Adani Green Energy rises 3% post Q2; here’s why

Shares of Adani Green Energy climbed 3% in intraday trade on the Bombay Stock Exchange (BSE), in sync with the broader market, after the Adani Group company reported solid growth in its top and bottom line for the September quarter of 2022. The largecap stock has risen for seven out of nine trading sessions, gaining 6.5% during this period.

On Friday, Adani Green Energy share price opened 1.9% higher at ₹2,214.95, against the previous closing price of ₹2,172.85 on the BSE. Extending opening gains, the counter surged 3% to hit an intraday high of ₹2,238, while market capitalisation increased to ₹3.48 lakh crore. On the volume front, 0.2 lakh shares changed hands over the counter on the BSE, against the two-week average volume of 0.55 lakh stocks.

The share price of billionaire Gautam Adani-led company has risen 79% in the last one year, from its 52-week low of ₹1,211.90 on November 11, 2021. However, it is currently down 26% from its 52-week high of 3,048 touched on April 19, 2022. On the year-to-date (YTD) basis, the stock has given a return of 63%, while it has fallen 17% in the past six months. The Adani Group stock has delivered a massive return of more than 7,000% to its shareholders since its listing in June 2018.

For the July-September quarter of the current fiscal (Q2 FY23), Adani Green Energy Ltd (AGEL), the renewable energy arm of the Adani Group, has posted 49% growth in its consolidated net profit at ₹149 crore as compared to ₹100 crore in the year-ago period, driven by higher revenues.

The total income of the company grew to ₹1,686 crore, from ₹1,411 crore in the same period a year ago. “The solid growth in revenues is driven by greenfield commissioning of 1,315 MW and integration of SB Energy’s operating portfolio of 1,700 MW,” the company said in an exchange filing on Thursday.

“We are extremely proud of our teams for enabling the rapid development of India’s first and the world’s largest solar-wind hybrid cluster of 990 MW as well as Madhya Pradesh’s largest wind plant of 325 MW while ensuring cost effectiveness and the highest quality standards. With our focus on delivering the cheapest green electron, we have continued to deploy the latest and most innovative technologies to maximise electricity generation at a lower cost” said Vneet S. Jaain, MD & CEO, Adani Green Energy.

He further said, “The globally well-recognised ESG ratings, that rank us ahead of some of the largest global utilities and RE players, are yet another proof of our commitment to a sustainable future and the highest governance standards at AGEL.”

Listed in 2018, AGEL has emerged as one of the largest global renewable portfolios with overall portfolio of 20.4 GW including operating, under-construction and awarded projects catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects.