Adani Green Energy snaps 5-session losing streak; surges 20%

Shares of Adani Green Energy (AGEL) rallied 20% in intraday trade on the Bombay Stock Exchange (BSE) on Friday, snapping five-session losing streak amid strong volume trade. There was spurt in volume trade as 4.5 lakh shares changed hands over the counter on the BSE, against the two-week average volume of 1.10 lakh stocks. Reversing some of early gains, the largecap stock settled 12.7% higher at ₹2,259.55, while the BSE benchmark Sensex ended 1,017 points, or 1.8%, higher at 57,427 levels.

Adani Green Energy share price opened flat at ₹2,004.05 and gained as much as 20% to hit an intraday high of ₹2,405.40 on the Bombay Stock Exchange (BSE). The stock witnessed trend reversal as it gained after five trading days of consecutive fall. The share price of Adani Group company had fallen 15.2% in the past five sessions, from ₹2,363.60 on September 22 to ₹2,004.05 on September 29.

Despite recent falls, the Gautam Adani-owned company has given decent returns in the past one year, with share price more than doubling to ₹2,405, from ₹1,146 on September 30, 2021. The stock has risen 66% in the calendar year 2022, while it has fallen 6.5% in the past one month. The energy heavyweight has zoomed 3,700% in three years and 7,500% since its listing in June 2018, post demerging from its parent entity, Adani Enterprises Ltd (AEL). The Adani Group stock hit a 52-week high of ₹3,048 on April 19, 2022, and a 52-week low of ₹ 1,106 on October 29, 2021.

Earlier this week, the company commissioned 600 MW world’s largest co-located wind-solar hybrid power plant at Jaisalmer, Rajasthan. The plant has power purchase agreements (PPA) with Solar Energy Corporation of India (SECI), a company of the ministry of new and renewable energy, at ₹2.69/kWh for 25 years. In May 2022, AGEL had operationalised India’s first hybrid power plant with a capacity of 390 MW at Jaisalmer. With the successful commissioning of this 600 MW plant, AGEL now has a total operational generation capacity of around 6.7 GW, including an operational hybrid power generation capacity of nearly 1 GW, the largest in the World. This puts AGEL’s total renewable portfolio of around 20.4 GW well on track to reach its vision of 45 GW capacity by 2030.

For the first quarter ended June 2022, the Ahmedabad-headquartered clean energy firm reported a 2.3% year-on-year (YoY) fall in consolidated profit at ₹214 crore, weighed down by lower other income and forex loss. However, cash profit rose by 48% YoY to ₹680 crore. The total income surged 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 increased 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 centralised monitoring through energy network operation center.