Ladies, and gentlemen, good day, and welcome to Q3 FY 2024 Earnings Call of Adani Enterprises Limited, hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Natarajan from Antique Stock Broking. Thank you, and over to you, sir.
Thank you, Tushar. Good evening, everyone. On behalf of Antique Stock Broking, I welcome you all to the 3Q FY 2024 Earnings Call for Adani Enterprises. We have with us from the management team, Mr. Vinay Prakash, Director, Adani Enterprises, and CEO of Natural Resources, Mr. Robbie Singh, CFO, Mr. Saurabh Shah, Finance Controller, and Mr. Manan Vakharia from the Investor Relations. We will start with the brief opening remarks from the management, followed by the question- and- answer session. Thank you, and over to you.
Hi, this is Robbie, CFO of Adani Enterprises. Ladies, and gentlemen, I appreciate your presence today as we discuss Adani Enterprises quarter three and nine months for the financial year 2024. So that you can navigate through the results easily, AEL is a flagship incubator of company of Adani portfolio. Its business can primarily be divided into two tax segments, the new and emerging businesses and the incubation portfolio. Along with its established businesses in the mining and metal space. AEL's incubation portfolio include three major emerging and scalable core infra businesses: green hydrogen, airports, roads, under our fully owned subsidiaries, ANIL, Adani Airports, Adani Roads, respectively. While the established businesses comprising of mining services, commercial mining, IRM, and almost ready copper business.
We are delighted to share that in the past nine months, our three emerging businesses demonstrated significant growth, contributing 22% to total income and 45% to overall EBITDA. Total income of these three businesses increased sharply by over 92% to INR 17,067 crore. Total EBITDA increased by 105% to INR 4,339 crore, and total profit before tax increased to INR 1,875 crore. Higher contribution of these emerging businesses also boosted overall profits. The nine-month EBITDA of AEL increased by 58% to INR 9,592 crore, while profit before tax rose by 107% to INR 4,318 crore. Consolidated income stood at INR 77,702 crore. Update on our major businesses. Adani New Industries Green Hydrogen Ecosystem.
Our target of 10 GW of green hydrogen integrated manufacturing ecosystem is progressing well. We are now ready to commission India's first ingot and wafer line of 2 GW, which will go into the solar manufacturing businesses of AEL. Already established 4 GW module capacity. Just to repeat, the ingot wafer line will primarily be for the existing 4 GW of solar module line. We are also ramping up our recently commissioned green manufacturing. We produced 15 sets and have an order book of 142 sets. ANIL has received the letter of award from Solar Energy Corporation of India for setting up annual electrolyzer manufacturing capacity of 198.5 MW. Airports portfolio. During the quarter, 19 new routes, nine new airlines, and five new flights added across all seven operational airports.
Passenger movement at our airports increased 23% to 65.7 million, and now tracking an annual number of over 85 million. Greenfield Navi Mumbai project is on track for completion in December this year. Phase one of the city side development is commencing across 90 acres, 98 acres of land at the five airports. Finally, in our road portfolio, four out of the 10 projects are now more than 50% complete and in line with the target schedule. Last but not the least, ESG is integral to our core plan and is embedded in our decision-making. I'm glad to share that airports have been honored with Environmental Excellence Awards in 2023 for their strong commitment to sustainability and outstanding practices in ESG. With this, I hand over to my colleague, Vinay, to take you through the highlights of the primary industry portfolio. Vinay?
Thanks, Robbie. As far as mining services is concerned, Adani Enterprises Limited is the pioneer of MDO 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, developing required infrastructure, mining, beneficiation, and transportation to designated consumption points. The company is MDO for eight coal blocks and one iron ore block. These projects are located in the states of Chhattisgarh, Madhya Pradesh, and Odisha. The company has serviced its contract, and the quantity delivered during the quarter were as per the schedule. During the nine months, the revenue from mining services was up by 5% to INR 1,611 crore, and EBITDA was up by 4% to INR 633 crore.
