Adani Green Energy Ltd (AGEL), the renewable energy arm of the diversified Adani Group, announced financial results for the third quarter and nine months ended 31 December 2022.
Capacity addition & Operational Performance:
• Commissioned 1,915 MW renewable projects in 9M FY23:
✓ 1,440 MW solar-wind Hybrid plants in Rajasthan, India’s first and World’s largest
✓ 325 MW Wind Power Plant, the largest in Madhya Pradesh
✓ 150 MW Solar Power Plant in Rajasthan
• PPAs signed for 450 MW wind and 50 MW solar projects with SECI in Q3 FY23 and Jan 2023 respectively further strengthening the firm pipeline
• Solar portfolio CUF at 24.0% with 140 bps improvement YoY
• Wind portfolio CUF at 27.1% with 610 bps reduction YoY primarily due to one-off disruption in transmission line (force majeure) for 150 MW plant at Gujarat, which is now fully restored
• Newly commissioned Hybrid portfolio CUF stands at strong 34.0% backed by cutting-edge tech
• Sale of Energy increases by 59% YoY at 10,235 Mn units
• Revenue from Power Supply increases by 39% YoY to Rs 3,695 Cr
• Realized 3.8 Mn Carbon Credits generating revenue of Rs. 153 Cr
• Cash Profit increases by 41% YoY to Rs 1,827 Cr
• Run-rate EBITDA stands at a strong Rs. 7,380 crore with Net Debt to Run-Rate EBITDA of 5.6x as of Dec 2022 well within stipulated covenant of 7.5x for holdco bond
Other Key Updates:
• 97% of AGEL’s rated credit facilities are rated between ‘A’ to ‘AAA’ equivalent credit rating scale (India) 1 and rating affirmations are received from majority of the rating agencies in the last few days
• Credit Rating for 648 MW Kamuthi solar plants increased from ‘A+’ to ‘AA-’ by India Ratings backed by improved receivables further improving liquidity cover
• AGEL continues to maintain a strong counterparty profile with 89% sovereign/ sovereign equivalent rated counterparties
• AGEL’s entire operating capacity is now ‘Zero Waste to Landfill’ certified
• Won ‘Leaders Award’ at the Sustainability 4.0 Awards, conferred jointly by Frost & Sullivan and The Energy & Research Institute (TERI)
• Honored with the ‘Platinum Award’ at The Asset ESG Corporate Awards 2022
The Solar CUF and Sale of Energy has improved with integration of high-quality SB Energy portfolio having a CUF of 26.0% in 9M FY23, consistent high plant availability, improved grid availability and improved solar irradiation. Sale of Energy for Wind portfolio has increased significantly backed by strong capacity addition, though, the Wind CUF has reduced primarily due to one-off disruption in transmission line (force majeure) for 150 MW plant at Gujarat, which is now fully restored while.
The newly commissioned solar-wind hybrid plants of 1,440 MW deploy latest technologies such as 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.
“We are making steady progress in our endeavor to lead the way towards large-scale adoption of affordable clean energy in India and we are on track to achieve our long-term renewable capacity addition target. The relentless efforts of our people have enabled development of large-scale hybrid capacities, which are not only the first in India but also the largest in the world. These capacities deploy cutting-edge technologies to harness the power of the sun and enable cost effective power extraction from the wind resources as also they make India future ready with better stability and integration into the national grid.” said Mr. Vneet S. Jaain, MD & CEO, Adani Green Energy Ltd.
The robust growth in revenues, EBITDA and Cash Profit is primarily driven by greenfield commissioning of 1,915 MW. Further, the state-of-the-art Energy Network Operation Center (ENOC) enables real time monitoring of our entire renewable portfolio with information access to the minutest level and automated alerts. With the analytics driven O&M approach, the plant availability is maximized, enabling higher electricity generation and higher revenues. It also helps curtail O&M costs, in turn enabling high EBITDA margins.
“The continued strong performance demonstrates the resilience of AGEL’s business model supported by a robust capital management program with leverage well aligned with the business model. We appreciate that, in the last few days, this has further been reaffirmed by the rating agencies, equity and credit research analysts and various banks, financial institutions, long term investors and other key stakeholders have also reassured their confidence in AGEL’s strong business model.” said Mr. Vneet S. Jaain, MD & CEO, Adani Green Energy Ltd. He further said, “I am also proud of the continued progress towards our ESG commitment and we are determined to continue our journey forward in this direction.”