Adani Power Limited
8,267words
7turns
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0executives
Key numbers — 40 extracted
rs,
73.97%
60.94%
69.94%
74.96%
37.40%
100%
50.00%
65.89%
67.53%
50.05%
58.08%
Guidance — 4 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”
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 In progress Bids ongoing Mahan Ph-II 1,600 MW Raipur Ph-II 1,600 MW Raigarh Ph-II 1,600 MW 1,320 MW 1,600 MW Bids ongoing Mirzapur(1) 1,600 MW In progress 1,600 MW Mahan Ph-III 1,600 MW Bids ongoing Kawai Ph-II 1,600 MW In progress Bids ongoing Korba Ph-III 1,600 MW In progress Bids ongoing Organic Total 12,520 MW 100% 100% 50% 4,520 MW VIPL (under acquisition) 600 MW Commissioned Bids ongoing Total 13,120 MW 100% 100% 53% 4,520 MW 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 Clarifier | (1) Letter of A
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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