IRM business, Integrated Resource Management. In IRM business, we have continued to develop business relationship with diversified customers across various end-user industries. We remain number one player in India, and endeavor to maintain this leadership position going forward. The volume during quarter three, FY 2024 increased by 31% to 20.8 million metric ton. EBITDA for nine months increased by 21% to INR 3,526 crores on account of improved realization on year-on-year basis. Commercial mining. Under the commercial mining, we have, Carmichael mine in Australia. Their production increased by 46% to 8.3 million metric ton, and the shipment increased by 62% to 8.1 million metric ton during nine months of FY 2024. The company is also having seven domestic commercial mine blocks.
These projects are in the state of Maharashtra, Chhattisgarh, MP, Jharkhand, and Odisha. In terms of our primary industry incubation, the physical progress of copper project is more than 75%, and it is expected to achieve commercial production in March 2024. We'll be open for questions.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prateek from Jefferies. Please go ahead, sir.
Yeah. Hi, good evening, sir, and congrats for great set of results. My question is on airport business. So how have you seen like... In last quarter was particularly benefiting from various events, including World Cup and some of the other events which happened also in Gujarat during the business events. So how is that like benefiting the airports in respective cities and particularly both on aero side in terms of passenger and non-aero side also, in terms of spend per passenger, is there any uptick which is seen or on these respective airports?
Hi, Prateek. Thank you for your question. We do not account for any events as a special numbers, neither do we track those things, because we don't believe fundamentally that's the correct way to look at our business. It's a consumer business, and therefore, our objective always remains on the long term growth and rate of both the PAX and the non-PAX. And I think it would not be correct to specifically look at events. Events can have an impact on a quarter, but not over a period of our forecast horizon, they do not contribute to the fundamental analytics, other than meeting the operational requirements of heavy traffic over that two- or three-day period.
Sure. Okay. Also, the traffic growth, how do you see, like, traffic growth for the next year? Like, passenger traffic growth, like domestic numbers have seen some moderation, like what is reported by DGCA. How do you see the traffic growth going forward in the business for the next year? And, how do we see, like, the commissioning of Navi Mumbai airport? As you said, it's on time in December 2024. So how do you see, like, the combined growth for Navi Mumbai and Mumbai Airport over the coming two to three years?
Yeah. So see, we don't, again, we don't look at traffic numbers aside from, you know, obviously listing and reporting requirements on a yearly basis. Where we underlying is that there's no, you don't look at traffic per se. What we are underlying look at is the per capita journeys by the aggregate Indian population. So currently, per capita journey by Indian aggregate is 0.1 per capita, which is, on aggregate basis, one journey every 10 years. We believe that that number will rise to at least 0.6 or higher by 2032, 2033, in 10, the next 10-year period. It can vary, but overall, that signifies a 6X jump in the overall passenger traffic of India over this period.
We also track underlying movement of what are in terms of orders. So fleet orders indicate that 700 planes that are in the Indian civil aviation fleet will rise to 3,000 by 2030. So even the fleet are forecasting a 4X rise on the current numbers by 2030. And so therefore, that is how, because, CapEx cycle of airports, be it on the land side, be it on the terminal side, be it on the air side, is a two to five year plan. So our planning always is based on how we see the airports end up in 2033, 2035, rather than next year, because that's how the CapEx cycle depends.
So we believe that India is poised for a 6X, somewhere between 4X to 6X size in the airport, based on the two indicative factors. Therefore, the quarterly or six monthly or yearly moderation in numbers do not change the investment planning in airports over the next 10 years. Any specific variations that might occur due to weather events, due to any short-term economic events, are not reflective of the underlying trend in the Indian aviation.
Thank you. This last question on airport. So there was this recent favorable order win from AAI regarding force majeure event during COVID at Mumbai Airport. What is the compensation do we expect as a reimbursement, and when do we expect this payment with us, like, relating to this order?
