Adani Airports eyes 20 per cent growth with Navi Mumbai project poised to take off in FY25
Adani Airports, the aviation arm of Adani Enterprises, is eyeing robust growth as it gears up for the launch of the Navi Mumbai airport project by the end of the fiscal year 2024-25 (FY25).
According to Deputy Chief Financial O¥cer Saurabh Shah, the company expects an exponential surge in its operations with the completion of the greenfield project. “This year, we grew about 20 per cent in terms of passenger movement. The trend should continue with additions coming from Navi Mumbai once we start that, which will be by the end of the coming year — at the end of FY25. So then, there will be an exponential jump in FY26 because of the new greenfield project that will be completed,” Shah said.
With seven airports, Adani Airports now serves 23% of India’s total air passenger base
GAME -CHANGER
The completion of the Navi
Mumbai airport project is touted to be a game-changer for Adani Airports, as it anticipates a 20 per cent growth trajectory for the current fiscal year, according to the company. Beyond FY25, the company foresees an exponential jump in operations fueled by the new greenfield project. With a robust financial performance and strategic expansions underway, Adani Airports is poised to further solidify its position in India’s aviation landscape.
An aviation industry report by CAPA India predicts a surge in Indian air travel. By March next year, Indian carriers are expected to have orders for a whopping 2,000 aircraft, reflecting long-term growth in both domestic and international travel, it said.
CRISIL, in its recent report, said that passenger tra¥c should ascend 18–20 per cent this fiscal year (on-year), comfortably surpassing the prepandemic level, with business and leisure travel soaring. This trajectory is expected to sustain next fiscal year, too, given economic growth.
Q4 PERFORMANCE
The company witnessed a 111 per cent increase in profit before tax (PBT) in the fourth quarter of FY24, amounting to ₹29 crore, marking a significant turnaround from the previous fiscal’s loss of ₹275 crore in the same quarter. Revenues for the segment saw year-on-year growth of 33 per cent, totalling ₹2,156.39 crore for Q4 FY24 and ₹7,905.11 crore for the entire fiscal.
Adani Airports has also reduced its yearly losses to ₹64 crore in FY24 from ₹538 crore in the preceding fiscal, demonstrating a positive trajectory in its financial performance. The Airports segment’s contribution to the overall earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged to 45 per cent in FY24, amounting to ₹2,437 crore.
With seven operational airports, including Mumbai, Ahmedabad, Thiruvananthapuram, Jaipur, Lucknow, Guwahati, and Mangaluru, Adani Airports currently serves 23 per cent of India’s total air passenger base. Among these, Mumbai airport leads in passenger tra¥c, handling 13.9 million passengers in Q4 FY24, followed by Ahmedabad airport with 3.1 million passengers.
“The emerging core infra businesses comprising the ANIL Ecosystem, Airports, and Roads are making significant strides in their operational performance. The contribution of these businesses to the overall EBIDTA has consistently increased to 45 per cent for FY24,” the company stated.