Adani Enterprises Ltd

NSE:ADANIENT

Earnings Call Analysis

Adani's Diverse Growth and Strategic Expansions

Adani Enterprises saw a significant rise in EBITDA by 32% to INR 13,237 crores in FY '24, alongside a 56% increase in PBT to INR 5,640 crores. Emerging businesses, notably in green hydrogen and airports, boosted revenue and EBITDA substantially. The company unveiled India's first large-sized mono crystalline ingot and wafer plant, supporting its solar module production. Future plans include completing the Navi Mumbai airport project by FY '25 and investing INR 80,000 crores in FY '25, focusing on green hydrogen and airport expansions.

Introduction of New Businesses

Adani Enterprises has made significant progress with its incubation portfolio of emerging businesses, including energy and transportation sectors. The new segments contributed 45% to EBITDA for FY '24, up from 40% in the previous year. This includes notable highlights such as the commissioning of India's first large-sized mono crystalline ingot and wafer unit with a capacity of 2 gigawatts. The green hydrogen ecosystem saw a remarkable 145% increase in revenue to INR 8,741 crores, with EBITDA growing 4.6 times to INR 2,296 crores.

Airport Revenue Growth and Future Projections

Adani Enterprises' airport business witnessed a revenue growth of 35% to INR 8062 crores, with EBITDA increasing by 45% to INR 2,437 crores. Notably, passenger movement across its airports grew by 20%, and the Navi Mumbai greenfield project is expected to become operational by the end of FY '25, which will substantially boost growth in FY '26. Further, Mumbai Airport won the Cargo Airport of the Year, India Award, reflecting its superior service quality.

Steel and Mining Operations

The company's integrated resource management and mining services showed robust performance. The mining segment, including 8 coal blocks and one iron ore block, reached a production volume of 32.5 million metric tons during FY '24. The commercial mining operations in Australia, particularly the Carmichael mine, demonstrated a production jump of 47%.

Financial Performance and EBITDA

The consolidated EBITDA for FY '24 increased by 32% to INR 13,237 crores, and the profit before tax (PBT) rose by 56% to INR 5,640 crores. The company's consolidated income stood at INR 98,282 crores, underscoring the significant growth across diverse segments. The integrated manufacturing division under Adani New Industries Ltd. (ANIL) aims to ramp up its green hydrogen manufacturing capacity to 10 gigawatts, thus reducing dependency on imports and providing more control over module production.

Wind Turbine Manufacturing and Energy Expansion

Adani Enterprises' wind manufacturing segment supplied 47 wind turbine sets during its first full operational quarter, generating revenue of INR 850 crores and EBITDA of INR 120 crores. The order book holds 254 wind turbine sets. The company has also achieved type certification from WindGuard Germany and is recognized as a leading manufacturer globally.

CapEx and Debt Management

For FY '25, the company plans a capital expenditure of INR 80,000 crores, with significant investments in ANIL, airports, and road infrastructure. The aim is to keep the net debt to EBITDA ratio below 4x by the end of FY '25. This strategic investment in expanding capacities and new projects is expected to drive future growth.

Data Center Business Expansion

The data center business, run through a joint venture with Edge Connect, is poised to grow with a current order book reaching 210 megawatts. The completion of facilities in Noida and Hyderabad by FY '25 and in Pune by FY '26 will position Adani Enterprises as a significant player in the data center market. Targeting hyperscalers like Google and Amazon, the business model focuses on leasing space and ensuring continuous billing growth.

Earnings Call Transcript 2024-Q4

[Operator]

Good evening, ladies and gentlemen. I'm Falcia, moderator for the conference call. Welcome to Adani Enterprises Q4 FY '24 Earnings Conference Call. We have with us today Mr. Dhananjay Mishra from Sunidhi Securities along with the management of Adani Enterprises Limited. [Operator Instructions] Please note this conference is recorded.

I would now like to hand over the floor to Mr. Dhananjay Mishra of Sunidhi Securities Limited. Over to you.

[Dhananjay Mishra, analyst]

Good evening, all of you. On behalf of Sunidhi Securities, we welcome you all for Q4 FY '24 earnings con call of Adani Enterprise Limited. We thank our management for giving this opportunity. From the management, we have Mr. Vinay Prakash, Director, Adani and CEO of Natural Resource division; Mr. Robbie Singh, CFO; Mr. Saurabh Shah, Deputy CFO; and Mr. Manan Vakharia, Head, Investor Relations.

Now I hand over the call to the management to give their brief opening remarks, then we'll have Q&A session. Over to you, sir.

