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    Adani Power

    ADANIPOWERStrong
    Power·3 Nov 2023
    Management Summary

    Adani Power delivered exceptional Q2 FY24 results with 85% recurring EBITDA growth driven by Godda plant commissioning, higher dispatches from strong power demand (all-India demand up 7%), and competitive merchant market positioning. The company underwent a significant financial transformation with debt reduced by INR 10,000 crore in 6 months and major regulatory issues resolved. Mahan Phase 2 expansion order placed with BHEL using split-package contracting. Peak power demand hit record 240 GW nationally, creating a constructive environment for thermal generators.

    Highlights

    8

    • Q2 FY24 Recurring Revenue grew 44% YoY to INR 12,155 crore; Recurring EBITDA grew 85% to INR 4,336 crore

    • Power sales volume at 18.1 billion units with consolidated PLF of 58.3%

    • Prior period income recognition of INR 2,781 crore (regulatory claims, coal shortfall, LPS)

    • PAT at INR 6,594 crore including INR 1,371 crore deferred tax asset recognition

    • Total debt reduced to INR 32,214 crore from INR 42,252 crore (March 2023); massive deleveraging

    • Godda plant achieved operational stability with 69% PLF and 99% availability

    • Godda H1 Revenue INR 3,500 crore, EBITDA INR 892 crore, PAT INR 100 crore

    • Perpetual securities reduced from INR 13,000 crore to INR 9,000 crore

    What Changed3

    vs Q3 FY25

    Guidance items4 → 1 (-3)Risks discussed4 → 3 (-1)Q&A highlights7 → 3 (-4)
    Key financials

    Metrics

    11

    Periods

    2

    Headline

    6
    • Total Debt (Sep 2023)
      ₹32,214 Cr
    • Power Sales Volume
      $18.1B
    • Consolidated PLF
      58.3%
    • Godda H1 Revenue
      ₹3,500 Cr
    • Godda H1 EBITDA
      ₹892 Cr

    Q2

    5
    • Recurring Revenue
      ₹12,155 Cr
      YoY+44%
    • Recurring EBITDA
      ₹4,336 Cr
      YoY+85%
    • Recurring PBT
      ₹2,443 Cr
    • Reported PAT
      ₹6,594 Cr
    • Prior Period Income
      ₹2,781 Cr

    Segment breakdown

    Godda (Bangladesh)
    69% PLF99% Availability₹3,500 Cr H1 Revenue
    List

    Guidance & targets

    1
    CategoryTargetPriority
    Capacity
    Expansion Plan
    ~6,000 MW additional over current 15,000 MW
    		High

    Risks & concerns

    4
    RiskSeverity

    High dependency on prior period/regulatory income for reported profits

    INR 2,781 crore prior period income in Q2 alone from regulatory claims; recurring profitability is strong but headline numbers include significant one-time items — Analyst acknowledged

    medium

    Bangladesh plant fuel cost exposure to imported coal markets

    Godda coal sourced from FSA and open market (largely imported plus some domestic); imported coal price volatility directly impacts margins — Analyst acknowledged

    medium

    Perpetual securities of INR 9,000 crore still outstanding from promoter group

    Down from INR 13,000 crore but still substantial related-party financing; being systematically retired — Analyst acknowledged

    medium

    Areas of Evasion(1)

    • Specific expansion timeline details

    Q&A highlights

    3

    “total revenue was Rs. 3,500 crores, fuel expense was Rs. 2,500 crores, EBITDA Rs. 892 crores and PAT after providing for depreciation and finance cost was Rs. 100 crores”

    First detailed financial disclosure on Godda plant providing clarity on its contribution and cost structure

    asked by Nikhil Abhyankar (ICICI Securities)

    1 min read4 chapters

    Detailed Narrative

    01

    Financial Transformation with 85% Recurring EBITDA Growth

    Q2 FY24 marked Adani Power's emergence as a financially strong company with recurring EBITDA growing 85% to INR 4,336 crore. Total debt reduced by INR 10,000 crore to INR 32,214 crore in 6 months. Debt/EBITDA halved and Fixed Asset Coverage Ratio improved 40%. Perpetual securities reduced from INR 13,000 to INR 9,000 crore. The regulatory era matured with all major domestic coal shortfall issues resolved.

    02

    Godda Plant Achieves Operational Stability

    The 1,600 MW Godda plant commissioned in Q1 FY24 achieved 69% PLF with 99% availability. H1 financials showed Revenue INR 3,500 crore, fuel cost INR 2,500 crore, EBITDA INR 892 crore, and PAT INR 100 crore after depreciation and finance costs. Coal sourced via FSA and open market imports.

    03

    Power Demand Growth Creates Favorable Environment

    All-India power demand grew 7% in H1 FY24 with peak demand hitting record 240 GW. This supported higher dispatches across Mundra, Udupi, Raipur, and Mahan plants. Merchant and short-term market participation benefited from competitive cost positioning.

    04

    Expansion Kickoff with Mahan Phase 2 BTG Order

    BHEL awarded the main BTG contract for Mahan Phase 2 expansion (2x800 MW) using split-package contracting with approximately 50 packages. This marked the first concrete step in the ~6,000 MW expansion plan beyond the existing ~15,000 MW capacity.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.