Ladies and gentlemen, good day and welcome to the Adani Enterprises Limited earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there'll 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 and then zero on your touch-tone phone. 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 Q3FY25 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, and CEO, Natural Resources. Mr. Robbie Singh, CFO, Adani Enterprises, and 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, everyone, for joining. Good evening. We welcome you to the earnings call to discuss Adani Enterprises results announced today for quarter and nine months, 31st December 2024. Adani Enterprises Limited is a flagship company of Adani Group, one of India's largest business incubators. Over the years, Adani Enterprises 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 verticals spread across mining services, metals and materials, commercial mining, and industrials. The emerging core infra businesses have yet again delivered robust nine-month results.
The ANIL ecosystem EBITDA increased by 121% to INR 3,666 crores. Module sales are now at a run rate of one gigawatt per quarter, and the wind business has supplied over 100 turbine sets during this nine-month period. Adani Airport EBITDA grew by 43% to INR 2,527 crore, 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 nine-month period are income up by 47% to INR 25,170 crore, EBITDA up by 27% to INR 7,674 crore, and PBT up by 114% to 4,060. This consistent high contribution of these emerging core and infra businesses boosted the overall consolidated results during the nine-month period, with the consol income up by 6% to INR 72,763 crore, consol EBITDA up by 29% to INR 12,377 crore.
Incidentally, just so that everyone understands, this nine-month EBITDA is roughly the same as last full-year EBITDA of 13,200. The consolidated profit before tax up by 21% to 5,220 crore, and just again, this is roughly the same as last full-year 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 non-cash, non-payable mark-to-market of roughly it can vary, but this quarter, it was roughly about over 1,000 crore. So consequently to that non-cash, non-payable mark-to-market, there is a proportionate increase in, because of reporting requirements, the interest to 2,000, finance cost to 2,141.
Please note, out of the INR 2,141 crore, roughly INR 750-770 crore of that is non-cash, non-payable MTM only. So the actual interest cost in cash is INR 1,390 crore 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 onto the website. But if you go to 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 that it doesn't cause any unnecessary confusion. Continuing.
On 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 for transferring the remaining stake of 30.4% will be taken as per the agreement. Just to give you a highlight, Adani Wilmar contributed roughly about INR 250 crore 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 crore, which will enable Adani Enterprises to invest up to INR 70,000 crore in its core infra businesses. At a rate of return of what we earn, which is around about 15%-18%, it will enhance EBITDA of Adani Enterprises by INR 11,000 crore and a cash-after-tax of roughly INR 5,000 crore.
So we lose a cash-after-tax of roughly INR 250 crore, and our new investments will result in a cash-after-tax of about INR 5,000 crore. So it's a 20-time improvement in the actual cash-after-tax post this transaction. So it's massively accretive in terms of earnings, EBITDA, cash flow for Adani Enterprises 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 3.3 and 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, four new airlines, and nine 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 a previous score of 49. AEL has now been ranked among the top five 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 for the mining service businesses 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, 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 57% 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 relationships with diversified customers across various end-user industries. We remain number one player in India and endeavor to maintain this 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 crore. Under the commercial mining, where we have a tenement block in Australia for 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.
Thank you, sir. We will now begin the question-answer session. Participants who wish to ask a question may press star and one on your touch-tone 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'll wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one on your touch-tone telephone. We have the first question from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Yeah. Hello, sir. 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, till the tariff rates decided, how will the revenues booked, the aero charges here?
I think the status is we are pretty much on track because of logistics and everything. They are trying to formalize the formal launch date, which will sometimes be in April. Now, the tariff order will get determined, but in the meantime, you 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 we went formally. Once we receive clearances in about March, you will see that we'll highlight those numbers in our May presentation post the annual results, but 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 as our order book currently? And how do you think about the U.S. market given the recent event that has happened?
I think there we are pretty much at our current run rate of about one gigawatt. So we are pretty much at full capacity there already. Eventually, as we have already said before, their final target is to have 10 gigawatt of capacity. But today, our actual capacity, we are 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 U.S. market exports?
