Adani Green Energy Q2 Results: Net Profit jumps 39% to ₹515 crore, total income up over 30%

Adani Green Energy reported strong earnings for the quarter ended September 2024 (Q2FY25). The Adani Group company's net profit stood at ₹515 crore, up 39 percent year-on-year (YoY) from ₹371 crore in the same period last year.

Meanwhile, the Gautam Adani-controlled renewable power firm's total income increased by 30.4 percent to ₹3,376 crore as against ₹2,589 crore in the same period last year. However, its total expenses also witnessed a 31.3 percent on-year growth to ₹2,837 crore versus ₹2,160 crore in Q2FY24. Furthermore, AGEL has maintained an industry-leading EBITDA margin of 92.2%, underscoring its operational efficiency and commitment to cost management.

"Our financial performance continues to be strong, driven by significant greenfield capacity additions and robust operational efficiency. Entering the C&I space by signing our first contract underscores our commitment to decarbonizing industries, with plans to expand our merchant and C&I exposure to 15% by 2030. Our growth is driven by a robust capital management plan with utmost credit discipline. Adani Green is well on track to achieve its 2030 RE capacity target of 50 GW, including at least 5 GW of energy storage,” said Amit Singh, CEO of Adani Green Energy.

For the first half of the financial year 2024-25 (H1FY25), the company's net profit soared 65 percent to ₹1,144 crore as against ₹694 crore in the same period last year. Moreover, its total income for H1FY25 came in at ₹6,476 crore, up 30 percent from ₹4,979 crore in H1FY24.

Other Highlights

The company's operational capacity grew significantly by 34% YoY, reaching 11,184 megawatts (MW). This expansion was driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, along with 418 MW of solar capacity in Rajasthan and 200 MW of wind capacity in Gujarat.

In line with this operational growth, AGEL achieved a remarkable 20% YoY increase in energy sales, totalling 14,128 million units. This surge in sales was largely attributed to the company's robust capacity additions and strong operational performance, reflecting AGEL's effective resource planning, engineering, and supply chain management strategies. The company's cash profits also witnessed a notable rise, increasing by 27% YoY to reach ₹2,640 crores, further highlighting its financial strength.

AGEL's commitment to project development excellence has been a key factor in its success. The company has consistently expanded its greenfield capacities with support from its partner, Adani Infra India Ltd (AIIL), ensuring effective project management, execution, and assurance, said the firm in he press release.

Achievements

In addition to its operational achievements, AGEL secured a significant milestone by being awarded a 5 GW solar power purchase agreement (PPA) from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL). This agreement provides a substantial boost to AGEL's contracted portfolio, enhancing its revenue-generating capabilities.

The company also made strides in entering the commercial and industrial (C&I) segment, signing its first agreement to power a data center, which is expected to diversify its customer base and revenue streams.

On the financial front, AGEL has taken significant steps towards deleveraging by fully redeeming a USD 750 million Holdco bond, further strengthening its balance sheet and financial position.

Stock Price Trend

The stock ended 1.43 percent lower at ₹1,686 on October 22, 2024. The stock is currently over 22 percent away from its 52-week high of ₹2,173.65, hit in June this year. Whereas, it has rallied almost 107 percent from its 52-week low of ₹816.00, recorded in October last year.

The scrip has surged 86 percent in the last one year and has been muted so far this year, with a 5.5 percent increase. It has been volatile throughout this calendar year. Just in October so far, it has shed 11.5 percent.