Adani Green Q4 profit surges over 4-fold; stock hits upper circuit

Shares of Adani Green Energy were locked in upper circuit in opening trade on Tuesday after the renewable energy arm of Adani Group reported robust earnings for the fourth quarter ended March 31, 2023. The strong growth in revenues, EBITDA, and cash profit was primarily driven by capacity addition of 2,676 MW, the company said in its earnings report released overnight.

Cheering Q4 results, Adani Green Energy shares hit their 5% upper circuit limit at ₹998.10 apiece against the previous closing price of ₹950.60 on the BSE. With a market capitalisation of 1.58 lakh crore, the energy heavyweight trades 127% higher than its 52-week low of ₹439.35 touched on February 28, 2023. The stock is down 66% against its 52-week low of ₹2,998 hit on April 29, 2022. The counter has tumbled 65% in the last one year, while it slumped 47% in the calendar year 2023. In the past six months, the stock has lost 53%, whereas it rebounded over 19% in a month and 10% in a week.

For the January-March quarter of 2023 (Q4FY23), Adani Green posted a 319% rise in its consolidated net profit at ₹507 crore compared with ₹121 crore in the year-ago period, driven by higher revenues. The total income jumped 88% to ₹2,988 crore against ₹1,587 crore in Q4FY22.

For the full financial year 2023, the Adani Group company’s net profit almost doubled to ₹973 crore from ₹489 crore in the previous fiscal, while total income climbed 55.6% YoY to ₹8,633 crore.

Revenue from power supply surged 89% for the March quarter at ₹2,130 crore, while it jumped 54% to ₹5,825 crore for the fiscal 2023.

“Our business model has demonstrated remarkable resilience as evidenced by our strong financial performance,” said Gautam Adani, Chairman, Adani Group. “We are leaders in the green energy space and have consistently set new industry standards in efficiency, performance and capacity development. We are expediting the transition to sustainable energy and playing a pivotal role in fulfilling India’s obligations to a greener future.”

The sale of energy increased 58% YoY to 14,880 million units in FY23, “primarily backed by strong capacity addition, analytics driven O&M enabling high plant availability and deployment of latest renewable technologies”.

“AGEL has added a massive 2,676 MW renewable capacity to its operational fleet in FY23, which includes 2,140 MW solar-wind hybrid plants in Rajasthan, 325 MW wind power plant in Madhya Pradesh and 212 MW solar power plants in Rajasthan. AGEL has signed PPAs for 450 MW wind projects and 650 MW solar projects with SECI in FY23 further strengthening the firm project pipeline,” the company said in the exchange filing.

As per the company, 97% of its rated credit facilities are rated on an ‘A’ to ‘AAA’ equivalent credit rating scale in India. “AGEL has continued to maintain a strong counterparty profile with 86% sovereign/ sovereign equivalent rated counterparties,” it said.

Besides, the board of the company also announced key management changes within the organisation. The company has appointed Amit Singh as its new Chief Executive Officer (CEO) with effect from May 11. While Sagar R Adani has been reappointed as Executive Director for a period of five years, Vneet S. Jaain has been changed from Managing Director and CEO to Managing Director effective from May 11, 2023.