So effectively speaking, the order, what we had already provided for, other than that number, we will receive 1,238, so INR 1,238 crore. In terms, that's a recoverable. And we in terms of the recovery period, et cetera, we will go through later once that is clear.
Sure. I'll get back to the telecom office. Thank you.
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead, sir.
Good evening, sir. So first on the coal trading, so the numbers are very, very high in this particular quarter. Can you please comment on this? And because the EBITDA per ton, I think, is around INR 700 rupee per ton compared to what you achieved in the last few, I think, last 10, 12 quarters, numbers are below INR 500 rupee per ton. Is there something extraordinary there?
Yeah. In fact, it had happened because of our some decision which went well over and above our servicing this industry. We have a very high market share in India, and considering we are there in the complete supply chain, and the market did corrected in last six to eight months, which is visible in the revenue part. Since market was correcting and we were holding the orders, we got benefited because of our low sourcing cost, the purchase cost, which is getting reflected in the results.
Understood. My second question on Carmichael mines. Is it possible to list the details of the revenue and EBITDA for this particular quarter? Of course, I have the EBIT number, which is INR 274 crore. If you can just provide the EBITDA number, it will helpful. Yeah.
I'm not having that number handy with me.
Sure, sir.
Do you have the number handy with you? Just a second. About INR 1,020 crore is the number.
For the nine months or for the quarter?
For nine months. Nine months.
Understood. Understood that. On the coal mining front, I think we're targeting 40 million tons, 40 million tons, a few years back, and I think we're still struggling at 28 million ton. Is there any issue with the ramping of the coal product, coal mining, and what is expected at run rate, which you can achieve in FY 2025?
So we are on our target of achieving 40 million tons in FY 2025. I'll not say we are struggling. We were expecting some approvals to come in time, which, you know, when we speak about the mining in India, it's a very lengthy and a complicated process through which you have to go and get all the permission before starting a mine. So we were expecting some permissions in FY 2024, which got little delayed. But now we have all the permission, and I'm sure that, I'm confident that target of 40 million in FY 2025 is going to be likely there.
On the solar manufacturing, I think, we are already at 4 GW, if I'm not wrong, and our production has been, last year produced 1.2 GW, and this year we may end up 2.4 GW. Can you see the run rate going to 4 GW, 100% capacity utilized in FY 2025? And if you can comment something on the markets, are we exporting? How much export in this 638 MW which is sold in this particular quarter?
... Yeah, we, we expect to broadly achieve, production run rate reflective of the 4 GW capacity. And the exports, in terms of, the module sales, are now out, out of the INR 1,882 crore, exports, megawatt, exports are 1,232 MW.
Understood, sir. Thank you, and all the best. Thank you.
The next question is from the line of Brett from Cantor Fitzgerald. Please go ahead, sir.
Hi. Thank you so much for taking my question, and congrats on the results. I guess my first question was really on some of the established business profit margins. I think if you're looking at those kind of profit before tax margins, especially in IRM, it remained very strong for, you know, another quarter. Could you maybe help us understand the reasons for that improvement relative to history, where it's always kind of been a 2%-3% margin business?
Vinay, can we please address the margin update? You addressed before, but can you address for, Cantor again, please? Thank you.
Yeah. So, you know, let us discuss about this copper, this, IRM business. In IRM business, you're basically importing coal from various, countries, mainly Australia, Indonesia, Russia, Indonesia, U.S., and, South Africa, and you're selling in Indian market. The international market, which has gone up to $400 on, Newcastle, which is, which is a standard product, has come down drastically in last one year to now at $120 level, level. We were holding, certain orders in hand, and seeing that the market is getting corrected, we hold our purchase back, and, we delayed the purchase.
This is which we got extra margin over the normal margin, which normally we get being in the service industry.
