Increase in revenue due to capacity and generation growth but module prices affect margins | Adani Green Q2 FY22 Result Analysis

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Q2 FY22 Result:

  • Consolidated revenue from operations for the company increased by 111.6% YoY and 32.5% QoQ to Rs. 1,295 crores. The reason for the same is increase in power generation due to increase in capacity and higher demand of electricity.
  • EBITDA for the company has increased to Rs. 770 crores. A YoY growth of 52.8% and QoQ growth at 6.5%.
  • EBITDA margin for the company was impacted as it declined to 59.5% in Q2FY22 from 82.4% in Q2FY21. Q1FY22 margin was 74%.
  • PAT for the company has increased by 431.9% due to lower in base in Q2FY21. Q2FY22 PAT stands at Rs. 100 crores. PAT has declined by (-54.3%) QoQ. Increase in profit can be attributed to increase in revenues and improvement in cost efficiency brought in through analytics in operations. 


  • The current operational capacity of the company is 5,410 MW of which 12% is Wind and 88% is solar.
  • 6,591 of capacity is under execution for the company where 8,283 MW of capacity is near construction. Hence, the total lock-in capacity for the company currently is 20,284 MW.
  • Out of total lock-in capacity, 76% is Solar, 11% is Wind and 13% is hybrid which is a mixture of Wind & Solar.
  • Operational capacity has increased to 5,410 MW in Q2FY22 from 2,800 MW in Q2FY21, a YoY growth of 93%.
  • Operation capacity has increased by 2,610 MW.
    • 725 MW was green field commissioning. (475 MW Solar and 250 MW Wind).
    • Inorganic addition to the capacity was 1,885 MW in solar generation. 1740 MW of the capacity was added at Sep-30 2021. (Acquired 1,700 MW Solar of SB Energy portfolio from SoftBank and Bharti Group. 40 MW of operational solar assets from Essel Green Energy in Odisha).

Business Highlights

  • The overall renewable portfolio has increased to 20,284 MW. The reason for the same is completion of acquisition of SB Energy’s India Renewable portfolio of 4,954 MW. This included 1,700 MW of operational assets.
  • The company was awarded 450 MW of Wind projects from SECI in Oct 2021.
  • The company has signed first set of PPAs for 867 MW with SECI. This was under LOA received for manufacturing linked solar projects with total capacity of 8 GW.
  • Sales of Energy is up by 61% in Q2FY22 at 1,901 million units.
  • Strong operational performance in both Solar and Wind portfolios.
    • CUF of solar portfolio improved by 50 bps YoY at 23.2%.
    • Wind CUF improves by 710 bps YoY at 40.7%
  • Sale of energy increased to 1,901 MW, a growth of 61%. Solar sales increased by 41% to 1,430 MW and Wind sales increased by 185% to 471 MW. The sales of energy increased due to capacity addition and improved Solar & Wind CUF.
  • CUF of Solar plants stood at 21.4% as compared to 21.4% in Q2FY21. The CUF improved due to improved grid availability and consistent high plant availability.
  • Wind plants CUF stood at 42.9% as compared to 30.3% in Q2FY21. The Wind plants CUF improved due to addition of technologically advanced and more efficient wind turbines generators.


  • The total debt stands at Rs. 38,885 crores on Sep-21 when compared to Rs. 18,968 crores of debt in Mar-21. With cash of Rs. 5,085 crores on the balance sheet and Rs. 4,507 crores of short term credit, net debt for the company stands at Rs. 29,292 crores
  • Debt of under construction projects is 25% of total debt at Rs. 9,894 crores. Rest 75% debt of Rs. 28,991 is for operational projects.
  • Long term debt stands at Rs. 33,383 crores, 86% of total debt. Rs. 5,502 crores, 14% of total debt is for short term.
  • Average interest cost for debt in Mar-19 stands 11.1%. Current average interest cost for the company stands at 9% on Sep-21.
  • Majority of the debt (Rs. 14,010 crores) is maturing in FY25.

Acquisition of SB Energy’s India Portfolio

  • The company has acquired SB Energy’s India portfolio. It was acquired at fully completed enterprise valuation of Rs. 26,000 crores (USD 3.5 billion).
  • The total capacity of the portfolio is 4,954 MW of locked in growth.
    • The generation capacity is – Operational: 1,700 MW. Under execution: 2,554 MW. Near Construction: 700 MW.
    • 84% of portfolio is Solar, 9% is hybrid and 7% is Wind.
  • Plant availability stood at 99.7% in H1FY22 and Grid availability was 99.2%.
  • Capacity Utilisation Factor for the portfolio stood at 26.2%.
  • Average tariff for the portfolio is Rs. 2.75/unit.
  • The portfolio has one of the highest quality in India with most of the assets are solar park based projects.
  • 74% portfolio is located in Rajasthan and 17% is located in Andhra Pradesh.
  • The addition of SB portfolio improves operating capacity mix and also lowers portfolio risk profile.
  • 98% of the counterparties for the portfolio are sovereign.

Earnings Call Highlights

  • EBITDA from the acquired operation capacity of SB energy is expected to be around Rs. 1,100 crores.
  • The company is expecting operational capacity between 7,500 MW and 8,000 MW by Mar-22.
  • The Adani group is focusing on complete basket of energy transition i.e. battery storage, renewable generation and green hydrogen.
  • All hybrid projects will be completed during FY22.
  • EBITDA for 5.4 GW operational capacity will be around Rs. 4,600 crores. Gross block for the same is Rs. 28,000 crores.
  • The company will end up with 8 GW of operational capacity by Mar-22. EBITDA for the same will be Rs. 6,700 crores and the debt associated with the same would be Rs. 15,000 crores.
  • Additional Capex being incurred in FY22 is Rs. 19,000 crores. For the year end would be Rs. 48,000 crores.
  • Commissioning plan for FY23 would be 3,500 MW to 4,000 MW.
  • The company has applied for PLI scheme for aggregate 4 GW.
  • Module prices have gone up. Polysilicon is majorly produced in China and the industry is very power sensitive. Due to power cuts in China, a shortage of modules has been created leading to increase in price of the modules. The company expects this to be a temporary phenomenon.
  • Module prices are expected to go down to normal levels from Jan-21.
  • Overall impact of the increased prices is at 3%-4% on capex for overall portfolio.

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