Adani Enterprises (AEL), the parent company of the Adani Group\u2019s airports business, plans to spend Rs. 26,000 crore in capital expenditure over the next five years, most of which will go towards expansion of its airports business.<\/p>\n
AEL reported a consolidated net loss of Rs. 10.06 crore for the quarter ended September 2019, compared with a net profit of Rs. 79.6 crore in the same period last year. This was primarily on account of an exceptional write-off of Rs. 129.73 crore due to the commercial unviability of one of the projects of AEL\u2019s oil and natural gas exploration subsidiary.<\/p>\n
Jugeshinder Singh, chief financial officer, AEL told reporters, \u201cOur total capex commitment over the next five years in this business is in the order of about Rs. 26,000 crore\u2026 Maximum (of this amount) is for the new capex in airports only.\u201d However, Singh said the company was hoping to finalise a funding plan by March 2020.<\/p>\n
Singh on Tuesday said that the company will have a clearer picture on funding of the capex for the airport business once the concession agreements with Airports Authority of India (AAI) are finalised.<\/p>\n
\u201cWe are obliged to spend approximately Rs. 7,000 crore in the airport capex, plus there is the upfront payment to AAI\u2026 The concession agreements are still firming up, but we expect the (revenue sharing) arrangement (with AAI) to be 60:40, 65:35, 70:30, that will depend on the business case that each airport develops. So, we will have better clarity probably around March,\u201d he said.<\/p>\n
Consolidated operating income of AEL for the September quarter came in marginally lower on a y-o-y basis, at Rs. 540.47 crore. Operating margin, which was up 35 basis points y-o-y, stood at 6.38%. Revenue from operations on a consolidated level declined 7.5% y-o-y to Rs. 8,464.19 crore, while total expenditure stood at Rs. 8,571.75 crore, down 7.5% y-o-y. Adani Enterprises currently has a debt of Rs. 10,580 crore on its books, of which the term debt is around Rs. 5,300 crore, Singh said.<\/p>\n
On the issue of acquisition of Bidvest\u2019s 13.5% stake in Mumbai airport, Singh said, \u201cWe will review our stand post the conclusion of the arbitration process that is underway\u2026 we will formulate a strategy based on that (arbitration proceedings and high court\u2019s stand).\u201d The group has been trying since March to acquire stake in Mumbai International Airport (MIAL).<\/p>\n
Adani Properties faced a recent setback when the Bombay high court refused to grant interim relief preventing Bid Services Division (Mauritius), a minority stakeholder in MIAL, from transferring its shares to third parties.<\/p>\n
The Adani Group in February won bids to operate six airports currently run by the AAI. , including Lucknow, Ahmedabad and Jaipur. It has also recently submitted a bid for the proposed Jewar Airport.<\/p>\n","protected":false},"excerpt":{"rendered":"
Adani Enterprises (AEL), the parent company of the Adani Group\u2019s airports business, plans to spend Rs. 26,000 crore in capital expenditure over the next five years, most of which will go towards expansion of its airports business. AEL reported a consolidated net loss of Rs. 10.06 crore for the quarter ended September 2019, compared with a net profit of Rs. 79.6 crore in the same period last year. This was primarily on account of an exceptional write-off of Rs. 129.73 crore due to the commercial unviability of one of the projects of AEL\u2019s oil and natural gas exploration subsidiary. Jugeshinder […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-300750","post","type-post","status-publish","format-standard","hentry","category-civil-aviation"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/300750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=300750"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/300750\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=300750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=300750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=300750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}