[Jugeshinder Singh, executive]

Good evening, all. We welcome you to the earnings call to discuss Adani Enterprises Q4 and financial year FY '21 results. Adani Enterprises new emerging core infra businesses under its incubation portfolio of energy and utility and transport and logistics vertical, that is Adani new industries, ecosystem airports and roads are making significant strides in their operational and financial performance.

The contribution of these assets to the overall EBITDA is now at for 45% FY '24 as compared to 40% in FY '23. We are delighted to share that the Integrated Manufacturing division under ANIL has commissioned India's first large-sized mono crystalline ingot and wafer unit of 2 gigawatt capacity compatible for both wafer thickness of 182 mm and 210 mm. During FY '24, the new emerging businesses under Adani Enterprises incubation portfolio demonstrated significant growth. ANIL green hydrogen ecosystem revenue increased by 145% to INR 8,741 crores and EBITDA increased by 4.6x to INR 2,296 crores. p

The airports business revenue grew by 35% to INR 8062 crores and the EBITDA grew by 45% to INR 2,437 crores. Total income of incubating businesses increased sharply by over 66% to INR 24,510 crores, and the total EBITDA increased by 47% to INR 5,942 crores. The PBT increased by 104% to INR 2,643 crores. The consistent higher contribution of these emerging businesses boosted the overall profit of Adani Enterprises.

The consolidated EBITDA for FY '24 increased by 32% to INR 13,237 crores while PBT rose by 56% to INR 5,640 crores. Consolidated income stood at INR 98,282 crores.

Now coming to the project and operational updates on the major businesses. In our Adani new industries, green hydrogen ecosystem our target of 10 gigawatt green hydrogen integrated manufacturing ecosystem is progressing well. Validating the backward manufacturing integration we have successfully commissioned India's first ingot and wafer plant in capacity of 2 gigawatts, which will go in already established solar module manufacturing capacity of 4 gigawatt. This will not only reduce dependency on imports, but also enhance better control on module production and prices.

ANIL's wind Manufacturing division order book stands at 254 sets during the first full quarter of operations, the division had supplied 47 sets. We have received the provisional type certification from WindGuard Germany for prototype 2 using our own ANIL's blades. Further, we are happy to inform that the India's largest 5.2 megawatt turbine, which we produced is recognized as the bronze winner among 5.6 megawatt capacity by wind power monthly, which is U.K. based, which validates the quality and performance of our products globally.

Now moving to the airports portfolio, we have inaugurated the first phase of the world-class terminal of Lucknow Airport, which can cater up to 8 million passengers per annum, with elevated pathways separating the arrival and departure clues. During the quarter, 10 new routes, 7 new airlines and 18 new flights have been added across all the 7 operational airports. The passenger movement at our airports increased by 19% to 88.6 million. The eagerly awaited greenfield Navi Mumbai project is on track for completion in FY '25. Mumbai Airport won the Cargo Airport of the Year, India Award, which demonstrates the quality of service and performance.

Finally, in our roads portfolio, 4 out of the 10 projects are more than 70% completed in line with the target schedule. And the greenfield Ganga Expressway project is progressing well. These leaves Adani enterprise well poised to develop its incubating portfolio eventually as independent listed verticals in their own right. Thank you.

Now I will hand over to Mr. Vinay Prakash, who will take you through the highlights of primary industry portfolio. Over to you, Vinay, sir.

[Vinay Goel, executive]

Good afternoon, everyone. Mining services, Adani Enterprise Limited is the pioneer of MDO concept in India with integrated business model that spans across developing mines as well as the entire upstream and round downstream activities. It provides a full service range right from seeking various approvals, land accretion, [ R&R ], developing required infrastructure, mining, benefication on-site and transportation definitive consumption points.

Our success is underpinned by commitment to excellent risk management and sustainable mining deficits. The company is MDO for 8 core blocks and one iron ore block. These products are located in the state of Chhattisgarh,MP and Odisha. The company has serviced its contact and the quantities delivered during the quarter were as per the schedule. In the current financial year before, the [ lari ] mine has achieved its peak credit capacity of 5 million metric tons per annum in the second year itself of its full fledged operation.

The prudent volume during FY '24 increased to 32.5 million metric tons. During the FY 2024, the revenue from mining services was INR 2361 crores and EBITDA was INR 830 crores.

Coming to Iron business, Integrated Resource Management business. We have continued to develop business relationship with diversified customers across various end users in the industry. We remain #1 player in India and enable to maintain the specific position going forward. Over the past couple of years, the iron business has been exploring ways to tap into the newer market segments to initiatives like flagship E-Portal, which is Adani IRM portal for the online tailing of natural resources, delivering technology for faster and more reliable supplies supported as an insured ease of being business for our retail customers leading to a large market share for AL.

