Adani Green Records 40% Revenue Increase As New Renewable Projects Begin Generation

Adani Green Energy Limited (AGEL), the renewable energy arm of Adani Group, has announced its financial report for the first quarter (Q1) of the financial year (FY) 2020, ending June 30, 2019.

In the quarter, the company’s total revenue stood at ₹6.61 billion (~$ 92.1 million), an increase of 40% year on year. The company announced a revenue of ₹5.54 billion (~$ 77.26 million) from power generation for Q1 of FY 2020, an increase of 17% year-over-year (YoY).

The earning before interest taxes depreciation and amortization (EBITDA) for Q1 of FY 2020 was ₹4.96 billion (~$69.18 million), an increase of 13% due to the rise in its operating capacity. The EBITDA margin from power sale was 90% for the same period. The depreciation stood at ₹48 billion ($ 34.60 million), higher by 9% YoY because of projects capitalized in the fourth quarter of FY 2019.

Consolidated Financial Services

Source: Adani

The total portfolio of AGEL is 5,290 MW at present, out of which 2,220 MW of renewable energy capacity is operational. The company’s capacity utilization factor (CUF) is 25.31% for solar projects, which is near P50 performance, the highest level of targeted performance. The average tariff for solar projects is ₹5.10 (~$ 0.07)/kWh. Wind projects have a CUF of 35.85% with the average tariff of ₹3.94 (~$ 0.054)/kWh.

The company won bids for 130 MW of wind and 600 MW of hybrid projects in Q1 FY 2020. In June, Adani Renewable Energy Park (Gujarat) Limited, a wholly-owned subsidiary of AGEL, won a 600 MW of solar-wind hybrid power projects in an auction conducted by the Solar Energy Corporation of India (SECI).

Commenting on the results, Ashish Garg, the CFO of the company, said, “The operational portfolio is performing close to P50 levels, implying that we are very close to the targeted performance. This will result in a lower payback period of about six years for the operational portfolio. The company is moderately geared at less than 5.5 times on net debt to EBIDTA basis. Going forward, as we are adding more capacity to our development portfolio, cash release from existing operational project will be utilized as growth capital, to add more capacity thus creating enhanced shareholder’s returns.”

In May 2019, Adani Green announced its operational and financial performance for the financial year (FY) 2019 and the fourth quarter ending March 31, 2019. The financial statement shows that for FY 2019, its revenue stood at ₹20.58 billion ($295 million) from the earlier ₹14.8 billion ($212 million), up 39% YoY.

Then in June 2019, the company had announced it would raise $500 million through green bonds.