Perfect. Thank you, sir. And then maybe on more just on the incubating side, and forgive me if I missed, if you have already discussed this, but on the solar manufacturing and wind manufacturing capacity, I guess, how quickly do you expect to ramp up the solar manufacturing capacity over the next year or two year? And for the electrolyzer, am I right in thinking that that would be commercialized, I guess, within fiscal year 2026?
I think on the solar modules, we are pretty much on track for the full capacity of 4 GW over the next 12 months. And on electrolyzer, yes, you are correct. It's 2026. And the Windtech is continuing, and we are pretty much on the 1.5 GW, and it's product producing at that level already.
Perfect. Thank you so much for your time.
Thank you.
Thank you. The next question is from the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead, sir.
Yeah, thanks for the opportunity, and congratulations on very good set of numbers. Sir, what is the overall CapEx plan for this year, or what will be the next year across the segment? Hello?
Yeah. I think for this year, the total CapEx plan across AEL's ecosystem will be approximately INR 33,600 crore, and we expect next year for it to jump to approximately INR 92,000 crore. The jump in this INR 60,000 crore jump is driven by a INR 50,000-odd crore jump in Adani New Industries, and a INR 10,000 crore jump in airports. Everything else will be pretty much at the run rate level.
Adani New Industries largely will be in solar segment, or it will be in-
It is across its segments. Green hydrogen will be about 6,000, downstream will be about 6,000, solar and wind power generation will take the maximum, about 30,000. And the various elements, ingot wafer, 600, the module and cell lines, 3,000, Windtech, about 1,000. So it's across the board.
In terms of electrolyzer capacity, how are we placed in terms of doing some tie-up or some whatever technology, technological thing we are accepting? Where, where are we placed right now?
I think for all technology developments, we are pretty much set already. There's no further new tie-up. Other ongoing work continues on various matters, but the Windtech, the ingot wafer, the electrolyzer, all the fundamental tie-ups are complete in technology. We, we're not anticipating anything, new in that area....
Okay. Thank you.
Thank you. The next question is from the line of Bharat Shah from ASK Investment Managers Limited. Please go ahead, sir.
Yeah. Hi, Robbie, just one thing on the airport business. While the Indian air traffic may grow four to six times, is quite conceivable, given all the fundamental strategic changes which are happening in the activity, and the way government is trending, kind of building a strong ecosystem around the air traffic activity. But, given the kind of airports that we have got, and then adding, of course, a significant addition from Navi Mumbai Airport. It's not easy to understand how our airport portfolio can achieve that five or six time kind of growth in the decade, which is upcoming.
See, our own airport CapEx plan, as we've outlined before, it just will take our capacity to 250 million. So straight off, with 3X growth will happen in the existing airports themselves. And then, the, as the further privatization takes place across the airport portfolio, that will add to this growth. So as far as we look at the investment plan across the airports, we are solidly of the opinion that we will be, in fact, comfortably be breaching and growing faster than India in our airport, like we have done in our ports business, which has grown consistently above the Indian cargo despite its market share. We have very definitive plan. We have a unique business model in the context of India.
And therefore, we believe that not only is the potential growth we will capture, we will capture the gross spend rate of the non-PAX also. So it is not 100%, on the air side, where there's a direct income impact of the passenger movement, air movement, will be less than 35% of the total Adani Airports EBITDA. 65 will come from non-PAX and non-aircraft movements and non-air side. Therefore, the bigger focus remains on the servicing of the non-PAX and or passengers prior to they entering the airport. And that number we anticipate will be at least two to three times the passenger number anyways. So there are two parts to your question. One is, so from the on the air side, are we prepared?
Yes, we have already prepared our CapEx plan already takes care of the 240 million capacity. Secondly, are we prepared for future, growth in relation to building our airport, platform further with the participation in the privatization? Answer to that is, yes, we are prepared, and it's part of our investment plan already. And third, are we prepared to access, which is a bigger thing, which is in EBITDA terms, 65% of EBITDA comes from, gross spend rate outside of the terminals, outside of the air side, landing fees, et cetera, regulatory income. Are we prepared to do that? Yes, as we have outlined in my opening commentary, our main focus is on the city side developments, and that CapEx actually is accelerated, and we will complete that by first phase by 2026, 2027.
