Adani Power Limited — Q1 FY25
Adani Power delivered a strong Q1 FY25 with 29% revenue growth to INR 14,717 crore and 57% EBITDA growth to INR 6,290 crore, driven by higher PLF of 78% (vs 60% YoY) and lower i...
bullish
high
✓ Verified against BSE filing
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.
88%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
Update on acquisition timeline for Lanco Amarkantak, KSK Mahanadi, Coastal Energy.
Asked by Brahat Shah, ASK Investment Managers
Management gave a vague timeline without specific dates or milestones.
no specific timeline givenvague 'very soon'
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Question
if you could please provide an update on the completion of acquisition timeline on Lanco Amarkantak, and if there are any updates on other acquisitions plans such as KSK Mahanadi and the Coastal Energy plans.
Dilip Jha, CFO
Both, you know, the inorganic acquisitions of Lanco and, and Coastal, the awards are reserved, and we're expecting that the result will be announced very soon.
Answered
High priority
Are lower battery costs and SECI tariffs a threat to merchant thermal?
Asked by Brahat Shah, ASK Investment Managers
Management directly addressed the question, explaining why batteries are not a threat.
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Question
with the lowering costs that we're seeing on batteries and the low tariffs that we saw... do you see these as a threat to the merchant thermal portfolio?
Sher singh B. Khyalia, CEO
battery is yet not really competitive as compared to the thermal... solar power would be available only for 7-8 hours, and rest of the 16 hours, the base load would be made from the thermal only.
Answered
High priority
How are we looking at tying up PPAs for organic expansion and which states?
Asked by Brahat Shah, ASK Investment Managers
Management provided specific states, capacities, and PPA duration.
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Question
how are we looking on tying up for PPAs for organic expansion? And which states have come out with tenders, and what will be the duration of this PPA?
Sher singh B. Khyalia, CEO
three states are already there with their bids. Maharashtra, 1,600 MW thermal, UP, 1,600 MW thermal, and Rajasthan, 3,200 MW thermal... duration of 25 years.
Answered
High priority
For acquisition plants, how much capacity is tied up and merchant available?
Asked by Brahat Shah, ASK Investment Managers
Management gave specific breakdown of tied-up and merchant capacity for each acquisition.
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Question
For the plants which we are considering for acquisition, can you speak on how much of the capacity is tied up already, and is there any merchant capacity available?
Sher singh B. Khyalia, CEO
In case of Coastal... one unit of 600 MW is tied up under the PPA with the Tamil Nadu, and one unit is available under merchant. In case of Lanco Amarkantak, the entire 600 MW is tied up... 1,320 MW... is open.
Answered
High priority
What was merchant sale in units and spreads compared to last year?
Asked by Brahat Shah, ASK Investment Managers
Management provided specific numbers for revenue, cost, and contribution for both years.
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Question
almost 22% of the revenues are come from merchant, so how much was the merchant sale in units... and what was it compared to last year?
Sher singh B. Khyalia, CEO
the revenue realization is INR 7.45 on an average for the quarter. The cost was INR 2.89, so there was a contribution of INR 4.56. Last year, the tariff was INR 7.57... coal cost was INR 3.86... contribution was INR 3.71.
Answered
Medium priority
Are merchant sales mostly bilateral or exchange?
Asked by Brahat Shah, ASK Investment Managers
Management gave a clear split between bilateral and exchange sales.
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Question
mostly the sales will be in medium-term or short-term PPAs or bilateral trade, but bilateral market?
Sher singh B. Khyalia, CEO
It is mostly bilateral, less than one year... 70%-80% is tied up for less than a year under the bilateral agreements, and balance is sold through the power exchange.
Answered
High priority
Thoughts on keeping merchant capacity open vs tying up with PPAs?
Asked by Puneet, HSBC
Management clearly stated the 80-20 strategy for PPA vs merchant.
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Question
Would you want to keep any more capacity open for merchant, or would you rather tie it up with PPAs, given the current demand supply situation?
Sher singh B. Khyalia, CEO
we are keeping around 20% under merchant... we don't want to expose us for market risk more than the 20%.
Answered
Medium priority
Is credit available for merchant capacity or must use internal accruals?
Asked by Puneet, HSBC
Management confirmed credit availability and gave a specific example.
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Question
Availability of credit, is there credit available for the merchant part of the capacity as well? Or would you have to fund it out of your internal accruals?
Sher singh B. Khyalia, CEO
Credit is available nowadays even for merchant also... In case of our Mahan project, we have tied up capacity of 1,320 MW out of 1,600 MW. Partial capacity is already considered by the financial institutions for funding.
Answered
Medium priority
How are you protecting against future carbon taxes? Do PPAs allow pass-through?
Asked by Puneet, HSBC
Management directly answered that carbon taxes would be passed through as change in law.
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Question
how are you protecting yourself against potential future carbon taxes? Do the PPAs have a clause which allow you a pass-through?
Sher singh B. Khyalia, CEO
any carbon tax would be obviously would be a change in law, and therefore it would be passed through under the PPA.
Evasive
Medium priority
What other acquisition opportunities are you evaluating besides KSK and Lanco?
Asked by Puneet, HSBC
Management declined to provide specific names or details of potential acquisitions.
refused to name targetsvague criteria
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Question
Can you also talk about the future acquisition opportunities apart from the KSK and Lanco? What other could you be evaluating or is available in the market?
Nishit Dave, AVP Investor Relations
I cannot give you names of these targets. But we are evaluating the opportunities as they come... we look at certain criteria for selecting...
Answered
High priority
How do you balance risk and reward between merchant and PPAs?
Asked by Brahat Shah, ASK Investment Managers
Management reiterated the 80-20 strategy clearly.
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Question
How do we prioritize? What is our philosophy and strategy to balance risk and reward between merchant and the PPAs?
Sher singh B. Khyalia, CEO
we want to tie up 80% of the capacity through long-term PPAs, which will give us stable returns. And 20% we are keeping open...
Answered
High priority
What volume growth rate are you aiming for over 5-6 years?
Asked by Brahat Shah, ASK Investment Managers
Management confirmed the 30 GW target, implying ~15% CAGR, and did not provide a higher number.
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Question
So, between in, volume terms, probably we'll grow at the rate of 15%, over 5, 6 years. I thought we are looking at achieving a much better number than that.
Sher singh B. Khyalia, CEO
We have never given in terms of capacity, numbers more than this. So this is our announced and notified capacity... we are going to have capacity about 30 gigawatt, as against today's 15 gigawatt.