan, which is generally given in U.S. dollars to the mining business, primarily in Australia. So consequently, we have a noncash, nonpayable mark-to-market of roughly -- it can vary, but this quarter, it was roughly about over INR 1,000 crores. So consequent to that noncash, nonpayable mark-to-market, there is a proportionate increase in -- because of reporting requirements in the interest to INR 2,000 crores -- finance cost to INR 2,141 crores. Please note, out of the INR 2,141 crores, roughly INR 750 crores to INR 770 crores of that is noncash, nonpayable MTM only. So the actual interest cost in cash is INR 1,390 crores only. So I just wanted to clarify that because we've seen some of the questions because there was a delay in putting our presentations on to the website. But if you go to our -- the equity presentation, earnings presentation, which is on the website, and if you go to Page 28 of that presentation, you will see in the gray shaded area for clarity of investors, we have highlighted that clearly. And I just wanted to make sure that investors/analysts do not get unnecessarily worried about this. And we will make sure that we clarify this appropriately as a comment always in the future, so it doesn't cause any unnecessary confusion. Continuing on the Adani Wilmar transaction. During the quarter, we agreed for an option agreement with respect to Adani Wilmar JV. Subsequently, we launched an offer for sale and reduced our stake by 13.5%. Further steps of transferring the remaining stake of 30.4% will be taken as per the agreement. Just to give you a highlight, Wilmar contributed roughly -- Adani Wilmar contributed roughly about INR 250 crores to our -- as a cash after tax number to AEL. To highlight this transaction and the benefit of this transaction for AEL shareholders, the post-tax equity proceeds of this transaction will be roughly INR 14,200 crores, which will enable Adani Enterprise to invest up to INR 70,000 crores in its core infra businesses at a rate of return of what we earn, which is around about 15% to 18%. It will enhance EBITDA of Adani Enterprise by INR 11,000 crores and a cash after tax of roughly INR 5,000 crores. So we lose a cash after tax of roughly INR 250 crores, and we will -- our new investments will result in a cash after tax of about INR 5,000 crores. It's a 20x improvement in the actual cash after tax post this transaction. So massively accretive in terms of earnings, EBITDA, cash flow for Adani Enterprise shareholders. Coming to project and operational updates on major businesses. I'm pleased to inform that Adani wind manufacturing business of ANIL has also listed 3.3 megawatt wind turbine in RLMM. Now we have four turbines listed, two of 5.2 size and one of three and then the latest one, 3.3. In AAHL Airports, during the quarter, as you might have seen reports, Navi Mumbai Airport successfully conducted the first commercial flight validation testing. Mumbai Airport is now the first airport in India and third globally to achieve Level 5 accreditation, distinguishing it as a leader in passenger satisfaction. Adani Airports further added 14 new routes, 4 new airlines and 9 new flights during the quarter across all of its operating assets. On our commitment to ESG, we are pleased to inform you that during this quarter, AEL has secured sector-leading net score of 63 out of 100 in the S&P Global Corporate Sustainability Assessments for year 2024. This marks a significant improvement from our previous score of 49. AEL has now been ranked among the top 5 companies globally in the ESG performance out of 180 sector peers globally. I hand over to my colleague, Vinay, to go through the mining services portfolio.

Thank you, Robbie. Good afternoon, everyone. As far as the mining service business is concerned, Adani Enterprises Limited is the pioneer of MDO, which is mine developer and operator concept in India with an integrated business model that spans across developing mine as well as the entire upstream and downstream activities. It provides the full service range right from seeking various approvals, land acquisition, iron ore, developing required infrastructure, mining beneficiation, which is washery and transportation to designated consumption points. Our success is underpinned by a commitment to excellent risk management and sustainable mining practices. The company is now MDO for nine coal blocks and two iron ore blocks. During the quarter, the dispatch volume increased by 55% to 11.8 million metric tons. The revenue increased by 67% to INR 856 crores and EBITDA increased by 148% to INR 354 crores, in line with the growth in volume and improved revenue mix. As far as the IRM business is concerned, integrated resource management business, we have continued to develop business relationship with diversified customers across various end user industries. We remain #1 player in India and endeavor to maintain this leadership position going forward. Over the past couple of years, the IRM business has been exploring ways to tap into the newer market segment through initiatives like the IRM portal, which is e-portal for the online trading of natural resources. Also by leveraging technologies for faster and more reliable supplies, the portal has ensured ease of doing business for retail customers, leading to a larger market share for AEL. IRM continues to target a balanced customer mix of retail and public sector enterprise customers. During this quarter, the volume during the current quarter stood at 12.1 million metric tons. The revenue from IRM business stood at INR 9,562 crores and EBITDA stood at INR 745 crores. Under the commercial mining, where we have tenement block in Australia, Carmichael mine, the production increased by 14% to 3.3 million metric tons and the shipment increased by 7% to 3.2 million metric tons during the quarter. Now we are open for the Q&A.