IRM continues to target a balanced customer of retail and public sector enterprises customers. The volume during FY '24 stood at 82.1 million metric tonnes. EBITDA for FY '24 was INR 5173 crores on account of improved [ realization ] on year-on-year basis.

Commercial Mining. On the commercial mining, we have one running mine in Australia, which is the Carmichael mine. The Carmichael mine production increased by 47% to 11.2 million metric tonnes and the shipment increased by 52% to 11.2 millimetric tonnes during FY '24. The company is also having 6 domestic commercial mine blocks of coal and 2 domestic commercial bauxite mines with iron for the [indiscernible]. The projects are in the state of Maharashtra, Chhattisgarh, MP, Jharkhand and Odisha.

In our primary industry and commission portfolio, we have a company -- we have a subsidiary company called [ Tac ] Copper Limited There, we are putting up a 0.5 million tonne plant at Mundra and the plant has started its operation. We have produced and despite our first batch of copper production to customers in March of 2024. Commissioning of this first unit of its greenfield copper refinery projects, some cases that Adani Group's ability to plan and execute large-scale projects in the company. Thank you.

[Dhananjay Mishra, analyst]

We are ready for Q&A, please.

[Operator]

[Operator Instructions] First question comes from Prateek Kumar from Jeffries.

[Prateek Kumar, analyst]

I have 3 questions. Firstly, on CapEx outlook, can you highlight like how do you see now FY '25 in terms of overall CapEx and maybe segmentation of the CapEx in terms of various division in the current and FY '25.

[Jugeshinder Singh, executive]

Thank you, Prateek. So from the CapEx perspective, we are looking at a CapEx of about INR 80,000 crores in the FY '25, out of which major part of CapEx will come from both in ANIL and airports business, which take up about INR 50,000 crores of CapEx, then the third would be in roads, which will -- because of Ganga Expressway, there will be a CapEx of INR 12,000 crores and rest put together in other businesses, including because we are also starting our PVC projects. So in PVC, there will be a CapEx of about INR 10,000 crores, while remaining with being data center at about INR 5,000 crores.

[Prateek Kumar, analyst]

And what would be the exact capacity in various segments, like, for example, in ANIL what would be the exact capacity you're looking at and [indiscernible].

[Jugeshinder Singh, executive]

Yes. So see, the -- as we have informed that the overall capacity will grow to 10 gigawatt in the module integrated manufacturing right from polysilica in 2 modules. And in wind also, we will have a capacity of 3 gigawatt. So this CapEx is going into that direction. For FY '26, the other CapEx would be for the initial requirements that we have to meet for our green hydrogen business also, which will be as a kick start for our green hydrogen as well as downstream programs.

[Prateek Kumar, analyst]

Okay. And some questions on operating numbers. The solar segment margins on an EBITDA basis have come down from like 30% plus range to sub 25% range. Any specific reason here? Or like is it due to because of adverse pricing or adverse product mix?

[Jugeshinder Singh, executive]

No. So see, from a Q4 perspective, the numbers are basically just there is a small dip because of the import to export to domestic mix. So in terms of domestic, the sale had gone up and against export that growth was not that significant as was in last quarter. That's why there was a small change in the margin structure.

[Prateek Kumar, analyst]

But is this -- okay. But in near term, probably domestic is going to remain high in terms of mix or like..

[Jugeshinder Singh, executive]

Mix should right now continue as what is in -- was there in the first 9 months of the period because of the orders that we have in hand. And this margin structure should remain between 25% to 30% for the foreseeable next 1.5 to 2 years.

[Prateek Kumar, analyst]

And on the MDO service. So again, last quarter, we had like some different profitability in the segment on a unit basis. That has remained there in this quarter. I seem like in the presentation, you have mentioned that we do see some change in service contract mix. So is this the margin range that you are looking at in MDO service?

[Jugeshinder Singh, executive]

No. So see, the margin for the quarter from a sequential quarter perspective has improved in Q3 because of certain change in the service contract mix, what will continue to happen is that with new and new mining services contract that become operational, the change which will happen from the [ PVKB ] mine to , which was a significant portion of our EBITDA to other mines, which have a lesser percentage in terms of contribution. So from the perspective of the margin, they will reduce. But on an overall basis, the profitability should now on an increasing trend in the next few quarters.

[Prateek Kumar, analyst]

And last question on wind segment. Given order book and the delivery set, is it possible to give this number megawatt because we talk about capacity in gigawatt.

