Adani Green Q2 Results- Profits Grow 49% As Strong Solar Growth Continues

Adani Green added 2140MW of renewable energy from its hybrid projects

Adani Green Energy Limited, the renewable development arm of the Adani group that has set a 45 GW capacity target for 2030, has announced its Q2 FY23 results. Operational capacity has grown to 6724 MW during the quarter.

Revenues from power supply jumped 33% over the corresponding quarter in Fy22, going to Rs 1107 crores in Q2 FY23. Cash profits rose 50% from Rs 401 crore to Rs 601 crores during the quarter. During the quarter the company received a  favourable order from APTEL (Appellate Tribunal for Electricity) for its 288 MW solar plants at Kamuthi, Tamil Nadu that would result in one-time revenue upside of Rs 568 Cr and recurring positive annual impact of ~ Rs 90 Cr. These have not been considered in the current financial results.

Financial Performance: Q2 and H1 FY23

During the quarter, the firm operationalised the largest wind -solar hybrid project in the world, a 990 MW project in Rajasthan. Besides this, it also commissioned Madhya Pradesh’s largest wind power project, a 325 MW project.

The newly commissioned solar-wind hybrid plants of 990 MW deploy bifacial PV modules and horizontal single-axis tracking (HSAT) technology to capture maximum energy from the sun as well as technologically advanced Wind Turbine Generators leading to a high hybrid CUF. The newly commissioned plants are managed by Adani Group’s intelligent ‘Energy Network Operation Center’ (ENOC) platform, which has proven technological capability and has aided AGEL in achieving superior operational performance for its entire renewable portfolio across diverse locations in India.

The strong growth in revenues is driven by greenfield commissioning of 1,315 MW and integration of SB Energy’s operating portfolio of 1,700 MW.

Operational Capacity and Performance

Sale of energy units during the quarter grew 61%, powered by strong growth in the larger solar portfolio 63%, where CUF also increased to 22.1% over 21.4% in the previous quarter. The wind portfolio actually slowed by 9% in terms of units generation, probably owing to a force majeure event at a  150 MW project in Gujarat. The CUF of the solar wind hybrid projects came in at 34.3%. Otherwise, CUF for the remaining wind portfolio came in at 41%. Currently, the firm has average tariffs of Rs 2.99/unit locked in for capacity expansions till 20.4 GW.

The strong numbers from the firm point to its obvious strengths that have held up the remarkable stock market valuations for it so far, even as it continues to execute efficiently across India on renewable energy projects. The firm is expected to continue adding capacity consistently through 2030 to meet its targeted capacity figure of 2030, supported by expansion of the group firms into solar manufacturing in particular, besides other renewable energy ventures.