H1 Revenues up 157% y-o-y to ₹ 921 crore
H1 EBITDA1up 168% y-o-y to ₹ 842 crore
Ahmedabad, October 31, 2018:Adani Green Energy Limited (AGEL), a part of Adani Group, today announced its operational and financial performance for the first half and second quarter ended 30thSeptember 2018.
Editor’s Synopsis
Financial Highlights
H1’19
- Revenues of ₹ 921 crore, up 157% y-o-y
- EBITDA1of ₹ 842 crore, up 168% y-o-y
- EBITDA2margin of 91%
- Cash Profit3 of ₹425 crore, up 107% y-o-y
Q2’19
- Revenues of ₹ 449 crore, up 167% q-o-q
- EBITDA1of ₹ 402 crore, up 181% q-o-q
- EBITDA2margin of 89%
- Cash Profit3 of ₹ 173 crore, up 101% q-o-q
Operational Highlights
Solar
H1’19
- Capacity utilization factor 21.02%, against 19.84% y-o-y
- Plant availability 99.53%, against 99.88% y-o-y
- Million units sold41800, up 218% y-o-y. Average realization ₹ 5.12/Kwh
Wind
H1’19
- Capacity utilization factor 30.39%, against 18.03% y-o-y
- Plant availability 87.05%, against 88.00% y-o-y
- Million units sold 76, up 69% y-o-y. Average realization ₹ 4.31/Kwh
Q2’19
- Capacity utilization factor 30.96%, against 19.69% q-o-q
- Plant availability 89.57%, against 88.99% q-o-q
- Million units sold 38, up 52% q-o-q. Average realization ₹ 4.30/Kwh
Commenting on the results of the Company, Mr. Gautam Adani, Chairman, Adani Green Energy Limited said, “Renewable energy has been a key component in the diversification of energy resources for a growing India. We firmly believe that the adoption and development of renewable and low cost energy is crucial to the economic and social development goals of the country. India is poised to compete with the rest of the world in augmenting our energy mix and reducing our dependency on fossil fuels.”
Mr. Jayant Parimal, CEO, Adani Green Energy Ltd said, The H1’19 has been phenomenal for our stakeholders with rise of 168% in EBITDA. Being one the leading players in the renewable energy sector, we take pride in achieving this significant growth for the company. The year has shown encouraging results to further strengthen AGEL’s standing. We are working towards accelerating our growth plans to meet the Government’s mission and significantly reduce the cost of power for all consumers across geographies.”
Consolidated Financial Performance :
| FY 2018 | Particulars | H1 ' 19 | H1 ' 18 | Q2 ' 19 | Q2 ' 18 | % Change | |
|---|---|---|---|---|---|---|---|
| 868 | Income from Operations | 921 | 358 | 449 | 168 | 167% | |
| 670 | EBITDA1 | 842 | 314 | 402 | 143 | 181% | |
| 87% | EBITDA Margin2 | 91% | 88% | 89% | 85% | ||
| (15) | Foreign Exchange (Gain) / Loss | 410 | - | 234 | - | - | |
| Finance Cost | |||||||
| 275 | Interest and Bank Charges | 434 | 117 | 240 | 60 | 300% | |
| 122 | Derivative (gain)/loss and Exchange difference regarded as an adjustment to borrowing cost | (119) | 64 | (71) | 31 | ||
| 19 | Add:Other Income | 20 | 8 | 10 | 3 | 233% | |
| 307 | Profit before Depreciation and taxes | 137 | 141 | 9 | 55 | ||
| 448 | Depreciation | 499 | 210 | 271 | 105 | 158% | |
| 1 | Income Tax Expenses | 3 | - | (1) | - | ||
| (77) | Deferred Tax Credit | (103) | (25) | (73) | (23) | ||
| (65) | Profit/(loss) after taxes | (262) | (44) | (188) | (27) | ||
| Share of Profit (loss) of Joint venture3 | 1 | 0 | 1 | - | - | ||
| (65) | Profit/loss after Share of Joint venture | (261) | (44) | (187) | (27) | ||
| 413 | Cash Profit3 | 425 | 205 | 173 | 86 | 101% | |
| (0.48) | Basic and diluted EPS (Rs/share) | (1.68) | (0.32) | (1.20) | (0.20) | ||
| 65.18 | Exchange rate (Rs/$)-Closing | (72.49) | (65.29) | (72.49) | (65.29) | 11% |
Revenues
Revenue in H1’19 increased by 157% to ₹ 921 crore from ₹358 crore and in Q2’19 by 167% to ₹ 449 crore from ₹168 crore primarily on account of increase in operating capacity by 176% to 1,958 MW-AC (Solar-1,898 MW and Wind -60MW) from 708 MW-AC (Solar-648 MW and Wind -60MW) from commissioning of new solar projects with capacity of 1,030 MW-AC and transfer of Renewable Power undertaking pursuant to demerger of 220MW-AC.
