Adani Energy aims 16% rise in FY24 capex to ₹7,000 cr

livemint.com:

₹7,000 crore in this financial year, a more than 16% rise from the previous year, said Anil Sardana, the company’s managing director and chief executive, in an interview. The company is planning to increase its capital expenditure outlay by about 10% every year, he added. “We are sitting with a huge order book.

Close to ₹20,000 crore of successful orders on the transmission side; ₹5,800 crore for smart metres, and ₹5,600 crore already sanctioned by a regulator from Mumbai. We will be targeting about ₹7,000 crore, plus-minus ₹500 crore, for this financial year. And, that will be growing by 10% every year." In FY23, AESL’s expenditure was at over ₹6,000 crore, he added.

The Adani Group company’s capital expenditure plan is relevant for two reasons: One, it comes in the wake of the Adani Group facing challenges with its valuation and finances after a report by a US-based short seller; and two, such investments will boost private sector investments in India, which has been lagging. In January, a Hindenburg Research report had raised concerns over Adani Group’s financial reporting practices, leading to implications on the group’s stock valuations. Despite this, Sardana is optimistic about the company’s capital expenditure prospects, and emphasized the company’s goal of maintaining a healthy debt to Ebitda (earnings before interest, taxes, depreciation, and amortization) ratio to retain its investment-grade status.

AESL’s future plans also involve the rollout of smart meters, with applications submitted for three licences. The first licence aims to expand operations from Mundra to cover the Kutch-Saurashtra area. The second focuses on the Navi Mumbai area, that already has three million customers in Mumbai.