Adani Green net profit jumps 16% to ₹121 crore in Q4

Net profit of Adani Green Energy Ltd rose 16% year-on-year to ₹121 crore in the quarter ended March 2022. The Gautam Adani-led renewable energy company's net profit stood at ₹104 crore in the year-ago period.

Shares of Adani Green tanked 5.6%, or by 159 points, to ₹2,671 apiece on the National Stock Exchange as domestic stock benchmarks - Sensex and Nifty - tanked 2.29% each after the Reserve Bank of India (RBI) hiked the repo rate in a surprise move. The company's market cap stood at ₹4.17 lakh crore on Wednesday.

Adani Green's total income rose to ₹1,587 crore in the fourth quarter, from ₹1,082 crore in the same period a year ago. Total income for the full fiscal jumped to ₹5,548 crore from ₹3,520 crore in 2020-21.

During the financial year 2021-22, the company's net profit soared to ₹489 crore from ₹182 crore in the previous year.

This comes a day after the company received the approval of shareholders for the issuance of over 2 crore shares worth around ₹3,850 crore on a preferential basis to Green Energy Investment Holding RSC Ltd. The current principal shareholder of Green Energy Investment Holding RSC is IHC Capital Holding LLC.

Fortune India last month reported that International Holding Company (IHC), a conglomerate based in the UAE, will invest $2 billion as primary capital in three Adani Group companies.

"Not only is our investment roadmap in the green energy value chain unmatched by any other portfolio of energy and utility businesses but we have also been consistently setting new industry benchmarks in efficiency, performance and capacity development. Through our domain expertise and our ability to execute projects rapidly, we are accelerating the pace of energy transition to honour India's commitments to a sustainable future," says Gautam Adani, chairman, Adani Group.

Last month, Adani toppled billionaire investor Warren Buffett as the fifth richest person on the planet. The Gujarat-based tycoon's wealth surged over $45 billion this year, making him the biggest gainer year-to-date, according to the Bloomberg Billionaires Index.

For Adani Green, the last fiscal year has been very eventful, says Vneet S Jaain, managing director & CEO of the renewable power producer. "We successfully completed acquisition of the high quality SB Energy portfolio which has been truly value accretive as evident in the overall improvement in operational performance and further strengthening of the counterparty profile. At the same time, we have fulfilled our commitment to fast-track greenfield renewable capacity development."

"We are aiming to integrate newer technologies that will improve the efficiency of power generation while also lowering the cost of electricity," Jaain says.

Adani Green, the world's largest solar power developer, plans to build 45GW renewable capacity by 2030. In October 2021, it completed the largest M&A in India's renewable space by acquiring SB Energy, an 80:20 joint venture between Japan-based SoftBank Group and Bharti Group, for ₹26,000 crore.