[Operator Instructions] We have the first question from the line of Mahesh Patil from ICIC Securities.

So my question is on the Navi Mumbai Airport. So if you could just highlight the current status of this airport. And the follow-up question would be in initial days when till the tariff gets decided, how will be the revenues booked, the aero charges here?

I think the status is we are pretty much on track. They -- because of logistics and everything, they are trying to formalize the formal launch date and which will sometimes be in April. Now there is -- the tariff order will get determined. But in the meantime, we are able to charge provisional tariff and it will be done on the normal basis of provisional charge in the meantime. And that is a well-established process, which we've already filed and we have that -- it is -- we went formally -- once we receive clearances in about March, we will -- you will see that we'll highlight those numbers in our May presentation post the annual results. But that -- all of that work is going on schedule. We don't expect any delay in any of that process.

Okay, sir. And sir, another question is on the solar manufacturing side. So how do you think about solar manufacturing? What's the order book currently? And how do you think about the U.S. market given the recent events that have happened?

I think there, we are pretty much at our current run rate of about 1 gigawatt. So we are pretty much at full capacity there already. Eventually, as we have already said before, the final target is to have 10 gigawatt of capacity. But today, our actual capacity, we are at practically at 100%, which is roughly about 4.5 gigawatt annual. No near-term changes in that and no near-term changes in the forecast, we expect to run at about gigawatt per quarter of sales.

Okay, sir. And sir, on the U.S. market, how do you see your U.S. market in terms of exports?

No real dramatic change there. We -- our mix will continue as we are. But we don't expect that because it's a largest market, although there's a lot of noise, but it's the largest market. So it doesn't -- we are a very, very small part of a very large market. So it doesn't change much from that basis, very limited changes.

We have the next question from the line of Prateek Kumar from Jefferies.

I have three questions. Firstly, on your airport EBITDA has moved from INR 744 crores in Q2 to INR 1,100 crores in Q3. How is this EBITDA change in Mumbai quarter-to-quarter and the 6 airports quarter-to-quarter?

We can take this question specifically on notice. We have the detail, but I don't want to just give you a rough number. Prateek, if you don't mind, we can -- we'll put this number up as a note and we'll share with you. But largely, it is because our RAB assets have come online in our six non-Mumbai airports, plus the change in the non-aero growth in non-aero is driving this number to INR 1,100 crores from the INR 743. So we can do the detailing as you request. And we have the numbers, we'll provide that as a separate answer if you -- we note it as an FAQ and we'll share it.

And the impact of tariff orders on five airports is now completely baked in this quarter or like more of it is be expected? I know for one of the airport, it's still not there. And of course, for Navi Mumbai it's not there. But yes, I mean, for remaining five, it's all baked in.

Five Airport, Prateek it's based in this quarter. So in this quarter's numbers, you see the impact of the tariff change.

Right. And in terms of that Adani Wilmar deal, while 13% stake has been sold already, the remaining 30% stake is expected to close within this financial year?

It is largely -- the agreement is done. The agreement is subject to various antitrust approvals, the competition approvals. Now they generally can be completed within sort of 6 weeks to, say, 30 weeks. So we expect somewhere in that range that would -- all the competition approvals will be completed.

All right. Thirdly, on your leverage position. So in this quarter, we have not given the net debt number for quarter ending because we have not given cash number. What is the net debt number or cash number, whichever number that you can give? And third question is the CapEx for 9 months and the full year CapEx target for the company?