No real dramatic change there. Our mix will continue as we are. But we don't expect that because it's a largish market, although there's a lot of noise, but it's a largish market. So we are a very, very small part of a very large market. So it doesn't change much from that basis. Very limited changes.
Okay. Thank you for answering my question.
Thank you. We have the next question from the line of Prateek Kumar from Jefferies. Please go ahead.
Yeah. Good evening, sir. I have three questions. Firstly, on your airports EBITDA has moved from INR 744 crore in Q2 to INR 1,100 crore in Q3. How is this EBITDA change in Mumbai quarter to quarter and the six 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'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 1100 from the 743. So we can do the detailing as you request, and we have the numbers. We'll provide that as a separate answer. We'll note it as an FAQ, and we'll share it.
The impact of tariff orders on five airports is now completely baked in this quarter, or is more of it expected? I know for one of the airports, it's still not there, and of course, for Navi Mumbai, it's not there. But yeah, I mean, for the remaining five, it's all baked in.
Five airports, Prateek, it's baked 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 the 10% stake has been sold already, the remaining 30% stake, is it 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 six weeks to, say, 30 weeks. So we expect somewhere in that range that all the competition approvals will be completed.
Right. Currently, 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 you can give? And the question is the CAPEX for nine 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, we have given the number 33,171, which is a non-current external debt number provided for, and which was for March 2024, and then December net external debt 46,858 is provided for. It's on page 31 of the presentation.
Yeah. So it is external debt, but it is not net debt. So I was asking about the cash position. It was reported as, yeah, 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. We'll give you the number. Just one second. The net external debt is 46, non-current debt is 46,858, and cash on balance sheet is 5,800 crore.
Right. And the CAPEX targeted for this year and nine-month CAPEX, how would that stack up?
So in the CAPEX, the only CAPEX that we have a slight variation because of various approvals, etc., is related to the PVC project and a slight timing change in the green hydrogen ecosystem of about INR 4,000 crore and in the PVC of about INR 7,000 crore. So aside from that, INR 11,000 crore, our CAPEX on the rest of the business is on track. So we had highlighted guideline of around about INR 80,000 crore, and our planning is at INR 69,562 crore.
Guideline for this year was 80,000. Your target for 69 and nine months CapEx would be how much?
Two variations. INR 7,000 crore variation in the PVC project and about INR 4,000 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 in the ANIL ecosystem, green hydrogen ecosystem.
Yeah, and sir, the nine-month CAPEX would be how much?
The nine months, we are at roughly around 21,000.
Okay. So around over INR 50,000 crore is expected in last quarter. That's the expectation.
I will give you the number. What will not come due to timing difference, billing, everything, what you will see is that out of that, roughly the 28,000 of the ANIL ecosystem will not come in this year from accounting perspective. So that is one big number. And against the number, roughly about because of the way we will complete formal completion of 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 11,000. So 40,000 is just these two timing differences.
Okay. So maybe this year's reported CAPEX might be INR 30,000 crores eventually versus nine months of INR 21,000 crores.
Correct. A little bit, that would be the correct number because then next year, Navi Mumbai 11 to 12,000 will get added simply because of the fact that the closure will be reported in April. And then consequently, as we start on the ANIL ecosystem, those numbers will come up in the next year from accounting perspective.
And sir, I'll get back to the queue. Thank you.
Sure.
Thank you. We have the next question on the line of Naman Jain from Kotak Institutional Equities. Please go ahead.
Hello. Am I audible?
Yes, we can hear you.
Yeah. 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 you see the realization in the domestic DCR market, and what's your view going forward? Third, the 10-gigawatt target which you were looking for, is it still 2028, or are we preponing that?
I think that just the 10-gigawatt is as originally planned. It would not be preponed. Until unless there's a change, we will update. In relation to the sequential change, that is how the customers' 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 too 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 is 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.
Yeah. So WTG, the wind manufacturing, the total income for the nine months is roughly 1,700. And the EBITDA is around, actually, close to 340 crores.
Okay. Thank you, sir. Thanks a lot, and best of luck for the next quarter.
Thank you.
Thank you. We have the next question on the line of Sarang Joglekar from Vimana Capital. Please go ahead.