[Jugeshinder Singh, executive]

So all our 5.2 megawatt each turbine. So at 47 x 5.2 is what we have supplied in terms of gigawatt. And at 254 sets at 5.2 megawatt each set, that would be the overall supply that we will -- we have the order book for.

[Operator]

Next question comes from Brett Knoblauch from Cantor Fitzgerald.

[Brett Knoblauch, analyst]

Congrats on the strong finish to the year. I guess my first question is on the recent announcement that you guys finally commenced operation of your copper plant. Can you just talk about the ramp cycle and timing of that? And when should we expect that to start to, I guess, materially contribute to financials? And is that demand -- maybe just long term, can you talk about what the demand profile for copper is in India maybe today and what it will look like in a couple of years and how you're well positioned to meet that demand?

[Jugeshinder Singh, executive]

Sure. Vinay sir, would you like to take that?

[Vinay Goel, executive]

Yes, sorry, I think I missed the question [indiscernible]

[Jugeshinder Singh, executive]

Yes. I'll just explain what Brett is asking is that the copper business, how do you see the ramp-up in the coming quarters? And as overall, how do you see the demand in the coming 2, 3 years?

[Vinay Goel, executive]

Yes. Thanks for the question. In fact, copper, as you all guys might be seeing it globally. The copper prices are going up because of the increase in demand on a global basis, for the focus on renewable where the copper consumption is going to go up. So in India, we consumed close to 1.1 million, 1.2 million tonnes of copper metal, which is likely to go up because of the government focus on renewable power, where we are going to have a higher consumtion of copper.

As far as [indiscernible] is concerned, we started our production in March '24. And in this year, we are going to commission all our units by the end of FY '25. So for this year, we are not going to achieve the peak, but FY '26, we are likely to achieve our peak capacity of 0.5 million tonnes.

And we see a very good demand coming from India itself. So as of now, we see a mix of domestic and exports of the volume, but the portion of domestic is going to go up year by year. I hope I answered your question.

[Brett Knoblauch, analyst]

No, perfect. Very helpful. And then on the airport side of the business, I believe, coming up over the next couple of maybe quarters and years, there's additional airports that are going to be privatized or up for auction. But is that something that you guys would look pertaining. I think it's 11, is going to come up sooner than 14 additional airports coming up there for that.

[Jugeshinder Singh, executive]

So Brett, we will surely look at that because, see, we are looking at it from a more of a network perspective in airports business. We want to ensure that we are there as a network player, which gives us a very big strength in terms of route planning, in terms of the strategy development and what we want to do.

We are looking at it from a consumer perspective, so that even makes more sense from a cargo perspective, having a big network also increases our strength. So we will surely look at the airports, which come up for privatization. I think this should happen post elections that the government may come up for a pipeline for privatization, and we will 100% bid for projects for airports, which are in our core strength of the network that we want to develop.

[Brett Knoblauch, analyst]

Got it. Awesome. And then maybe moving to data centers. It seems like a couple of the projects are nearing completion. I guess what type of capacity are you expecting to have for that business by the end of FY '25. I'm guessing both Noida and Hyderabad would both be completed

[Jugeshinder Singh, executive]

Sorry, Brett, can you repeat the question? I didn't get that.

[Brett Knoblauch, analyst]

Yes. On the data center business, can you just talk about what you expect capacity or operational capacity to be by the end of, I guess, the new fiscal year?

[Jugeshinder Singh, executive]

Sure, sure. So see, in the data center business, Chennai is fully operational at 17 megawatt. The billing for about 12 to 13-megawatt is already going on, it will keep on increasing. In case of Noida and Hyderabad, it is 81% and 88% completed already, respectively, from a core and share perspective. We are already having the signed orders. So as soon as the construction completion happens, we will start the operations there and the billing should start.

In Pune, we recently signed a contract for 96 megawatts, so that order book has now reached 210 megawatts in the data center business as against 112, which we reported up to Q3. So that business is poised to grow. The billing will be all dependent on the enterprise players that are there, per skill players that are there. So as such, we are looking to have the billing started for Noida and Hyderabad in the -- by FY '25 and in Pune by FY '26.

So all the overall 210 megawatts, which we currently have, we are signing up further contracts also. But whatever we today have at 210, we should be having a full billing capacity by FY '26 on all the 3 places that is Noida, Hyderabad and Pune.

[Brett Knoblauch, analyst]

Awesome. And then maybe if I could just ask one more on the wind turbine manufacturing. Obviously, it's nice to see that ramp up such quarter-over-quarter. Can you just maybe help us from a modeling perspective model revenues for the wind revenue, wind manufacturing revenue, I guess, of the 47 wind sets sold, I guess how much revenue did that generate in the quarter?