So essentially, Robbie, what you are saying is, that, we are viewing that airport and aviation activity, really from a larger perspective of non-PAX revenue, and it is not the PAX movement, or traffic growth, but overall revenue growth to be derived from the aviation activity, which is where we'll score well above, where the industry would be. And in that journey, almost 2/3 would come from non-PAX or relatively less capital-intensive activity, and only a third of that revenue would be more like from the, PAX. So, essentially, the character of our aviation efforts would be less capital-intensive and non-PAX, driven activity. The total growth rate, without even counting acquisition that we make it on the way, overall will outgrow the industry revenue growth.
Correct. And I think I'll just clarify, so there's no misunderstanding. The air movement growth is reflected in the airside charges. And if you so we anticipate that whilst we will benefit from air movement and therefore airside charges, but the objective always remains to provide the best experience to anybody who interacts with the airport space. Now, whether that is city developers who actually are not the passengers, or people who are non-PAX but are related to the passenger, they are bringing the passengers in. It could be service providers like Uber, Ola, et cetera, taxi, et cetera, or family members coming with the person to the airport, and the person's experience within the airport. And also, airport has a very large permanent staff also.
The amenities for the staff, their ability to be able to exercise some of their consumer spend within the precinct. So it goes into what we call the rental retail mixed models that you run for the type of consumer you have in the airport. So the passenger movement helps in relation to the ability in relation to the passengers and people who bring the passengers or come with the passenger to the airport. Whereas the city side and all development are actually independent of this number. They are actually reflective over the overall general growth in the spend capacity of the Indian consumer, which itself is rising very fast.
So you are benefiting not just from the air movement, you are also benefiting from the overall capacity of the Indian consumer to spend. So there are two things moving. So the question always becomes: Are you able to capture the two things? And this is what the business strategy of the airport is for us, to be able to capture two different things. So I would add to your question and say that the reason why the revenue growth and EBITDA growth will be faster is because we'll capture the non-PAX improvement in the spending pattern of the Indian consumer also.
Right. Which is exactly what I was trying to convey. But on that, if I had to put a little critical note, you see, across the entire portfolio of Adani Airports, I've been traveling one or the other place constantly. Almost in a month, I would be taking several flights, including the Adani portfolio of the airports. I'm also familiar with the fact that non-PAX overall customer wallet through the experience and services and additionality will mean less capital intensive way of extracting more profits from that traveler. But in actual experience, while... For example, I recently went to Bangalore Airport, and I definitely believe that it has materially improved compared to what it used to be earlier.
I mean, there is no comparison between the two, what it was then and now. But, in many other airports that actually experience, where you feel material difference compared to the earlier service package, while there is improvement, without any doubt, whether it is really quantum jump, I would like to put a question mark on that.
I think I'll take that as a comment, and I'll convey that to the airport leadership team that a particular comment of that nature comes. But I think what we do need to understand is that this is a 50-year business which had to be set for achieving what it needs to achieve in 2033-2035 period. It is not being set to achieve what we can achieve today. So if you are wanting to do something for today, yes, which can be done very quickly. But the aim becomes that if you look at the parts that we would want to look, we would want to check because of passengers and safety, because it's safety first.
So if you say, if you look at the benchmarks in relation to security check and queues, then virtually, whether you look at Trivandrum, let's look at Guwahati, whether you look at Jaipur, whether you look at Mumbai, whether you look at Ahmedabad, Lucknow Airport, we are—we are much, much, much ahead of where the benchmark is. Then that comes from immigration point of view. That also we track very carefully, and broadly, all airports are way ahead of the benchmark. The other part is a lot of people do travel by car to the airport, and what is the car parking experience? And then finally, the check-in. So in these areas, these four critical areas of passenger experience, which relate to one, to security and therefore safety and all.
