Adani Power Limited — Q2 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 (78% vs 60% YoY), lower importe...
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.
82%Questions answered1Evaded / deflected11Questions audited
Partial answer
High priority
Update on Lanco Amarkantak, KSK Mahanadi, and Coastal Energen acquisitions.
Asked by Uma Menon, Bernstein
Management gave status but no concrete timeline or completion date.
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 Energen plants.
Sher Singh B. Khyalia, CEO
Both the inorganic acquisitions of Lanco and Coastal, the awards are reserved, and we're expecting that the results will be announced very soon. ... KSK Mahanadi is under bid, and its submission is probably today by end of business hours.
Answered
High priority
Are lower battery costs a threat to merchant thermal portfolio?
Asked by Uma Menon, Bernstein
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 ... 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
Elaborate on PPA tie-up for organic expansion, states, and duration.
Asked by Nikhil Abhyankar, ICICI Securities
Management provided specific states, capacities, and PPA duration.
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Question
how are we looking on tying up for PPA for organic expansion? 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, 1600 megawatt thermal, UP, 1600 megawatt thermal, and Rajasthan 3200 megawatt thermal. ... duration of twenty-five years.
Answered
High priority
How much capacity is tied up in acquisition plants and merchant capacity?
Asked by Nikhil Abhyankar, ICICI Securities
Management gave specific capacity breakdowns for each plant.
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Question
for the plants which 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 megawatts is tied up under the PPA with the Tamil Nadu, and one unit is available under merchant. ... Lanco Amarkantak, the entire 600 megawatts is tied up under the PPA.
Answered
High priority
Merchant sale units, spreads, and comparison to last year.
Asked by Nikhil Abhyankar, ICICI Securities
Management provided specific numbers for revenue, cost, contribution, and YoY comparison.
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Question
how much was the merchant sale in units, if you can give? ... how much spread or cross spreads have we earned on it, and what was it compared to last year?
Sher Singh B. Khyalia, CEO
merchant, we have the revenue realization is INR 0.0745 on an average for the quarter. The cost was INR 2.89 paise, so there was a contribution of INR 4.66 paise. ... Last year, the tariff was 7.57 ... contribution was 3.71, as against the contribution of 4.56 this year.
Answered
Medium priority
Thoughts on keeping capacity merchant vs tying up with PPAs.
Asked by Puneet, HSBC
Management clearly stated the 80-20 strategy.
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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 marketplace situation?
Sher Singh B. Khyalia, CEO
we are keeping around 20% under merchant. ... we want to tie up 80% of the capacity through long-term PPAs, which will give us stable returns, 20% we are keeping open.
Answered
Medium priority
How are you protecting against future carbon taxes? Do PPAs allow pass-through?
Asked by Puneet, HSBC
Management explained the pass-through mechanism and gave a concrete example.
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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, or is that a risk that you'll be exposed to later on?
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. ... already we are having INR 400 per metric ton ... allowed as pass-through under the PPA.
Evasive
Medium priority
Future acquisition opportunities apart from KSK and Lanco.
Asked by Puneet, HSBC
Management refused to name specific targets, only described evaluation criteria.
no names givengeneric criteria only
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Question
what other could you be evaluating or is available in the market?
Nishit Dave, AVP of Investor Relations
we cannot give you names of these targets, but we are evaluating the opportunities as they come. ... We look at certain criteria for selecting ... quality of the equipment, water availability, transmission availability, etc.
Answered
Medium priority
Philosophy to balance risk and reward between merchant and PPAs.
Asked by Bharat Shah, ASK Investment Managers Limited
Management reiterated the 80-20 strategy clearly.
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Question
How do we policy-wise, 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, 20% we are keeping open, whereby we can optimize our returns by taking the advantage of good returns in the market.
Partial answer
Medium priority
Volume growth target relative to energy demand growth.
Asked by Bharat Shah, ASK Investment Managers Limited
Management gave a capacity target but did not quantify volume growth rate relative to demand.
no volume growth rate givenonly capacity target
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Question
what multiple do we see compared to overall energy demand growth in the system?
Sher Singh B. Khyalia, CEO
we are planning to achieve by 2029, 2030, at least 30 gigawatt. ... we have never given in terms of capacity numbers more than this.
Evasive
Low priority
Outcome and future prospects of green ammonia blending at Mundra.
Asked by Raghav, Individual Investor
Management said it's too early to provide any concrete results or roadmap.
no outcome givendeferred to future study
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Question
regarding green ammonia blending project at Mundra site. Would like to know about the outcome of that and future prospects in terms of raw material and raw material cost.
Sher Singh B. Khyalia, CEO
We are carrying out the pilot study. ... we are in the technical feasibility study stage, so would it be difficult to give the future roadmap?
Answered
High priority
Future of electricity supply to Bangladesh and payment situation.
Asked by Lakdeep, Individual Investor
Management provided PPA duration, payment status, and arrears context.
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Question
What is the future of the electricity supply to Bangladesh, and how the payment situation is right now with the Bangladesh?
Sher Singh B. Khyalia, CEO
We have signed the agreement for 1600 megawatt and the PPA is for 25 years. ... we have started getting good payment from last few months. ... on an average, 4 to 5 months of arrears is there for all the power suppliers of Bangladesh.