Adani Green Energy Ltd (AGEL), India’s leading renewable energy company, has reported strong financial results for the quarter and half-year ending on September 30, 2023. AGEL, with an operational capacity of 8,316 MW (including 9,021 MW AC capacity), continues to maintain the country’s largest operating renewable energy portfolio.
One of the remarkable highlights of AGEL’s performance is the substantial increase in the sale of energy, which surged by 78% year-on-year to reach 11,760 million units in the first half of FY24. This remarkable growth can be attributed to robust capacity additions and improved Capacity Utilization Factors (CUF) across solar, wind, and hybrid portfolios.
Specifically, the solar portfolio’s CUF improved by 90 basis points year-on-year, reaching 25.2% in the first half of FY24. This enhancement was driven by improved plant availability and enhanced solar irradiation. Likewise, the wind portfolio’s CUF saw a significant improvement of 360 basis points year-on-year, reaching 40.2% in the same period. This improvement was facilitated by consistent wind speeds and a notable enhancement in grid availability.
Notably, AGEL’s solar-wind hybrid portfolio displayed impressive growth, with the CUF improving by 880 basis points year-on-year, reaching 45.4% in the first half of FY24. This notable improvement was supported by advanced solar modules, horizontal single-axis trackers, and wind turbine generators, coupled with consistently high plant and grid availability.
The company’s remarkable growth in revenue, EBITDA, and cash profits can be largely attributed to its capacity addition of 1,592 MW over the past year and improved CUF. AGEL maintains an industry-leading EBITDA margin, underpinned by its best-in-class Operations and Maintenance (O&M) practices, which enable higher electricity generation at lower O&M costs.
AGEL’s Run-rate EBITDA currently stands at a robust Rs. 7,645 crores, with a Net Debt to Run-rate EBITDA ratio of 4.99x as of September 2023, as compared to 5.9x the previous year. This ratio comfortably remains well within the stipulated covenant of 7.5x for the holding company’s bond.
AGEL’s consistent and impressive performance underscores its leading position in India’s renewable energy landscape and its commitment to sustainable and environmentally friendly power generation.