[Jugeshinder Singh, executive]

So in wind manufacturing on the full quarter of operations that we had -- the first full quarter of operations that we had this year, we supplied 47 sets. In that, because of that 47 sets, the revenue that we generated was about INR 850-odd crores on the 47 sets. And the EBITDA was about INR 120 crores was the EBITDA that we generated out of those -- based on those numbers. So that's how the trend will be in the coming few months because -- a few quarters because we already have full complete year of order book, which is available for this business up to the next FY '26 first quarter till that time.

[Brett Knoblauch, analyst]

And what's the ramp capacity on that? So 47 this quarter is what can that get up to on a quarterly basis?

[Jugeshinder Singh, executive]

So on a quarterly basis, that can go up to about 55 sets per quarter. On the current scale, if we -- we are also looking at expanding that facility. And once that expansion gets over, we can take it to double of the capacity each quarter.

[Operator]

Next question comes from [ Anuj Suneja ] from ICICI Prudential Life.

[Unknown Analyst]

Congratulations on a great set of numbers. Partially my questions have been answered in questions of Brett. Just to follow up on the airport fees. So if would it be possible to break down the growth that we are expecting going forward in the aero and the non-aero part of the business? Because are other competitors kind of share that number. And if I were to say, do some competitive benchmarking there, would it be possible to share those numbers? And how are we looking at it, say, 2, 3 years down the line?

[Jugeshinder Singh, executive]

Yes. Thanks, Anuj. That was a great question. So we will also come up with this as we move forward in that business. As you know, because of -- we just took over this business during COVID. And there were certain aberrations in that. Now everything has been streamlined. So we will also come up with the aero to non-aero ratios as we move forward in the next 6 months or so.

Currently, the ratio is -- except Mumbai, the ratio is very skewed towards -- about 75% comes from aero and 25% from non-aero in our 6 airports. Mumbai is better at about 50-50. But as you know, from a consumer perspective, when we look at what Adani is looking at this business, we are constantly trying to move that ratio towards how it is being done at the international level towards 75, which may come from non-aero, 225, which comes from aero. So that's how we are also poised to grow this business. in the next 2 to 3 years, you will see a very big change in terms of the ratio from Aero to non-aero.

[Unknown Analyst]

And going forward, is there something that we have in mind as a strategy just to push non-aero, given that we have our app as well, the Adani One app. So are there any initiatives that we have just to push on the non-aero side of the business?

[Jugeshinder Singh, executive]

Sure, sure. No, no, 100%. We are constantly looking at a lot of things that we can do in terms of pushing the non-aero envelope and bringing in more wallet share from not only tax, but non [ tax ] -- see, our touch points at the airports is not just 90 million passengers that we cater to. Our touch points are nearly double of that. So we are catering to not just 90 million, but nearly 250 million odd touch points. So net wallet share, once it grows, it will be a very big number. So that's how we are looking at this business. You will see -- we are already seeing a lot of change that we are bringing in at the Ahmedabad airport, at Mumbai Airport, there is a huge development that is taking place outside the terminal hard boundaries and that we will continue.

Our first phase of City site development has also started at Mumbai, so that all those will change the entire dynamics there.

[Unknown Analyst]

Great. Great. Great. And since we just touched upon Adani One as well. So historically, once we had said some metrics around Adani One app, how is that faring these days?

[Jugeshinder Singh, executive]

So currently, the number of users on the Adani One app have reached 30 million odd number, which will -- which is constantly growing -- and currently, that is more about airports that it is working on, but as we bring in more and more our customer new -- this business is into that, that number is poised to grow because service -- being a service industry that we are in, it makes sense for everybody to use the app for a lot of activity that they travel for.

[Unknown Analyst]

yes. Got it. My second question is, again, a follow-up to Brett on the Adani [ conex ] part of it. While I understand you have about 220 megawatts of data centers that have been put in. A lot of competitive intensity is also actually intensifying from the Amazons and the Googles of the world. So what are our business plans in terms of -- are we going to lease it out to them? Or do we have a different set of customers altogether? And pardon my ignores that if you've already spoken about, yes.

[Jugeshinder Singh, executive]

No, no. See, for us, Googles, Amazons, Microsoft and any other large hyperscale players are our customers, they are not our competitors. So we have them as our partners, we are working with a lot of them and they -- that's where we are like looking to develop that relationship through Edge Connect because Edge Connect already has a very good relationship as our JV partner with this kind of customers.