EBITDA and EBITDA Margins
EBITDA 1 for H1’19 has increased by 168% to ₹ 842 crore from ₹ 314 crore and for Q2’19 by 181% to ₹ 402 crore from ₹ 143 crore primarily on account of increased generation. EBITDA1 margin during the half year was at 91% compared to 88% in H1’18 and during the quarter was at 89% compared to 85% in Q2’18.
Depreciation and AmortizationDepreciation was at ₹ 499 crore, higher by ₹ 289 crore y-o-y on account of major
Projects being capitalised in Q4’18.
Depreciation was at ₹ 271 crore, higher by ₹ 166 crore q-o-q on account of major
Projects being capitalised in Q4’18.
The Company follows Written down value method of depreciation. The depreciation based on Straight-line method would have been ₹ 184 crore in H1’19, ₹76 crore H1’Y18, ₹ 99 crore in Q2’19, ₹ 38 crore Q2’18.
Foreign exchange fluctuation gain/loss
As on 30 September 2018, there is foreign currency exposure of $686mn consisting of outstanding buyer’s credit, import bills collection and External commercial borrowing, out of which 94% was hedged through a combination of various hedging instruments like forwards, options, CCS Principal & interest hedge. The Rupee witnessed a significant depreciation against the USD, with a decline of 5% and 6% in Q1’19 & Q2’19, which has resulted in a forex loss of ₹ 128 crore & ₹ 163 crore in the respective quarters (net of hedging gain of ₹ 123 crore & ₹ 126 crore respectively). [The net forex loss of ₹ 291 crore for H1’19 is inclusive of exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs amounting to ₹ 130crore as per Ind AS 23 Para 6 (e)]. Higher forex loss is primarily attributable to hedging loss on options, which constituted about 1/3rd of the overall hedged foreign currency exposure.
Finance Cost and other income Interest and Bank Charges during the half year was ₹ 434 crore, up by ₹ 317 crore and during the quarter ₹ 240 crore, up by ₹ 180 crore mainly due to capitalisation of interest cost in corresponding period for companies in Project phase and demerger of Renewable Power undertaking w.e.f. 01 April 2018.
Other income during the half year was up by ₹ 13 crore primarily due to interest income on deposits.
LossaftertaxandEarningsperShare
Loss after tax for first half year was ₹ 261 crore.
EPS for the first half year was at ₹ (1.68) per share.
Cash profit 3 for the half year was ₹ 2.71 per share.
BalanceSheet As on 30 September 2018, gross debt was at ₹ 11,118 crore (including ₹ 1,544 crore of debt given by Adani group companies) and net debt was ₹ 10,541 crore (gross debt less cash and cash equivalents including margin money deposits with banks of ₹ 577 crore). Out of the above said debt, there is a debt of ₹ 565 crore attributable to Projects under implementation and the company expects to draw further debt of approx. ₹ 1,100 crores on projects which are already operational. The debtors for power sales on consolidated basis as on 30 September 2018 stood at ₹443 crore out of which ₹172 crore was unbilled revenue based on accruals and accordingly the debtor days as at 30 September, 2018 was 88 days.
New Projects Over and above the company is implementing 500 MW of solar projects and 1,237 MW of wind projects under various Power Purchase Agreements having a weighted average tariff of ₹ 2.97/Kwh and ₹ 2.72/Kwh respectively. Post completion of the said projects the company’s operational capacity would be 3,695MW.
Notes :
- Calculation of EBITDA excludes foreign exchange (gain) / loss.
- EBITDA margin % represents EBITDA earned from Power Sales. Hence, it excludes cost ₹94 crore and revenue ₹ 95 crore for EPC business & trading of goods.
- Cash profit = EBITDA 1 + Other Income – Interest and Bank Charges - Income tax expenses.
- ncludes units generated during plant stabilization period, against which the revenue has been capitalised. Q1 FY19 ₹15 crore (31.37 Mu’s)
- Operational highlights includes highlights of Joint Venture Company having an operational capacity of 20 MW solar. The company holds 49% in the JV and has agreed to buy remaining stake by January19.
About Adani Green Energy
Adani Green Energy Limited (AGEL), a part of Adani Group, is one of the largest in Renewable power generation in India. The company builds, owns and operates power plants powered by renewable sources of energy like solar and wind. The company has an installed capacity of 1958 MW spread across eleven states in India. In alignment with India’s mission to reduce carbon emissions, AGEL have generated 1472 GWH of energy which have reduced CO2 emission by 650590 MT