No. We have given the number. If you go to our earnings presentation on Page 31, you have -- we have given the number INR 33,171 crores, which is a noncurrent debt -- external debt number provided for and which is -- which was for March '24 and then December, net external debt, INR 46,858 crores is provided for. It's on Page 31 of the presentation.

Yes. So it is external debt, but it is not net debt. So I was asking about the cash position, which was reported as Yes. I mean I was asking about the net debt position, which is gross debt minus cash position and not talking about external debt. Maybe I can take that offline. But on CapEx...

Just one second, please. We'll give you a number. Just one second. The net external debt is -- noncurrent debt is INR 46,858 crores and cash on balance sheet is INR 5,800 crores.

Right. And the CapEx is targeted for this year and 9 months CapEx, how would that stack up?

So in the CapEx, the only CapEx that we have a slight variation because of various approvals, et cetera, is related to the PVC project and a slight timing change in the green hydrogen ecosystem of about INR 4,000 crores and in the PVC of about INR 7,000 crores. So aside from that, INR 11,000 crores, our CapEx on rest of the business is on track. So we had highlighted guideline of around about INR 80,000 crores and our planning is at [ INR 69.562 crores ].

Guideline for this year was INR 80,000 crores, your target for [ INR 69 crores ] like 9 months CapEx would be how much?

Two variations. INR 7,000 crore variation in the PVC project and about INR 4,000 crores timing difference in terms of just when we execute currently where the prep work is going on. So there's a timing difference of about INR 4,000 crores in the ANIL ecosystem, green hydrogen ecosystem.

Yes. And sir, the 9-month CapEx would be how much?

So the 9 months, we are at roughly around INR 21,000 crores.

Okay. So around over like INR 50,000 crores is expected in like last quarter, that's the expectation.

I will give you the number. What will not come in due to timing difference, what will billing, everything, what you will see is that out of that, roughly the INR 28,000 crores of the ANIL ecosystem will not come in this year from accounting perspective. So that is one big number. And roughly against the number, roughly about because of the way we will complete, formal completion of Mumbai, Navi Mumbai Airport will take place in April. So consequently, that number will also come up next year. So this year, that number will be around about INR 11,000 crores. So INR 40,000 crores is just these two timing differences.

Okay. So maybe like this year's finance reported CapEx might be INR 30,000 crores eventually versus 9 months of INR 21,000 crores?

Correct. A little bit -- that would be the correct number because then next year, Navi Mumbai INR 11,000 crores to INR 12,000 crores added simply because of the fact that the closure will be reported in April. And then consequently, as we start on the An ecosystem, that those numbers will come up in the next year from accounting perspective.

We have the next question of the line of Naman Jain from Kotak Institution Equities.

Yes. Actually, I have a few questions primarily on the ANIL ecosystem. Firstly, there has been a sequential drop in exports when it comes to modules. So if you can elaborate on that? Second, how do we see the realization in the domestic DCR market? And what's your view going forward? Third, the 10 gigawatt target, which you are looking for, is this still 2028? Or are we preponing that?

I think just a 10 gigawatt is as originally planned. It would not be preponed. Until and unless they change, if there's a change, we will update. In relation to the sequential change, that is the -- that's how the customer scheduling worked. And as the scheduling washes through, the numbers will come back to the normal schedules that the customers have. So that's largely just the ordering schedule of the customers for the overseas export orders.

Sir, and the view on the DCR market, the realization right now and how do we see it going forward? Because we saw a drop in EBITDA margin to this quarter. So has there been some pressure in the domestic market?

So I think, if I understand your question correctly, the margin between DCR and exports roughly in single digits, low single digits. So there is no significant -- it doesn't significantly alter the EBITDA profile of the business in terms of DCR or exports at the moment.

Okay. Got it. Got it. And just one last question. If you can share the WTG sales and EBITDA for the year, that will be helpful.

Yes. So, WTG, the wind manufacturing, the total income for the year was -- 9 months is roughly INR 1,700, and EBITDA is around -- actually close to INR 340 crores.

