Adani Green’s operational capacity grew by 49% to 8,086 MW

Adani Green is the largest green energy company in the country with a total installed capacity of 20,000 MW.

The company said it has commissioned a 325 MW wind power plant in Madhya Pradesh, a 212 MW solar power plant in Rajasthan and India’s first and world’s largest 2,140 MW solar-wind hybrid power plant in Rajasthan.

The capacity expansion is a part of the group’s larger strategy to reduce leverage levels by increasing efficiency across verticals and increasing the group’s overall operating profit.

On April 6, Mint first reported that the Adani Group, in recent meetings with creditors, has outlined plans to reduce the group’s leverage ratio from 4.1x to 3.1x by the end of FY24, mainly due to debt By increasing income rather than reducing it, which is approximately $23 billion in value.

The group plans to increase its operating profit by around 50% 91,000 crore over the next two financial years, helping it bring down its leverage ratio and address concerns of investors and creditors.

Adani’s new strategy assumes significance in the backdrop of a damning January 24 report by short-seller Hindenburg Research, which termed the group as highly leveraged.

Adani Green’s capacity addition could help the group work towards its target of expanding earnings growth to 20-22% during FY2024-25.

The group’s net debt-to-EBITDA ratio was 7.6 times in 2013 and declined to 3.2 in March 2022, but later rose again to around 4.1 during FY23, according to a Mint report. Total debt standing of the group 2.27 trillion by 31 March 2023.

In support of the recent capacity addition, on Friday, Adani Green said its energy sales grew 58% year-on-year to 14.9 billion units in FY23 as compared to 9.43 billion units in FY2012.

“Adani Green aims to achieve renewable energy capacity of 45 GW by 2030 and keep the average tariff below the nationally average power purchase cost,” the company said in an exchange filing on Friday.

Under the company’s solar power portfolio, the company registered a growth of 29% in sales to 10,457 million units in FY23, mainly due to the integration of SB Energy operational portfolio (1,700 MW) and 212 MW in Rajasthan during FY23 Capacity was introduced, resulting in an effective operational capacity increase, the filing said. The integration has resulted in an increase of 90 bps in the capacity utilization factor and an improvement of 50 bps in the grid availability.

Under the wind power business, Adani Green reported a 37% increase in sales to 1,820 million units in FY2023 due to capacity addition from 497 MW to 971 MW.

During the March quarter alone, Adani Green commissioned a 700 MW solar-wind hybrid project, taking the total hybrid capacity to 2,140 MW. The company’s energy generation grew by 69% YoY to 428 million units in the last quarter of FY2023, mainly due to 100% plant availability, the company said.

Adani Green shares closed with a slight decline on Thursday 941.15 per share on the NSE. Indian markets remained closed on Friday on account of Ambedkar Jayanti.