Adani Green Energy Limited — Q2 FY24
Adani Green Energy reported a strong H1 FY2024 with revenue from power supply up 66% YoY to INR 4,029 crore and EBITDA up 58% to INR 3,775 crore, driven by a 78% increase in ene...
bullish
high
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered4Evaded / deflected12Questions audited
Partial answer
High priority
Plans for refinancing $750M holdco and $500M RG1 bonds due FY25.
Asked by Puneet Gulati, HSBC
Gave qualitative assurance but no precise cost for RG1 refi; holdco repayment not a refi.
no specific cost guidance for RG1deferred to group liquidity for holdco
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Question
My first question is with respect to the refinancing. I guess, a large chunk is due in FY 2025, and this was largely dollar-denominated debt. What are the plans for that, and what kind of cost of debt are you expecting for that refinance?
Phuntsok Wangyal, CFO
As far as Holdco bond is concerned, as I said, it will be repaid actually. ... RG-One bonds, we are on track ... will be only refinanced through USD PP market. ... we don't expect any material increase in effective cost of refi ... compared to the cost of borrowing ... near to 9.6%.
Evasive
Medium priority
Mix of C&I in total and operational portfolio.
Asked by Puneet Gulati, HSBC
Answered about merchant, not C&I; no specific C&I percentage given.
did not give C&I mixconflated merchant with C&I
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Question
And second, in your new portfolio, what is the mix of C&I in the entire portfolio as well as the operational assets?
Raj Kumar Jain, Head of Business Development
So out of the 20.4 gig, we have close to 3% as the non-contracted portfolio. When I say non-contracted, it is basically merchant. Not on the C&I. We have active discussions on the C&I bit as well.
Partial answer
Medium priority
Progress on manufacturing-linked tenders and unsigned tenders.
Asked by Puneet Gulati, HSBC
Gave qualitative progress but no concrete signing dates or counterparty details.
no specific timeline for signingno names of counterparties
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Question
And on the manufacturing-linked tenders, is there any progress, any timeline which has been given now? And there were still some unsigned tenders. Have they got signed?
Raj Kumar Jain, Head of Business Development
We are now getting into the execution phase of these manufacturing link contracts. ... With respect to the unsigned capacities, we are in very, very advanced discussions and expect that within this quarter, the balance capacity should be signed up as well.
Evasive
High priority
Commissioning plan guidance for FY25, FY26, and balance FY24.
Asked by Puneet Gulati, HSBC
Only reiterated FY24 target; no forward guidance for FY25/26.
no FY25/26 numbersdeferred to later
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Question
And lastly, if you don't mind, can you give us some guidance on the commissioning plan for FY 2025 and 2026, and then balance for 2024 also?
Amit Singh, CEO
Today we are projecting 2.83 gigawatt as part of our financial year. ... we are targeting in that neighborhood. More color we will provide later part of this year.
Answered
High priority
Is TotalEnergies investment all equity or mixed with debt?
Asked by Nikhil Nigania, AllianceBernstein
Clearly stated it is 100% equity and provided valuation details.
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Question
My first question is on the investment from TotalEnergies. ... What I want to understand is the investment all equity, or is it a mixture of equity and debt or equity ventures like it was last time?
Phuntsok Wangyal, CFO
This is a full equity investment in the nature of equity, 100%. ... it's a pre-money value for those two assets. ... the value has been determined at $300 million.
Partial answer
Medium priority
What part of revenue is one-time income, especially land purchase INR 120cr?
Asked by Nikhil Nigania, AllianceBernstein
Did not clarify the INR 120cr land purchase; explained LPS as one-time but not the specific item.
did not address land purchase itemfocused on LPS instead
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Question
The second question I had was regarding the quarterly results. So wanted to understand, what part of the revenue is a one-time income? I could see one item related to a land purchase of, I think, about INR 120 crore.
