New Delhi: Adani Green Energy Ltd Reports Impressive Q1 FY24 Results; EBITDA from Power Supply Surges by 53% YoY. Adani Green Energy Ltd (AGEL) has released its Q1 FY24 results, showcasing remarkable performance in various aspects of its operations. The company’s EBITDA from power supply has surged by 53% YoY, reaching Rs 1,938 crore. With an operational capacity of 8,316 MW, AGEL proudly maintains the largest operating renewable energy portfolio in the country.
One of the significant contributors to AGEL’s success has been the notable increase in energy sales, which have risen by 70% YoY to 6,023 million units in Q1 FY24. This growth is primarily attributed to strong capacity additions within the company.
AGEL’s solar portfolio’s Capacity Utilization Factor (CUF) has shown improvement, increasing by 40 basis points YoY to 26.9% in Q1 FY24. This enhancement is a result of consistent high plant availability and improved solar irradiation.
The sale of energy from the wind portfolio has also seen an impressive 34% increase, supported by robust capacity additions. However, the wind CUF has slightly reduced due to relatively lower wind speeds compared to the previous year, when wind conditions were more favorable.
AGEL’s solar-wind hybrid portfolio of 2,140 MW reported a strong hybrid CUF of 47.2%, rising by 380 basis points. This remarkable improvement can be attributed to the implementation of new plants equipped with technologically advanced solar modules, including bifacial modules and horizontal single-axis trackers, as well as efficient wind turbines. Additionally, high plant and grid availability, along with improved solar irradiation, have contributed to this growth.
The company’s outstanding performance, seen in revenue, EBITDA, and cash profit, can be largely attributed to the addition of 2,516 MW of capacity over the last year. AGEL’s industry-leading EBITDA margin is a result of best-in-class operations and maintenance practices, enabling higher electricity generation at a lower cost.
AGEL has received a favorable order from the Tamil Nadu Electricity Regulatory Commission, reinstating the Power Purchase Agreement (PPA) tariff of Rs 7.01 per unit (instead of Rs 5.1 per unit) for a 47 MW operating solar project at Kamuthi, Tamil Nadu. This decision will lead to a one-time revenue upside of Rs 103 crore and an annual upside of Rs 14 crore. The one-time revenue will be accounted for upon receipt.
With this order, the entire 648 MW operating solar portfolio at Kamuthi now operates at the PPA tariff of Rs 7.01 per unit.
As of June 2023, the Run-rate EBITDA stands strong at Rs 7,645 crore, and the Net Debt to Run-rate EBITDA ratio is 5.3x. This ratio is well within the stipulated covenant of 7.5x for the holdco bond, demonstrating AGEL’s prudent capital management approach. The deployment of long-term capital has resulted in the operationalization of significant capacities, leading to higher EBITDA and lower leverage levels.
Amit Singh, CEO of Adani Green Energy Ltd, emphasized the company’s commitment to a sustainable future through cleaner and greener energy sources. AGEL aims to grow its renewable power capacity to 45 GW by 2030, with solar, wind, and solar-wind hybrid solutions as major contributors. To facilitate the integration of renewables into the grid, AGEL plans to implement round-the-clock solutions with long-term clean storage structures, such as pumped hydro, thereby contributing to a greener future and reaffirming its dedication to combat climate change challenges.