We have the next question the line of Sarang Joglekar from Vimana Capital.

Just wanted to get some idea on the solar manufacturing. So in the domestic side, is it the same is through to the group company or out of external?

Solar is external. Solar modules is external. Wind turbines is largely to AGEL.

Okay. Got it. And in the external market, just wanted to understand if the sale is usually through channel partners distribution to the retail market or to the EPC players? And I mean, roughly, what is the size of this retail market that is growing, for example, rooftop solar?

For us, it is both the retail plus the utility market. We'll take this question as an FAQ and come specifically on the module mix in the domestic market, we can come back to you.

We have the next question line of Deval Shah from RBSA Investment Managers.

Sir, my question pertains to the solar manufacturing side. So while we have reported revenue growth of 38% and EBITDA of 34%, and on subsequent slide, it is mentioned that the realization and the operating efficiency both has increased. So just wanted to understand, so is it because of the higher proportion of the WTG, which has reduced the margin or I would say, diluted the margin?

Just give us one second. I think the margin question is, if you go back to our previous presentation, the margin largely is in line with what we had indicated at that time that the excessive margin of previous year will not be continued largely because of the fact that the realization of the modules is now more normalized than the number that was there previously. But not related to -- specifically to the wind turbine as it increased this percentage.

Okay. So if I consider the normalized scenario, the commentary says that the realization has improved and the efficiency has also improved for the solar manufacturing. So it's margin accretive in the normalized scenario?

Correct. Correct. And that's likely to continue in the future as more and more indigenization keeps happening.

Okay. Okay. And sir, just on the clarification on the CapEx side, which you have mentioned and connecting that with your slide on the AWL sales where you have mentioned how the cash would be invested. So I understand that INR 78,000 crores of what we are planning to invest is inclusive of the projects which we are considering like the green hydrogen ecosystem and all?

Yes. Those outcomes doesn't change. It's just that like, for example, one of the things that has occurred is like Mumbai Airport is relatively complete. It will formally complete in April. So the numbers going to come up in that period when it completes. Then the timing -- similar timing difference is there in ANIL ecosystem. So more or less, the -- we are not -- we generally don't assume and we don't forecast on potential CapEx that we might do. These are all known projects that we have already highlighted.

Okay. Okay. That's the segregation I was looking at. And sir, so INR 80,000 crores, which we earlier said, so this year, we will be ending by spending only INR 30,000 crores. I understand the accounting difference, but this year, the spend would be INR 3,000 crores.

Yes. On books, you will see a number on that, yes.

We have the next question the line of Dhananjay Mishra from Sunidhi Securities.

So in terms of our ongoing CapEx, so in view of a slight shift on CapEx on ANIL ecosystem front and then we are expecting close to INR 10,000 crores again from [indiscernible] next year, and INR 70,000 crores, we can go with that. So our QIP plan for equity raising fund that will -- do we need really in FY '26 or it will be -- it can be delayed in FY '27.

That is largely because we -- as a process, we take enabling approvals. But you're right, in the short term, no, there is no specific need. But our run rate equity requirements will continue broadly. But there's no -- we will renew that approval if we required, but no specific additional need outside of what we have already raised.

Okay. So FY '26, as such we don't need to raise as per our current schedule of CapEx? Will be concluded or Adani Wilmar?

Adani Wilmar will conclude. So yes, we said that we will raise about $2.5 billion. So that's roughly what we have raised $0.5 billion in QIP and about $2 billion here, roughly.

Okay. So there is a room for $1 billion more.

But no, we don't have an actual timing, but yes.

We have the next question from the line of Bhavik Shah from MK Ventures.

So what I understand is the current year CapEx is at around INR 30,000 crores, INR 32,000 crores. So can you help us with the CapEx for next 2 years, say, FY '26 and '27? How much will be our CapEx for next 2 years?

I think this -- we will not be able to specifically answer this question for this quarter because we update that annually. It's more -- if you -- I mean, we can attempt to give you a broad, but I don't want to hazard a guess until we complete our process to go through the planning for the next 12 months, which would be in May. So I will more accurately be able to answer this question in May when we have all the necessary information from a planning perspective.