Phuntsok Wangyal, CFO
Under the revenue from power supply, one time, there is nothing one time, actually. ... Other income has got LPS element. ... around INR 54 crore ... then another element ... approximately 180 CR, out of which, approximately INR 60 crore, we have already received it.
Partial answer
High priority
Reason for slowdown in capacity addition and confidence in 2.8GW guidance.
Asked by Nikhil Nigania, AllianceBernstein
Explained reason but gave no concrete evidence or milestones to back confidence.
no specific milestonesno detailed execution plan
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Question
It's been on the plan for the year. ... given that we have done hardly 200 MW in the first half ... what was the reason for the slowdown in the last six months? And, B, how do we get confidence on being able to execute so much in just six months for the full year guidance?
Amit Singh, CEO
There is a bit of a cycle of these projects. ... we had to spend a lot of time and effort in putting the baseline infrastructure ... which we successfully completed. ... we are seeing very rapid progress. ... we're very confident of our team's ability to deliver.
Partial answer
Medium priority
Quantum of installed power sold this quarter and same quarter last year.
Asked by Apurva Bahadur, Goldman Sachs
Provided half-year figures instead of quarterly; last year number was approximate.
gave half-year not quarterlylast year number approximateexact not available
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Question
So can you please share the quantum of installed power sold during the quarter, and what was the same number, same quarter last year?
Phuntsok Wangyal, CFO
Informed power for this one, okay, half year is nearly going to be INR 77 crore, actually. ... Last year was going to be towards nearly, I think for this half year would have been approximately between INR 800 crore-INR 900 crore. Exact number is not readily available to me.
Evasive
Medium priority
Update on plans for pump storage projects.
Asked by Apurva Bahadur, Goldman Sachs
Gave no concrete project names, capacities, or locations; deferred to year-end.
no specific project detailsno timeline for FID beyond vague
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Question
Sir, any update on your plans for pump storage?
Amit Singh, CEO
On the pump storage, we have quite a few projects in the queue. ... we are nearing completion of one of the projects where we will be taking a FID. ... I feel very confident that we will have that update for you before end of this financial year.
Evasive
High priority
Risk of module import if commissioning slips to April post-ALMM deadline.
Asked by Puneet Gulati, HSBC
Avoided direct answer on ALMM implications; suggested offline discussion.
did not directly address ALMM riskoffered to connect offline
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Question
I want to understand how would the risk play out if you were to import these modules, but the commissioning gets slipped by, say, 5 odd months, 5 odd days, and moves to April? Would you still be allowed to commission?
Raj Kumar Jain, Head of Business Development
Our current plans ... are way prior to their contracted SCOD dates. We do not have any risk, even if my plan gets delayed by a couple of months. ... There are projects which are supposed to comply with the ALMM requirement. There are projects which are okay without the ALMM requirement.
Partial answer
High priority
Timeline to reach 20 GW operational capacity from current ~8 GW.
Asked by Ravindra Nayak, Sunidhi Securities
Gave a rough timeline but conditional on execution ramp-up; no firm commitment.
timeline is approximatedepends on 5+ GW execution
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Question
Can you just throw some light on the horizon by which, where the operational capacity would rise to 20 GW from the current around 8 GW?
Raj Kumar Jain, Head of Business Development
Exit should be around 11-ish by end of this financial year. ... we are ramping up our capability towards 5+ every year. I think the number is then known to you, where it probably would take 2 years or less after this financial year to reach this number.
Answered
Medium priority
PLF achieved on hybrid portfolio on annualized basis.
Asked by Dhruv Muchhal, HDFC AMC
Provided H1 PLF and annual expectation; answered directly.
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Question
So just wanted to understand, what kind of PLFs are you achieving on an annualized basis? Is it broadly in line with what you were targeting?
Raj Kumar Jain, Head of Business Development
For the H1, we have reported the numbers at 45.4%, across the four projects of hybrid, which we have 240 megawatt. The achievement has been very much in line with what we had expected. ... we should be able to get around that number and probably slightly higher.