And then we are already developing that. In terms of competition, I think there is a lot of space available within this sector for future development, not only for us, for all the players. See India today, our own data resides outside in a very big number. So once with the government policy on bringing our data back to shore, plus a lot of data requirements are constantly going up. So all this makes the -- even whatever number we produce -- we come up with, there will be constant increase that we are seeing in the overall data center requirements. So we see a very large number there and we don't see any impact on competition on the current set of numbers that we have.

[Unknown Analyst]

And a very basic question I had on data centers. What does this 1 gigawatt translate into? Is there a standard translation? Or is it more of a easy picture?

[Jugeshinder Singh, executive]

No, sorry. So.

[Unknown Analyst]

We're talking about in the

[Jugeshinder Singh, executive]

Because there are other...

[Unknown Analyst]

That's right. And finally, one piece on the coal business or the International Resource Management business. Given that there have been ESG concerns historically around this business. How are we planning to go forward with the IRM and the coal energy business? Just final thoughts on that?

[Jugeshinder Singh, executive]

Vinay,sir, would you like to take that?

[Vinay Goel, executive]

Yes. You said energy concern or you said ESG concerns on the coal?

And in fact, if you talk about ESG concern, that we have been doing this coal business is that it's actually a service function where we are fulfilling the need of our customers. We are not consuming this school of ourselves. And secondly, we are always trying to see is how we can use the various means to cut down the emission happening either in terms of road transport, in terms of multiple handling and in terms of the storage of cargoes. And that's the only thing which we can do in terms of ensuring our commitment towards ESG.

[Unknown Analyst]

Okay. And the mining side of things, so the carmichael mines or there also this product progresses.

[Vinay Goel, executive]

Carmichael mines are the mine which we have at MDO in India. Again, this call is getting used by someone else, not by mining and supplying coal to someone. But when we speak about India mining, we are the only miner who has employed the silo loading with the fast loading system, in which we can load a crane in 1 hour compared to the normal conventional hours of 67, which helps to reduce a lot of consumption diesel in the rigs, which stand at the mine site.

Similarly, we use continuous miner, we use many many initiatives which are reducing the emission and the methane emission in the mining area. Similarly, in Australia, we are using big equipment to ensure that we have less number of equipment lying on the earth and ensuring that environmental issue. So whatever best we can do in terms of being a responsible miner, we are doing and making sure that it is having the least concern as far the ESG is there.

[Operator]

Next question comes from Nikhil Abhyankar from ICICI Securities.

[Nikhil Abhyankar, analyst]

So if you look at our solar manufacturing business. So the realizations are still very strong at around 40%, 42%. So where exactly are these exports going? Are they majorly going on to U.S. and the European markets.

[Jugeshinder Singh, executive]

Yes, if you will see the module sales numbers that we have published on Slide 16, a larger part of our sales is happening to in exports and that has grown by nearly 152% over the last year. And it's -- and because of that, the margins have improved.

[Nikhil Abhyankar, analyst]

Yes. And if you can quantify what is the order book of our solar manufacturing business? And what is the share of exports, sir?

[Jugeshinder Singh, executive]

So in terms of order book, we are currently booked for nearly 1.5 years going forward.

[Nikhil Abhyankar, analyst]

Okay. So even if you assume 3 gigawatt of production around 4, 4.5 gigawatts?

[Jugeshinder Singh, executive]

Yes.

[Nikhil Abhyankar, analyst]

And the export share will be?

[Jugeshinder Singh, executive]

About 70% of that.

[Nikhil Abhyankar, analyst]

Sir, is it fair to assume that the realizations are up majorly because of the UFLPA act? And how do you see this realization trend going forward, say, after 2 or 3 years? because eventually, the global module prices are ranging in between around [ 20, 22 ] towards again.

[Jugeshinder Singh, executive]

So see, for us, we are looking at this business not just as a module business, but as a green hydrogen ecosystem business, -- the green -- going forward, we currently are selling outside, but the way our plants are on green hydrogen. Going forward in another year's time or so, a lot of it will be self consumption for us. So we are not that too worried on the numbers and this. But yes, for the foreseeable 1-year period, 1.5 year period, we see that the margins will be in the range of 25% to 30% for us, which we are happy with in terms of the overall plan.

[Nikhil Abhyankar, analyst]

Okay. And sir, just one question on the wind. So you mentioned is the wind order book majorly group captive?

[Jugeshinder Singh, executive]

Yes. Currently, yes.

[Nikhil Abhyankar, analyst]

Entirely 100%.

[Jugeshinder Singh, executive]

Yes, yes.