Yeah. Thanks for the opportunity. Just wanted to get some idea on the solar manufacturing. So in the domestic side, is it the same as 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 going, 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.
Okay. Got it. Thanks.
Thank you. We have the next question on the line of Deval Shah from RBSA Investment Managers. Please go ahead.
Yeah. Hello. Good afternoon. So 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 have 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 previously 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 specifically to the wind turbine as it increases percentage.
If I consider the normalized scenario, the commentary says that the realization has improved and the efficiency has also improved for the solar manufacturing. It's margin equity in the normalized scenario.
Correct. Correct.
Okay. So that's the.
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 the INR 78,000 crore 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 don't change. It's just that, for example, one of the things that has occurred is that Navi Mumbai Airport is relatively complete. It will formally complete in April. So the numbers want to come up in that period when it completes. Then the similar timing difference is there in the ANIL ecosystem. So more or less, we generally don't assume and we don't forecast on potential CAPEX that we might do. These are all known projects that we've already highlighted.
Okay. Okay. That's the clarification I was looking at. And sir, so INR 80,000 crore, 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 30,000 crores.
Yeah. On books, you will see a number around that, yes.
Okay. Okay, sir. Thank you. Thanks.
Thank you. Participants who wish to ask a question may press star and one on your touch-tone telephone. We have the next question on the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead.
Thanks for the opportunity. So in terms of our ongoing CAPEX, so in view of a slight shift on CAPEX on the ANIL ecosystem front, and then we are expecting close to INR 10,000 crore again from Wilmar sale next year. And INR 70,000 crore, we can go with that. So our QIP plan for equity raising, that will do we need really in FY26, or it can be delayed in FY26?
That is largely because as a process, we take enabling approvals. But you are right. In the short term, no, there is no specific need. But our run rate equity requirements will continue broadly. But we will renew that approval if required, but no specific additional need outside of what we have already raised.
Okay. So FY26, as such, we don't need to raise as per our current schedule of CAPEX. Right? If we conclude Adani Wilmar.
Adani Wilmar will conclude. So yes. So 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. Right. Thank you.
But no, no, we don't have accurate timing, but yes.
Okay. Thank you. I'm receiving information.
Thank you. We have the next question from the line of Bhavik Shah from MK Ventures. Please go ahead.
Yeah. Hello, sir. So what I understand is that current year, CAPEX will be at around INR 30,000 crore. So can you help us with the CAPEX for next two years, say FY26 and FY27? How much will be our CAPEX for next two years?
I think we will not be able to specifically answer this question for this quarter because we update that annually. I mean, we can attempt to give you a broad, but I don't want to hazard a guess till 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. And sir, do we have any major loan repayments coming up in FY26? What will be the quantum of loan repayments in FY26?
The short-term debt is very, very limited at AEL. So at maximum, it would be around 3,300 crore, with cash held at AEL is 5,800.
Okay. Okay. So basically, what I understood from the previous line is that around INR 39,000 crore, INR 28,000 crore from ANIL, and INR 11,000 crore of airports will be spent in next year. Right?
Yes.
Okay, so that will be the minimum requirement for.
No, no. It will be booked in next year.
Okay.
Annual will be spent, and airport will be booked.
Okay. Okay. Understood, sir. And so, say, other businesses, like say data center or in our old Carmichael or anything, do we need any CAPEX there?
No. Data center, other than what's flagged, same. Carmichael and all, no. All CAPEX done.
Okay. After Navi Mumbai Airport, will the other airports also need CAPEX?
Navi Mumbai itself will need CAPEX.
Okay. So that will begin from after phase one only?
Yeah. It will be after first year itself. New CAPEX will start.
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. We expect the business to ramp up in the next financial year fully.
Okay. So we expect to hit peak utilization next year itself?
No. 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.
Okay. Okay. Understood, sir. Thank you so much.
Thank you. We have the next question on the line of Giriraj Daga from Visaria Family Trust. Please go ahead.
Yeah. Hello. Am I audible?
Yes, we can hear you.
Yes.
So my first question is on the IRM side. So we are seeing material drop in the volume and earnings per se. Would you say this is just 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 as 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 as 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 the last two decades.
