Adani Power Limited
8,681words
7turns
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0executives
Key numbers — 40 extracted
rs,
73.97%
100%
50.00%
60.94%
74.96%
69.94%
37.40%
65.89%
67.53%
64.71%
30.42%
Guidance — 6 items
High visibility of cash flows
opening
“• • • Ready availability of land, water, project power, and other key enablers Shared infrastructure with existing capacities Reduced execution timeline • • Linkages earmarked by DISCOM for each PPA bid, providing clarity and uniformity to developers Additional Fuel Supply Agreement mechanism to address shortfall in FSA coal • • 80%+ under long term PPAs with two-part, availability-based tariff provides EBITDA predictability without dispatch risk.”
Improved Credit Profile
opening
“• • Adani Infra: In-house project management through multi-disciplinary teams Package Contract model for finer control on execution and better back-to-back assurances • • Pass through of fuel cost with adequate Change-in-law protection Alternate fuel supply cost recovery • • Low leverage and high liquidity provide ample growth headroom AA rated by four leading domestic rating agencies”
Project supply chain assurance
opening
“, Cl< ~ Crisil acomparryol S&PGlobal IC RA AN AFF ILIATE OF MOODY'S ' - - - A/Positive AA/Stable A/Stable AA/Stable - AA/Stable 8 notches upgrade in last 6 years with increased coverage from one rating agency to four rating agencies Net Debt to Continuing EBITDA (x) 52,987 50,626 45,822 39,434 7.4 6,852 7,989 8,540 5.7 4.6 26,545 18,789 31,023 21,575 1.4 FY24 1.4 FY25 55000 45000 35000 25000 15000 5000 -5000 FY19 FY20 FY21 FY22 FY23 Net Debt (Rs.”
Key Rating highlights
opening
“One time regulatory-prior period income included in above : FY25 ₹ 2,452 Crs, FY24 ₹ 9,322 Crs EBITDA: Reported EBITDA Home outline Hamburger Menu Icon with solid fill 35 5 ESG Practice Adani Power Limited (“APL”) STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL APL: ESG Highlights adani Power Material Topic Targets Key ESG Initiatives/Achievements Climate Change Adaptation and Mitigation ·•· ·····~ ···-· .•••• I ■---· -.”
Key Rating highlights
opening
“Consolidated PLF 71% in FY25 vs 65% in FY24.”
Key Rating highlights
opening
“Continuing Revenue growth of 11% in FY25 YoY due to greater volumes on account of improved power demand and capacity addition, partially offset by lower tariff realisation.”
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Risks & concerns — 4 flagged
• • • Ready availability of land, water, project power, and other key enablers Shared infrastructure with existing capacities Reduced execution timeline • • Linkages earmarked by DISCOM for each PPA bid, providing clarity and uniformity to developers Additional Fuel Supply Agreement mechanism to address shortfall in FSA coal • • 80%+ under long term PPAs with two-part, availability-based tariff provides EBITDA predictability without dispatch risk.
— High visibility of cash flows
Fuel price risk mitigation through escalation and pass-through mechanisms enhances EBITDA stability
— High visibility of cash flows
Healthy business risk profile with high level of long-term PPAs and FSAs.
— Key Rating highlights
Healthy financial risk profile and debt protection metrics.
— Key Rating highlights
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Opening remarks
High visibility of cash flows
• • • Ready availability of land, water, project power, and other key enablers Shared infrastructure with existing capacities Reduced execution timeline • • Linkages earmarked by DISCOM for each PPA bid, providing clarity and uniformity to developers Additional Fuel Supply Agreement mechanism to address shortfall in FSA coal • • 80%+ under long term PPAs with two-part, availability-based tariff provides EBITDA predictability without dispatch risk. Fuel price risk mitigation through escalation and pass-through mechanisms enhances EBITDA stability
Improved Credit Profile
• • Adani Infra: In-house project management through multi-disciplinary teams Package Contract model for finer control on execution and better back-to-back assurances • • Pass through of fuel cost with adequate Change-in-law protection Alternate fuel supply cost recovery • • Low leverage and high liquidity provide ample growth headroom AA rated by four leading domestic rating agencies
Self-funded development
• • Advance booking of 11.2 GW Boiler, Turbine, and Generator (BTG) equipment to ensure timely deliveries Extensive vendor development to build up ecosystem for other packages • • • APL is developing four coal mines with 14 MMTPA production capacity Enhanced fuel security for untied capacities, no end-use restrictions Logistics assurance through Adani Logistics • • • Sufficient cash flow generating ability to meet entire capex outlay Access to debt capital market for funding growth No risk of project delay on account of financial closure requirements MU: Million Units | BU: Billion Units | MMT: Million Tonnes | MMTPA: Million Metric Tonnes Per Annum | EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation | MW: Mega Watts | GW: Giga Watts | PPA: Power Purchase Agreement | O&M: Operations & Maintenance | kWh: kilo Watt hours | DISCOM: Distribution Company | FSA: Fuel Supply Agreement Home outline Hamburger Menu Icon with solid fill 28 APL: Project Management & Assurance
Project supply chain assurance
• Assured availability of most critical parts of the power projects, through advance ordering of 11.2 GW of BTG sets Project MW Land Equipment Ordering Environ- mental Clearance PPA Korba Ph-II 1,320 MW Mahan Ph-II 1,600 MW Raipur Ph-II 1,600 MW Raigarh Ph-II 1,600 MW Mirzapur 1,600 MW Mahan Ph-III 1,600 MW Kawai Ph-II 1,600 MW Korba Ph-III 1,600 MW ► ► ► ► ► ► ► ► ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ In progress Bids ongoing ✓ ✓ ✓ 1,320 MW 1,600 MW Bids ongoing In progress Bid submitted ✓ Bids ongoing In progress Bids ongoing In progress Bids ongoing Organic Total 12,520 MW VIPL (under acquisition) 600 MW 100% ► ► ✓ 100% 50% 2,920 MW Commissioned ✓ Bids ongoing m: million | Cr: Crores | k: Thousand | MMT: Million Tonnes | EBITDA: Earning before Interest, Tax, Depreciation & Amortization | MW: Mega Watts | GW: Giga Watts | PPA: Power Purchase Agreement | O&M: Operations & Maintenance | BTG: Boilers, Turbines, and Generators | ESP: Electrostatic Precipitator | HRSCC: High-Rate Solid Contact
Key Rating highlights
• • • • Significant cash inflow of long due regulatory receivables due to favorable resolution of regulatory issues Resulting into strengthening of balance- sheet and improved credit profile 80%+ of 17.55 GW capacity is tied up under long term PPA 60% of fuel capacity (91% of domestic capacity) is tied up under long term FSA ₹ 4,715 Crore ₹ 21,575 Crore FY19 Continuing EBITDA Mar ‘25 Continuing EBITDA ₹ 45,957 Crore ₹ 31,023 Crore FY19 Net Debt Mar ‘25 Net Debt 9.7 times 1.44 times FY19 Net Debt / Continuing EBITDA Mar’25 Net Debt / Continuing EBITDA m: million | Cr: Crores | k: Thousand | MMT: Million Tonnes | MMTPA: Million Metric Tonnes Per Annum | EBITDA: Earning before Interest, Tax, Depreciation & Amortization | MW: Mega Watts | GW: Giga Watts | PPA: Power Purchase Agreement | FSA: Fuel Supply Agreement | O&M: Operations & Maintenance | kWh: kilo Watt hours | TTM: Trailing Twelve Months Home outline Hamburger Menu Icon with solid fill 33 APL: Consistent improvement in EBITDA deli
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