Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adani Green Energy Ltd (BOM:541450, Financial) reported a 20% year-on-year increase in revenue from power supply, reaching INR4,836 crore.
- The company added 2.9 gigawatts of green capacity over the past year, bringing total operational capacity to 11.2 gigawatts.
- Adani Green Energy Ltd is constructing the world's largest renewable energy plant in Kavala, Gujarat, with a planned capacity of 30 gigawatts.
- The company has signed a 25-year PPA to supply 5 gigawatts of solar power to Maharashtra, enhancing its contracted portfolio.
- Battery storage prices have dropped by 66% over the past two years, presenting opportunities for Adani Green Energy Ltd to couple these systems with solar plants for enhanced efficiency.
Negative Points
- The extended monsoon period caused delays in construction, impacting the execution timeline for some projects.
- Minority interest costs have increased, affecting the net profit attributable to Adani Green Energy Ltd shareholders.
- There is a fluctuation in the share of profits from associated JVs, leading to variability in financial results.
- The company faces challenges in securing long-term PPAs for some projects, which could impact financing and project execution.
- Adani Green Energy Ltd's reliance on merchant market sales introduces revenue volatility due to fluctuating market prices.
Q & A Highlights
Q: Can you provide an update on the 6-gigawatt capacity you plan to commission this year?
A: Amit Singh, CEO: We expect to commission 2 gigawatts this quarter and the remaining towards the end of the financial year. There might be a deviation of plus or minus two weeks, but that's our current estimate barring unforeseen circumstances.
Q: Regarding the CNI deal with Google, can you share details on pricing and tenure?
A: Saurabh Shah, CFO: While we can't disclose pricing, it's very accretive to our portfolio. The deal is long-term, and supplies are expected to start by Q3 of the calendar year 2025.
Q: The minority interest seems to have fluctuated significantly. Can you provide guidance on this?
A: Saurabh Shah, CFO: The increase is due to our stake in Mundra Solar Energy Limited and operational capacities in Bhuta. The minority interest will continue to rise as debt reduces due to systematic amortization.
Q: What is the attributable EBITDA and debt for your 11.2-gigawatt capacity?
A: Saurabh Shah, CFO: The total EBITDA for the 11.2 gigawatts is about INR 10,800 crore, with INR 2,500 crore attributable to the joint venture. This will increase as under-construction assets become operational.
Q: How do you plan to fund your merchant capacities, especially from the debt side?
A: Amit Singh, CEO: Financial institutions are confident in our track record and the Indian market. We use a 70/30 or 75/25 debt structure, and both ECB lenders and domestic banks are supportive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