[Nikhil Abhyankar, analyst]

Okay. And sir, just a final question. The airport EBIT is negative, but the EBITDA is positive. Any specific reason for that, sir?

[Jugeshinder Singh, executive]

So there was -- there is -- 1 is that at the PBT level, we are still on -- we are still working on the business in terms of getting it positive. And also, there was a one-off exceptional item in the airport business, which will not -- which has put pressure on the PBT actually.

[Nikhil Abhyankar, analyst]

Sir, what was the value of it? So if you can quantify.

[Jugeshinder Singh, executive]

INR 627 crores, it's there in the results number that are -- that is because of the provision that was made for fees which we have to pay [indiscernible]

[Nikhil Abhyankar, analyst]

Okay. And sir, just a final bookkeeping question. So what is the goal block for the copper project?

[Jugeshinder Singh, executive]

So the current gross block for the copper project is INR 6,000 crores as against our total project cost, which will move towards INR 7,500 crores by the final completion of the project.

[Operator]

[Operator Instructions] Next question comes from Nirav Shah from GeeCee Holdings.

[Nirav Shah, analyst]

SP1Three questions. Firstly is, sir, can you just clarify that the INR 641 crores of EBITDA that we've reported in the under ecosystem includes INR 120 crores from wind equipment?

[Jugeshinder Singh, executive]

Yes, yes. Yes. It includes. Yes, it includes.

[Nirav Shah, analyst]

Okay. Sir, second question is just a bookkeeping one. What is the EBITDA from the Australian operations for fourth quarter and third quarter?

[Jugeshinder Singh, executive]

So in Australia, the EBITDA, we have had about INR 1,300 crores for FY '24 and quarterly EBITDA is about INR 400 crores.

[Nirav Shah, analyst]

So INR 400 crores in the fourth quarter in INR 1,300 crores in the full year?

[Jugeshinder Singh, executive]

Yes.

[Nirav Shah, analyst]

Okay. And sir, last question. I mean, can you just share the volume guidance between how much are we likely to do in Australian operations because we were doing some capacity ramp-ups over there as well as the MDO business?

[Jugeshinder Singh, executive]

Vinay sir, do you want to take that?

[Vinay Goel, executive]

Yes. So in Australia, we should do close to 14.5, 15 million tonnes this year, FY '25. We'll try to touch 15. That should be between 14 to 15 million tonnes, so going from currently 11.2 million to 14, 15 million tonnes. And as far as mining services is concerned, it would be 30.9 million tonne FY '24, we will definitely try to see if we can touch close 50 -- 45 to 50 should be number.

[Nirav Shah, analyst]

45 to 50 million tonnes.

[Operator]

Next question comes from Girish A. from Morgan Stanley.

[Girish Achhipalia, analyst]

Sorry, I had a basic question around data centers. I wanted to understand the real scope of the business. What exactly is -- like do we -- are we builders? And then do we lease it out, what is the kind of rentals or realization that you get. And then if you can explain the business model a little bit, please? And then in terms of CapEx, what's the current gross block? And how will it shape up as we ramp up this business.

[Jugeshinder Singh, executive]

So from the basic this thing, Adani enterprises through our joint venture at Adani Connect which is a joint venture between Adani Enterprises and Edge Connect, we are doing this business. We currently have one data center, which is operational in Chennai and Noida and Hyderabad are on course of final construction phase into the 2. Recently, we have signed the order book for Pune also.

Now from a perspective of overall business, it's a business where the gross block actually will not come and sit on AL books because it's a joint venture, so there is equity consolidation. But on layman terms, about INR 45 crores is the cost for 1 megawatt. So that's how the construction cost comes in. And on an EBITDA perspective, this business has an EBITDA of about INR 8 crores per megawatt. So that's the overall develop -- the overall numbers on that business.

And in terms of your question on leasing out, yes, we -- the income comes by way of rentals because the space is rented out to the hyperscalers as well as small enterprise businesses. And that is how we get the money. The power cost is generally a pass-through that we get in this business.

For any further like questions, we can take it offline because there are other participants in the queue.

[Operator]

[Operator Instructions] We have a follow-up question from Prateek Kumar from Jeffries.

[Prateek Kumar, analyst]

I have a couple of follow-up questions. You gave guidance of MDO and coal mining business, Australian coal mining business. Any guidance that you can give on IRM business as well in terms of volumes?

[Vinay Goel, executive]

You spoke about iron ore,.

[Jugeshinder Singh, executive]

No IRM business, sir, the trading business.

