Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adani Power Ltd (BOM:533096, Financial) reported a strong quarter with a significant increase in operational capacity, reaching 17,550 megawatts by the end of September 2024.
- The company secured a 25-year power supply agreement with Maharashtra for 1,496 megawatts, enhancing long-term revenue stability.
- Adani Power Ltd (BOM:533096) achieved a 29.2% increase in power sales volume for the first half of FY25, indicating strong demand and operational efficiency.
- The company's credit rating improved, with CARE Ratings assigning an AA stable rating to its debt facilities, reflecting financial stability.
- Adani Power Ltd (BOM:533096) maintained strict control over finance costs, which decreased compared to the previous year, contributing to improved profitability.
Negative Points
- The reported profit before tax for H1 FY25 decreased by 35.5% compared to the previous year, primarily due to the absence of non-recurring one-time income.
- The company's profit after tax for H1 FY25 was significantly lower than the previous year, impacted by higher tax charges and reduced one-time revenue recognition.
- Adani Power Ltd (BOM:533096) faces challenges with receivables, particularly from Bangladesh, although payments have started to improve.
- The acquisition of Coastal Energy and Lanco Kondapalli resulted in negative EBITDA for the acquired entities, indicating initial financial strain.
- The capital work in progress increased significantly, reflecting ongoing investments and potential pressure on cash flows.
Q & A Highlights
Q: Can you quantify the receivables as of September 30, 2024?
A: As of September 30, 2024, our receivables are INR 6,630 crore, equivalent to 790 million USD. Over the last six months, we have received approximately 350 million USD.
Q: Is there a plan to integrate the Goa plant with the domestic grid?
A: Currently, there is no issue with the power supply to Bangladesh, and we are in sync with the Bangladesh grid. We are receiving payments, and there has been an improvement in clearing outstanding receivables. Integration with the domestic grid is not necessary at this point, but it can be considered if required.
Q: Are there plans to increase the stake in Coastal Energy and commission the under-construction capacity?
A: There are no current plans to increase the stake in Coastal Energy. The under-construction capacity of 1,320 megawatts is in Lanco, not Coastal. We expect this capacity to be ready in the next two years.
Q: What are the timelines for the upcoming projects?
A: The Mahan Phase 2 project is expected to be operational by December 2026 to June 2027. Other projects like Raipur and Rajar have started, while others are yet to begin. Orders for supply of BTG have been placed.
Q: What is the overdue amount with the Bangladesh PPA, and what is the payment status?
A: The receivable amount is 790 million USD, with 350 million USD received in the last six months. Payments have increased significantly, with 86 million USD received in October.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
