Release Date: April 29, 2025
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) achieved a record addition of 3,309 megawatts of new capacities in FY25, the highest by any renewable company in India.
- The company surpassed USD 1 billion in EBITDA, with energy sales increasing by 28% year-over-year.
- Revenue from power supply grew by 23% to INR 9,495 crores, and EBITDA increased by 22% to INR 8,818 crores.
- Adani Green Energy Ltd (BOM:541450) has a comprehensive capital management framework to fund growth up to 50 gigawatts by 2030 while maintaining strict credit discipline.
- The company maintains top rankings from global ESG rating agencies, being ranked number one in Asia by ISS ESG and among the top 10 by Sustainalytics.
Negative Points
- The company faces challenges related to the movement in bond prices due to global markets and US treasury rates.
- There are ongoing legal issues involving individuals associated with the company, which could impact its reputation.
- The company needs to secure additional equity and debt financing for its long-term target of 50 gigawatts by 2030.
- Adani Green Energy Ltd (BOM:541450) is not currently considering bond buybacks, which could be a missed opportunity to capitalize on attractive dollar prices.
- The company is still in the early stages of exploring new technologies like pump storage and battery storage, which could pose execution risks.
Q & A Highlights
Q: What is the year-end cash balance for RG1 and RG2, and are there any plans for bond buybacks?
A: The cash balance for RG1 is approximately INR600 crores and for RG2, it's around INR700 crores. Regarding bond buybacks, the company is not currently planning buybacks for these amortizing bonds, but may consider strategic buybacks in the future if market conditions are favorable.
Q: Can you provide guidance on the capital expenditure for FY26 and the funding status for the 50 gigawatt target by FY30?
A: For FY26, the company plans a capital expenditure of INR31,000 crores, which is fully funded. The 50 gigawatt target by FY30 is also fully funded from an equity perspective once all warrants are converted. Debt funding is ongoing, with a $3.4 billion construction facility and a $1.2 billion non-fund-based limit available.
Q: Is Adani Green Energy considering expanding into pump storage hydro and battery storage projects?
A: Yes, the company is exploring both pump storage and battery storage projects. The first pump storage plant, Chitravathi, is set to be commissioned by September 2027. The company sees significant opportunities in these areas and is poised to take advantage of the growing demand for round-the-clock renewable power.
Q: What is the status of the DOD case and MTSAC case involving the company?
A: The cases are against individuals, not the company. An independent review has been conducted, and all necessary information has been shared publicly. The company is not a party to the case and has no further updates on its progress.
Q: What are the expected internal rates of return (IRR) for new storage projects compared to traditional solar or wind projects?
A: The IRRs for storage projects, including pump storage and battery storage, are expected to be higher than traditional solar or wind projects by a couple of percentage points. The exact IRR depends on specific project conditions, such as site and capital efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
