Adani Green Energy Limited Q1 FY23 Earnings Conference Call Insights

Key highlights from Adani Green Energy Limited (ADANIGREEN) Q1 FY23 Earnings Concall

Q&A Highlights:

• Apoorva Bahadur from Investec asked about the aggressive pump hydro plans and the capacity the company is planning to build and the timelines. Vineet Jain CEO replied that the company has just started working on pump hydro as a business case. It’s difficult to give the capacity and other plans right now. In the next 6-7 months, the company will come back with the details.

• Apoorva Bahadur from Investec enquired if the pump hydro will be used exclusively to meet the grid deficits or it will be utilized to supply renewable power to C&I customers and producing hydrogen. Vineet Jain CEO clarified that all options are possible.

• Apoorva Bahadur with Investec asked about the run rate EBITDA for the operational capacity. Kaushal Shah CFO replied that for 7,000 megawatt, the company has around 6,100 and another 607 megawatt, which the company is in the process of charging that could be around 500.

• Nikhil Devnani of Alliance Bernstein asked about the 76% fixed rate debt, how long is the fixed duration for. Vineet Jain CEO clarified that these are all more or less more than 10 years.

• Puneet Gulati with HSBC asked about the 1275 mw, when the company expects it to start throwing EBITDA so that it’s not charged to capex. Vineet Jain CEO replied that there is a long term access issue which is expected to get resolved in 2Q23.

• Puneet Gulati with HSBC enquired about the new plants being commissioned, what PLF the company is getting on new tech, both on solar and wind. Kaushal Shah CFO replied that in hybrid projects the company could generate 44% CUF. And the breakup of solar and wind, solar 32% and wind 54%.

• Puneet Gulati with HSBC also asked about the slowing down of bidding environment.  Raj Kumar Jain Head BD said the company is not bidding the prices down. The market needs to be corrected. ADANIGREEN has a large pipeline and don’t need to worry about the near term execution.

• Rahul Modi from ICICI Securities asked how much would be an ideal capacity addition that the company would like to see on an annual basis for the next 5-8 years. Kaushal Shah CFO answered that the company is planning 3.5 to 4 gigawatt annually, which is about greenfield. Additionally if something comes inorganic that will be above that number.

• Apoorva Bahadur from Investec asked about the capital cost for wind capacity. Kaushal Shah CFO said that typically it’s INR4-4.5 crores for solar and for wind it is 5.5-6 crores. But it depends on a case to case basis.