Okay. Okay. And sir, do we have any major loan repayments coming up in, say, FY '26? What will be the quantum of loan repayments in FY '26?

We are normal. The short-term debt is very, very limited at AEL. So, at maximum, it would be around INR 3,300 crores, for which the cash held at AEL is INR 5,800 crores.

Okay. Okay. So basically, what I understood from the previous line said around INR 39,000 crores, INR 28,000 crores from ANIL and INR 11,000 crores of airports will be spent in next year, right?

Yes.

So we'll -- that will be the minimum CapEx requirements of...

No, no. It will be booked in next year. ANIL will be spent and airport will be booked.

Okay. Okay. Understood, sir. And sir, see, other businesses, like say data center or in [indiscernible] terminal, Carmichael, do you need any specifics there?

No, data center other than what's flagged, same Carmichael and all. No, no all CapEx planned.

Okay. And after Navi Mumbai Airport, will the other airports also need CapEx?

Navi Mumbai itself will need CapEx.

Okay. So that will begin after the Phase 1.

Yes, yes, after first year itself, new CapEx will start.

Okay. And sir, from the copper, how much CapEx is required in next year for copper business?

Copper, CapEx is mostly done. It's just -- the business is now ramping up. And we expect the business to ramp up in the next financial year fully.

Okay. So we expect to like hit peak utilization next year itself?

No, it's -- could you just repeat your question, please?

So we expect to hit peak utilization levels in copper business next year itself?

Next financial year, plus/minus, say, the normal scheduling changes, but towards the first quarter of the following year.

We have the next question from the line of Giriraj Daga from Visaria Family Trust.

So my first question is on the IRM side. So we are seeing material drop in the volume and earnings per se. Like would you say this is just a one-off thing and it will come back to the normal run rate or for next few quarters, we will settle somewhere in between?

So as far as the IRM business is concerned, as we have been saying in the past also, we consider it also as a service function where we are actually supplying the fuel need of our customers. So considering that there is a good domestic coal availability for customers, the market has come down. So if you really see how things are happening in India in terms of domestic coal production and the power demand, it will have similar type of figures for at least a few quarters, but then it has to go up. And also, as I said in the statement, we are trying to see how we are going to have more into services like by adding SagarMala or by adding some other activities where we can take the advantage of being there in the service function for last 2 decades. So you will see a volume getting back. And -- but that will have a composition of coal trading versus plus services.

Okay. Understood. Second, my question is on the CapEx. So just to get myself clear. First, we are talking about ANIL ecosystem CapEx where we'll be consuming internally the module and the wind turbines. So that INR 30,000 crores roughly roundabout number, that will come when we'll start consuming for green hydrogen projects, right? So are we looking to -- for next year.

No. I think the CapEx on the manufacturing ecosystem is completed. Mostly, it's just the final bits of completion of the ingot wafer is going on. And at some point in time, the foundry will start. So that's the only CapEx left. There is ecosystem CapEx, which is we encourage that, but others also invest in that. It's not just us. Now wind turbine, yes, mostly of the wind turbine capacity is being utilized by AGEL at the moment because it's a specific 5.2 megawatt wind turbine is not available anywhere else. So -- and AGEL's needs are quite large. The CapEx that ecosystem will happen is that when we move towards the generation of the green electrons for the production of green hydrogen. So the site work and all the prep work is going on at the moment. As that -- when that picks up as we -- for say, just not our sister firm that Adani Green, once that picks up, then the CapEx happens quite rapidly on the site prep and all those work goes on. So once that starts, which is the ecosystem for the production of green hydrogen, then the CapEx will pick up rapidly.

Understood. So what my question is that, so currently, we are selling, let's say, 1 gigawatt of module every quarter. And if we, let's say, sell 1 gigawatt from FY '26 entirely 4 gigawatt, then the ecosystem CapEx will still be very low, right, next year also?

Yes, yes, yes. Yes, it is. Because manufacturing part of the green hydrogen ecosystem, which is ANIL's manufacturing area, that investment we've already completed.

Correct. So as per your estimate, when we will stop selling modules in the external market and consuming basically for our ecosystem, when we'll hit that time line?