[Vinay Goel, executive]

IRM business. So IRM business is actual demand supply business. It depends how the country contributed for the import of coal is concerned as well as there are different coal services business at present. So we always try to see that we win as much as possible, but the number clearly depends on the demand supply. So giving a guidance on number is actually going to be difficult.

[Prateek Kumar, analyst]

Okay. And the IRM margins have remained elevated. Is there still some high-price contracts inhibiting the IRM business.

[Jugeshinder Singh, executive]

Please repeat.

[Prateek Kumar, analyst]

Are there some higher price contracts continue to benefit the IRM business in current quarter as well?

[Vinay Goel, executive]

So we had some pending contracts. And then we have to add some more contracts, which we'll take the volume from the current pending volumes to the higher volume. To give average one. So definitely, it will be difficult for me to give you any indication as to what [indiscernible] happen in quarter 1 and FY '25 as far as IRM margin and IRM quantities are concerned. But I can assure you that considering that we are now there in the complete supply chain, and we are #1 as far as the volumes are concerned, we will maintain a good portion in IRM through the year.

[Prateek Kumar, analyst]

Okay. And then last question on leverage. We ended this year's net debt at around INR 41,000 crores FY '24, and with the kind of CapEx, which was highlighted earlier in the call, what is the leverage we are looking at by the end of FY '25.

[Jugeshinder Singh, executive]

So see, Prateek, from a net debt to EBITDA perspective, we have maintained that we will not go above 5%. That's what our target is, and we will continue to ensure that, that does not happen. For if there is a requirement, we will bring in additional equity that will be required. So that's how we will maintain that. Even for FY '25, our guidance for the net debt to EBITDA would be less than 4x. Because we go as a modeler structure into our ANIL business, so the EBITDA gets started, get generated as soon as the project gets over. So that's how will continue there. So that by the overall guidance will not be changing.

[Operator]

Next question comes from Brett Knoblauch from Cantor Fitzgerald.

[Brett Knoblauch, analyst]

Maybe just some guidance-related questions. If we could start on the solar side, I guess, what should we be modeling for module sales for FY '25? And what is your total capacity standing at now?

[Jugeshinder Singh, executive]

So the current capacity is 4 gigawatt out of which we have -- based on that capacity, we have supplied 2.7 gigawatts during this year. And we are looking to reach the capacity utilization of about 90% in that business. So we are looking at about 3.6 to 4 gigawatt volumes in the coming quarter -- coming year.

[Brett Knoblauch, analyst]

And is any capacity to...

[Jugeshinder Singh, executive]

So we are constantly looking at it like there are plans to increase the capacity also because we want to have that 10 gigawatt achieved over a period of next 2 years. So that is already in pipeline, but we generally don't give that guidance on this thing. So yes, it is there. As an overall guidance, we will reach 10 gigawatt as an integrated manufacturing facility.

[Brett Knoblauch, analyst]

Perfect. And then maybe on airports guidance. I guess what are you expecting from passengers for this year? Obviously, you saw a nice growth last year. I know Navi Mumbai is still currently being completed quite help this year, maybe towards the fourth quarter. But any insight into what we should be expecting from a passenger perspective?

[Jugeshinder Singh, executive]

So see, this year, we grew by about 20% in terms of the passenger movement that we had -- and that similar trend should continue with addition coming from Navi Mumbai once we start that, which will be by the end of the coming -- end of FY '25. So then there will be an exponential jump in FY '26 because of the new greenfield project that will be completed. But otherwise, we are looking at it in the same range. With the airlines ordering newer and newer planes and how the market is looking up, we see that the growth will continue in airports.

[Brett Knoblauch, analyst]

And then maybe just on a consolidated basis, any insights as to what you're expecting from a revenue growth or adjusted EBITDA for the year or adjusted EBITDA margin expansion. I would assume with the incubating businesses continuing to outpace growth of the established businesses, we would see some consolidated adjusted EBITDA margin expansion again this year.

[Jugeshinder Singh, executive]

So see, the EBITDA margins will -- EBITDA margins, I would say, would be similar to what we have given this year as such. But in terms of overall EBITDA, there should be a growth because of the copper plant coming online, the wafer plant of 2 gigawatt coming online, wind turbine business stabilizing. So we have a good amount of pipeline that is there and the EBITDA should grow based on that new pipeline.

[Operator]

[Operator Instructions] There are no further questions. Now I hand over the floor to management for closing comments.

[Jugeshinder Singh, executive]

Thank you very much for coming on the call. Looking forward to meet you again in next quarter. And thank you, Sunidhi, Mr. Dhananjay for organizing this. Thank you very much.

[Dhananjay Mishra, analyst]

Thank you sir.

[Operator]

Thank you. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a good day.