Adani Green Energy share falls 3% post Q1; here’s why

Shares of Adani Green Energy slipped over 3% in choppy trade on Wednesday as investors resorted to profit booking after the Adani Group company released its June quarter earnings. The share price of the renewable energy company has fallen after rising more than 9% in the last four sessions.

Following Q1, Adani Green Energy shares opened higher at ₹2,300, against the previous closing price of ₹2,295.15 on the BSE. Reversing opening gains, the stock fell as much as 3.15% to hit a low of ₹2,222.90, in sync with benchmark Sensex, which dropped 218 points to 57,918 levels.

The energy heavyweight has given stellar returns in the past one year, with share price surging from ₹891 on August 3, 2021, to ₹2,310 in intraday today, registering a growth of 159%. The stock has risen 67% in the calendar year 2022, while it has gained 20% in the past one month and 6.5% in a week. The Adani Group stock hit a 52-week high of ₹3,048 on April 19, 2022, and a 52-week low of ₹860.20 on August 11, 2021.

The Gautam Adani-owned company in a post market release on Tuesday reported a 2.3% year-on-year (YoY) fall in consolidated profit at ₹214 crore for the quarter ended June 2022, weighed down by lower other income and forex loss. However, cash Profit rose by 48% YoY to ₹680 crore.

The Ahmedabad-headquartered clean energy firm saw its total income surging by 58% to ₹1,701 crore during the quarter under review, from ₹1,079 crore in the same period last year. Revenue from power supply increases by 57% YoY to ₹1,328 crore, driven by capacity addition, improved solar and wind capacity utilisation factor (CUF) and high hybrid CUF.

The expenses of the company surged to ₹1,425 crore in Q1 FY23, compared to ₹898 crore in the preceding fiscal.

For the April-June quarter, the company’s EBITDA from power supply increased by 60% YoY to ₹1,265 crore with a consistent EBITDA margin of 92%. This was backed by high solar, wind, and hybrid capacity CUF and cost efficiencies brought in through real time centralized monitoring through energy network operation center.

“With deployment of the latest technologies and analytics driven O&M, AGEL’s Solar and Wind portfolio performance has continued to improve. We are further proud of our teams that have enabled commissioning of India’s first solar - wind hybrid capacity of 390 MW at Jaisalmer, Rajasthan with more such projects in pipeline. We will continue to deploy the latest technologies to enable higher and cost efficient RE power generation with flexible integration with the grid.” said Vneet S. Jaain, MD & CEO, Adani Green Energy Ltd.

During the quarter under review, the company received $500 million from Abu Dhabi based International Holding Company PJSC (IHC) as primary capital in AGEL. This helps deleverage the balance sheet, strengthen the credit rating profile thereby helping reduce the cost of capital and support future growth, the company says in its earnings report.