Adani Green Earnings Call Q1 FY23: Operational Capacity Growth Up To 5800 MW

Kev revelations were made during the Q1 FY23 earnings call of the green arm of Adani Enterprises, Adani Green Energy Limited (AGEL). Here is a look at them-

 Capacity Growth On An Upward Trend

The operational capacity growth on YoY basis has shot up by 65% to 5800 MW. This growth has been attributed to Greenfield projects and the acquisition of SB Energy India.

The acquisition of SB Energy by AGEL is India’s largest renewables M&A deal

First Hybrid Project

A mention was made of India’s first wind and solar hybrid power generation plant boasting of a 390 MW capacity at Jaisalmer in Rajasthan set up by Adani Green.

The overall capacity of Adani Green Energy (inclusive of partially commissioned projects of 1275 MW) exceeds 7000 MW.

Adani Green has other projects in the offing in Andhra Pradesh, Gujarat, Rajasthan, Maharashtra and Bengal. They are scheduled for completion in the next six months.

Investment From IHC

In this quarter, IHC has invested $500 million in Adani Green Energy.

The pact, inked between the three entities of Adani Enterprises, including, AGEL and Abu Dhabi-based IHC, is expected to throw open doors of investment from UAE into India.

Highest ESG Score in Indian Power Sector

AGEL has received an ESG score of 66/100, the highest in Indian power sector, in CRISIL Sustainability Yearbook 2022.

Solar Portfolio

 AGEL’s solar portfolio CUF improved by 150 bps YoY to 26.5 per cent while the wind portfolio CUF improved by 850 bps YoY to 47.0 per cent- this is the highest ever reported wind CUF by AGEL.

The solar-wind hybrid plant CUF is robust at nearly 44 % with solar at 32% and wind at 52%.

This could be attributed to high grid availability of  99% and high plant availability of 100%.

Upsurge in Sale OF Energy

AGEL has reported an increase in sale of energy by 73 per cent YoY to 3,550 mn units. The CapEX has significantly reduced.
As far as the revenue from power supply is concerned, it is up by 57% to 1328 crores, he concluded.

The EBITDA from power supply is up by 60% with 92% EBITDA margin.

Bidding Environment & Module Prices

The slowdown in the bidding environment was also brought to light during the call, where AGEL maintained that the company is “not bidding the prices down”, while reaffirming in the same breath that “the market needs to correct a bit.” AGEL concluded its response on bidding by saying that it bids where it believes it is the differentiator.

Speaking on the surge in module prices, the company revealed that it has been allocated a manufacturing tender worth 2GW of solar manufacturing capacity, both solar cell and module. While AGEL has a 26% stake in it, the rest of the stake balance is held by its sister companies. It was shared that the capacity is now nearing completion and there is “comfort with respect to supply”.

It may be pointed out here that over the last 18 months, the solar module prices have witnessed a dramatic surge. To add to the woes, the landed cost of solar modules has also increased with the MNRE announcing the imposition of basic customs duty of 25% on imported solar cells. This figure stands at a high 40% with respect to imported solar modules. The GST on the modules have also been escalated.