Second, an integrated work environment, which immigration is not in our control. Check-in is in our control, the security queue is in our control. The integrated working, be it with the CISF, be it with the immigration officials, all of that is working well. So we check this, and then everything else is designed for the longer term experience, in terms of where we believe what it will look like when our capacities are set up for 240 million PAX. And that is actually a gestation issue. And as we go through this, you will start noticing from the non-PAX will start noticing from 2026, 2027 onwards, the change, because their interactions will change.
The passenger and passengers, people accompanying the passengers, they will certainly start noticing from about 2026 onwards, the material marked changes in experience. Now, what you refer to is you are also a business passenger. The specific experience related to business passengers and how they move and what their movement pattern are in the airport, that will also go a marked change as all the other services are brought into line with global standards over the next three to five years. That's why we will wait for the demerger of this business till it achieves all these benchmarks. That's why we've flagged that event between three to five years from now.
Sure. No, thanks. One last thing, Robbie. On our IRM business, which is critically dependent upon feeding India's growing energy needs, and therefore sourcing efficient coal trading and distributing that commodity. But increasingly the picture that you get from policy perspective is that coal remains one of the important items in the import bill of India. And like all the import items of India, are receiving critical attention to how to minimize or reduce, or in fact, substitute them by export rather than import. The policy thrust appears to be that at some stage, imported coal may look to be a thing of the past or materially a thing of the past. How does it affect our IRM business, if this were to transpire?
Should I take it?
Please, Vinay.
Yeah. So when we think about the IRM business, I think first of all, we need to understand that we are in this business for last now 25 years. And in last 25 years, we have actually created a sort of specialization in moving coal from X mine to shipping, to port, to handling, rail and road and everything. So it is not going to be only the imported coal, you import from other countries and give it to the Indian customer. It is also going to remain a service function for us, where we are doing a lot of RSR movements also.
Now, as far as import is concerned, in India, even though the target has been set to make import zero long back, but on an actual basis, on a practical basis, it is not going to be zero anytime in the future also, for two reasons. One, the first reason is that considering that the Indian coal is having a high ash, you need to import, you need to import coal of low ash to blend and run your power plants, which are designed at a lower ash. Secondly, there are a lot of coastal-based power plant, which are actually designed for low ash only. You talk about Tata, you talk about many plants of NTPC, many plants of private sector, they are designed for low ash.
Number third, for the power plants, which are actually very near to the coastal belt, it is always going to be a difference between the rail freight which or road freight, which they are going to have from the hinterland of country, to their place, getting compared with the ocean freight and handling from Indonesia, Australia and South Africa. And if your prices are good in international market, right in international market, you'll always find that import coal are going to be competitive. So if you ask us, we are very clear that even next five year, 10 years, 15 years down the line, the market, import coal market will remain in excess of 150, 160 million tons.
Got you. Now, thank you. That's very helpful. Thank you. I have one more question, but I'll wait in the queue.
Thank you. The next question is from the line of Mohit Kumar, from ICICI Securities. Please go ahead, sir.
Yes, sir. Thank you. Thank you for the opportunity once again. So my only one question, one clarification. You're talking about INR 50,000 crore in new industries, and clean hydrogen is a significant part. And is it fair to say that we are looking at targeting 0.3 million-0.4 million ton per annum capacity? Is it possible to also tell us that, you know, are we looking to export green ammonia? Is that a fair assessment?
I think overall we'll come up, come with a much more detailed outlook on this, towards September of this year. But the aim, our first phase itself is 1 million ton. It will happen in a modular way. But we, we do not have a subscale plan. With 1 million ton and then going up to 3 million tons, is what we've always announced, and it remains that way. We will detail out some of the, some of the planning in, in regards to downstream products, whether we stop at ammonia or it will go further to fertilizers of that side.
Understood, sir. Thank you, Robbie. Thank you.
Thank you.