No, modules, we'll continue to sell externally a very large amount. But overall, the -- I don't think that once we -- we will also have this module capacity itself will also rise. So it will never be that we will be consuming the modules ourselves only.

Okay. Just next year, we will have module capacity what 10 gigawatt is the target for FY '28, right?

Yes, 4.5.

4.5. And how is the schedule for FY '27? Like will we reach there? Will be the combined CapEx of 10 directly to FY '28?

That's most likely '27, '28. Yes.

So next year, next year also cash CapEx will be somewhere about INR 30,000 crores or INR 35,000 crores, right? Because ANIL ecosystem CapEx will still be a year away from that?

Correct.

We have the next question from the line of Prateek Kumar from Jefferies.

Question on commercial mining. So there's this large PBIT loss, which has been reported in this segment. This is largely to that MTM loss, which you said in the beginning. Is that right? And also, what is the segment EBITDA during this quarter in this segment?

Just on the MTM, it's not an MTM loss on any borrowing or any external debt or external contract we have. It is just basically an artifact of how when we invest equity overseas, all of that is not just invested as pure equity, it is also invested as shareholder loans. So we booked the movement on the shareholder loan. It is not payable, it's noncash. And so it's just that item. And the second part of your question, segmental, the Carmichael mine financials, just so that you -- income was roughly INR 5,400 crores for the 9 months. EBITDA, INR 763 crores.

So even the EBITDA is like sort of negative for the same reason which you mentioned for the quarter?

Yes, that is largely because of the MTM, the shareholder loan.

Okay. I have like a couple of other...

Other item in the finance cost. That's why it goes that way.

Okay. On data centers, we have -- I see that we have around 270 megawatt of capacity under construction, and we have order book of around 210 megawatts, while the commercialized capacity is only around 30 megawatts. How are we -- like in context of current environment around chip prices, which may get impacted because of the new thing which has come up, like how are the contracts for us like work? Like we have talked about earlier 210 megawatt of order book. So how are the chip contracts like sort of work here? And how do you see...

Prateek, that is already customer-driven. So all the contracts are afoot. There's no change in that. We have roughly 210 under near-term completion. So that will be done. And we just another roughly 20 megawatts came online this quarter itself. So we -- there's no change in the construction and development plan of that business.

[Operator Instructions] We have the next question on the line of Deval Shah from RBSA Investment Managers.

Sir, I just need a clarification on the PVC. You mentioned that the project has been -- the INR 7,000 crores of CapEx, is it postponed or there is a change on the plan. So just wanted to understand on the PVC side of the CapEx.

It's just that the -- given all the approvals required, et cetera, construction, the scheduling means that a lot of that CapEx will come in the following year rather than this accounting year from booking perspective.

It's just the timing difference. For PVC, it's the timing difference.

It's timing, yes. It will get -- the project is scheduled to complete as we have outlined in calendar '27.

Okay. And sir, just wanted to understand your thought on the -- obviously, on the rupee depreciation. So what is its impact -- what management is foreseeing impacting our debt profile and our capability on fundraising as well because of the INR, USD volatility?

No, we plan for what is called a long-run volatility curve of roughly about 4%. So if you look at the last 10 years or any 10-year period in the last, you see a volatility curve around about 3.2 to 3.7 independent of what happens in 1 or 2 years. But because we cover that volatility curve over the 10-year period, there is no impact on our finance charges because of the rupee volatility.

Okay. So as I understand, so in your projections as well, so whenever you are planning for the overseas debt, external commercial borrowings or whatever, we are taking the 2% depreciation impact in our projections, probably in the linear or some of the other models, but we are taking -- considering the 4% depreciation.

We assume that, that occurs. So consequently, we plan that way already.

Thank you. That was the last question. I now hand it over to the management for closing comments.

Mohit, thank you for organizing this and to all the participants in Q&A. In terms of investors, if there's anything further, you via Mohit, you can please reach us. We will update a few FAQs that we have noted down. We'll upload them and then we will also send to Mohit and so that can be distributed to the people who ask the questions. Thank you.

Thank you. On behalf of Adani Enterprises Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.