Adani Green Energy Increases Income but net Profit Drops 82% in Q2

Adani Green Energy while reporting a slight increase in its total income has also reported a decline of over 82% in its consolidated net profit for Q2 2020.

Adani Green Energy has reported its financial results for the second quarter (Q2) of the financial year after its Board of Directors approved the results. The firm while reporting a slight increase in its total income Year-on-Year (YoY), has also reported a decline of over 82 percent in its consolidated net profit for the September quarter (YoY).

The total income of the company rose to Rs 718.14 crore in the quarter from Rs 711.96 crore in the same period a year ago. While, its net profit took a big hit to stumble to Rs 17.57 crore from Rs 102.29 crore during the same period last year. The firm has cited higher expenses as the reason for the big gap in the profits.

Gautam Adani, Chairman, Adani Green Energy Ltd said in the statement, “the company is coming together in line with our ambition of achieving of renewable power capacity of 25 GW by 2025 and becoming the world’s largest renewable power company by 2030.”

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He also recalled that at the historic Paris climate conference in December 2015, Prime Minister Narendra Modi made an astonishing promise to the world that India would lead the climate change revolution setting the target of commissioning renewable capacity of 175 GW in India by 2022. “Today, India is amongst the only eight nations on track to meet their COP 21 commitments. And the Adani group is committed to support this unwavering promise and will continue to support the nation’s transition towards green energy. We are delighted to expand our joint venture with other global players and are committed to growing our renewables platform.”

During the quarter the firm also completed the acquisition of the 205 MW operating solar assets from Essel group located in Punjab, Karnataka and Uttar Pradesh. The firm had later transferred these assets to its JV with TOTAL, for an estimated value of Rs 1632 crore. TOTAL has invested Rs 310 crore in the JV pursuant to the transaction which takes the total operating renewable portfolio under the JV to 2,353 MW.

Vneet S. Jaain, MD & CEO, Adani Green Energy Ltd said, “Adani Green is rapidly moving towards a sustainable future through its focused approach on competency building, operational excellence and putting in place robust systems and processes. In line with our goal of achieving 25 GW of installed capacity by 2025, we have adopted a transformational project development approach to help rapid capacity scale-up and are working on de-risking of the project pipeline through 3 years of advanced site resource estimation, design planning, supply chain planning and so on. We are also proactively implementing industry best practices for ESG with a view to enhance stakeholders value. The financial results for H1 FY21 provide testimony to the strength of AGEL’s business model.

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“AGEL is setting up a revolving construction facility that will help in meeting the necessary funding requirement at construction stage for the upcoming projects. The projects will be refinanced with international bond issuances once the COD is achieved and the construction facility will be rolled over and be available for financing of the next phase of construction.”

The firm, which enjoys rich valuations on the stock markets, will have its task cut out to justify those valuations in the coming quarters.

[Updated]

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