So you will see a volume getting back, 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 28,000 crore or INR 30,000 crore, roughly roundabout number, that will come when we start consuming for clean 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 bit of completion of the ingot and 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 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 AGL at the moment because it's a specific 5.2 megawatt wind turbine is not available anywhere else, and AGL's needs are quite large. The CAPEX that ANIL ecosystem will happen is that when we move towards the generation of the green electron for the production of green hydrogen. So the site work and all the prep work is going on at the moment.
When that picks up, as you foresee, just not our sister firm, that Adani Green, once that picks up, then the CAPEX happens quite rapidly once 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 my question is that so currently, we are selling, let's say, one gigawatt of module every quarter. And if we, let's say, sell one gigawatt for FY26, entirely four gigawatts, then this ANIL ecosystem CapEx will still be very low, right, next year also?
Yes. Because the 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 will hit that timeline?
No, modules will continue to sell externally a very large amount. But overall, I don't think that once 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.
So next year, okay, just to next year, we will have module capacity of what? 10 gigawatt is the target for FY28, right?
Yeah. 4.5.
4.5. And how is the schedule for FY27? Will we reach there? Will we combine 10 CAPEX of 10 directly to FY28?
That's most likely 27-28, yes.
Okay. Understood. So next year, just to next year, also cash CAPEX will be somewhere about 30,000-35,000 crore, right? Because ANIL ecosystem CAPEX will still be a year away from there.
Correct.
Understood. Okay. Thank you.
Thank you. We have the next question on the line of Prateek Kumar from Jefferies. Please go ahead.
Yeah. Thanks for the follow-up, sir. My question is on commercial mining. So there's this large PBT loss which has been put in the segment. This is largely due to that MTM loss which you said in the beginning. Is that right? And also, what is the segment EBITDA during this quarter in the segment?
So 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 book the movement on the shareholder loan. It is not payable. It's non-cash. And so it's just that item. And the second part of your question, segment, the Carmichael Mine financials, just so that you know, income was roughly INR 5,400 crores for the nine months, EBITDA INR 763 crore.
So even the EBITDA is sort of negative for the same reason which you mentioned for the quarter?
Yes. That is largely because of the MTM of the shareholder loan.
Okay. I have a couple of other.
It is a part of other item in the finance cost. That's why it goes that way.
Right. Okay. On data centers, I see that we have around 270 megawatts 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, in context of current environment, around chip prices, which may get impacted because of the new thing which has come up? So how are the contracts for us work? We have talked about earlier 210 megawatts of order book. So how are the chip contracts sort of work here, and how do you see it being impacted?
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 there's no change in the construction and development plan of that business.
Okay. So these are my questions. Thank you.
Thank you. Participants who wish to ask a question may press star and one on your touch-tone telephone. We have the next question on the line of Deval Shah from RBSA Investment Managers. Please go ahead.
Thank you for the follow-ups. Sir, I just need a clarification on the PVC. You mentioned that the project has been the INR 7,000 crore of CAPEX is postponed, or there is a change on the plan. So I just wanted to understand on the PVC side of the CAPEX.
Just that given all the approvals required, etc., construction, the scheduling means that a lot of that CAPEX will come in the following year rather than this accounting year from booking perspective.
So it's just the timing. For PVC, also it's the timing.
Yes. It's timing. Yeah. It will get the project is scheduled to complete as we are now. In calendar?
27.
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'll see a volatility curve around about 3.2% to 3.7%, independent of what happens in one or two years. But because we cover that volatility curve over the 10-year period, there is no impact on our finance charges because of the repeat volatility.
Okay. So as I understand, in your projections as well, whenever you are planning for the overseas direction, commercial borrowings or whatever, we are taking the 4% depreciation impact in our projections, probably in the linear or some of the other models, but we are considering the 4% depreciation.
We assume that that occurs. So consequently, we plan that way already.
Okay. Well understood. Thank you so much.
Thank you. That was the last question. I now hand it over to the management for closing comments.
Just to Mohit, thank you for organizing this, and to all the participants in Q&A. Thank you, investors. If there's anything further 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'll 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.