Thank you. The next question is from the line of Prateek from Jefferies. Please go ahead, sir.
Yeah, thanks for the opportunity again. Sir, you gave this overall CapEx going from INR 34,000 crore to INR 92,000 crore. Can you give, like, business-wise CapEx for these two years, for the company? I mean, you told about INR 50,000 crore for ANIL, for next year, but, what is the business-wise CapEx, let's say, for maybe top five segments, in FY 2024 and 2025?
Our main CapEx is in green hydrogen and airports, which of the INR 90,000 crore, which is practically nearly 80% of that just goes into these two segments, airports and green hydrogen. We have the rest is, the roads will have sort of the same CapEx from this year, which is about INR 10,000 crore. Everything else is about INR 6,000 crore. Three big segments are infra, incubating assets.
Okay. And on your solar module segment, do we have, like, what do we see as, like, FY 2025 end capacity for solar modules and Windtech segment? I know electrolyzer is expected in FY 2026 only, but what would be the year-end capacity of FY 2025 for solar module and Windtech?
4.5 GW and 1.5 GW respectively. Gigawatts.
Okay. So, so that 10 GW will be scaled to only in FY 2026, even for solar?
Yes, yes, yes, yes.
Your margins in solar segment has remained very strong, this quarter, maybe stronger than past quarters. So there have been recent sharp decline in module prices, over past one or two, three months. Is this start to reflect in your business contracts or, or your customers are totally different and not getting impacted? Because you also have, like, 70% export and 30% domestic within this quarter. So how-
I think, Prateek, one thing, we are infra, so therefore solar is Adani New Industries ecosystem. You know, we have absolutely nothing we can say or share what happens in one month, two months, three months, six months, prices changing, going up and down, because nobody builds infra on two-to-three-month basis. So it's not that our customers are indifferent. On the... Customers on the other side are infra companies. They are supplying either renewable power or they are-- they might be in, in India or overseas. So they are looking at their renewable green electron cost over the next five years, 20 years, 25 years. So if they start timing and building based on timing, nothing will happen only. So what people look at is the reliability. So it is very, very...
This is not a manufacturing business, this is an input business into energy extraction. And the target of the customers and our own target is the minimization of the energy extraction cost on a long-run basis. And so neither do we track these up and down movements on a daily basis, nor on a monthly basis or a quarterly basis. What we are targeting is, how can we extract the cheapest green electron over the longer term to remain within the first quartile cost of extraction of the green electron? And that, I suspect, is also the view of the majority of our client base also within that business.
Right. These are my questions. Thank you.
Sure.
Thank you. The next question is from the line of Brett from Cantor Fitzgerald. Please go ahead, sir.
Hi, guys. Thanks for taking another one of my questions. On the wind turbine generator manufacturing, I know that kind of became commercial last quarter. I was just curious if there was any income from that part of the new energy ecosystem in the quarter. If so, how much? If not, I guess when would you expect that to begin to ramp up materially to start contributing to financials? Thank you.
If I understand the question correctly, Brett, the question was that when would the energy element of the new energy business contribute to financials?
Yes, the wind turbine part of that business.
So we expect the Windtech is. You will see, in the context of ANIL, the numbers will start showing this year, in the next financial year, actually, to March 2025. Not in this quarter, but over the next 12 months, the numbers will be visible of the Windtech.
Thank you.
Thank you. And the next question is from the line of Bharat Shah from ASK Investment Managers Limited. Please go ahead, sir.
No, that was pertaining to ANIL, and, and subsequently what you answered, I heard what I wanted to. So thank you.
As there are no further questions, I would now like to hand the conference over to management for closing comments.
Now, we thank all, all those who asked the question, all those who joined. Thank you so much. And we also take the opportunity to thank Rohit and the team for organizing the call. If there are any further questions, you can always feel free to reach out to Manan and team, and they will answer in writing. Thank you so much.
On behalf of Antique Stock Broking, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.