About the Stock: Adani Power Limited specializes in generating electric power from coal-based thermal plants and engages in coal trading. Its main operations are based at the Mundra Thermal Power Plant in Gujarat, with subsidiaries located in Maharashtra, Rajasthan, Karnataka, and other regions. The company has a total generation capacity of around 15.25 GW, including multiple plants and a solar project in Gujarat. Adani Power distributes the electricity generated from these projects through long-term Power Purchase Agreements and merchant sales. Its subsidiaries include Adani Power Maharashtra Limited, Adani Power Rajasthan Limited, Udupi Power Corporation Limited, and Adani Power Resources Limited.
Business Model / Products & Services:
Adani Power operates in multiple segments, including power transmission, trading, and the Mumbai GTD Business.
The company’s main focus is on power transmission, with an extensive network spanning over 14,000 kilometers and a transformation capacity exceeding 23,000. This means the traditional concept of manufacturing goods for sale doesn’t apply to their business model.
Adani Power is recognized as a leader in the power transmission and trading industry.
Company Valuation
Sector
Power
NSE
ADANIPOWER
BSE
533096
Market Capitalization
Rs 285,587 Crore (As of June 21, 2024)
Book Value Per Share
Rs 92.26
Face Value
Rs 10
P/E ratio
14.5
52 week H/L
895.85 / 231.00
Dividend Yield (%)
—
Shareholding Pattern
Particulars
Jun-23
Sep-23
Dec-23
Mar-24
Foreign Promoters %
28.33
22.92
25.11
25.11
Indian Promoters %
46.64
46.64
46.64
46.64
DIIs %
0.04
0.76
1.18
1.41
FIIs %
11.95
17.51
15.86
15.91
Others %
13.04
12.17
11.21
10.93
Ratios (Consolidated)
Particulars
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
ROCE %
5.24
11.63
16.05
15.77
32.3
ROE %
–
–
30.87
44.16
57.05
ROA %
–
1.65
6.11
12.78
23.43
Interest Coverage Ratio
0.57
1.45
2.61
3.3
7.14
D/E
–
130.68
2.61
1.41
0.8
P/B
–
65.92
3.82
2.47
4.77
Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Share Capital
3,857
3,857
3,857
3,857
3,857
Reserves
-5,991
-3,359
14,847
26,019
39,288
Borrowings
63,814
65,026
48,796
42,252
34,457
Other Liabilities
13,358
13,023
14,482
13,694
14,347
Total Liabilities
75,037
78,546
81,981
85,821
91,948
Fixed Assets
55,846
52,851
53,274
50,746
63,016
Capital WIP
2,347
6,439
10,270
12,880
925
Investments (Long Term)
0
0
0
43
0
Other Assets
16,845
19,256
18,437
22,153
28,007
Total Assets
75,037
78,546
81,981
85,821
91,948
Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Sales
23,884
26,468
26,221
27,711
38,773
50,351
Other Income
2,477
1,374
1,928
3,975
4,267
9,930
Expenses
18,930
20,782
17,553
17,897
28,729
32,171
Operating Profit
7,431
7,059
10,597
13,789
14,312
28,111
OPM%
31
27
40
50
37
56
Interest
5,657
5,315
5,106
4,095
3,334
3,388
Depreciation
2,751
3,007
3,202
3,118
3,304
3,931
Profit Before Tax
-976
-2,289
2,289
6,577
7,675
20,792
Tax%
-1
0
45
25
-40
0
Net Profit
-984
-2,275
1,270
4,912
10,727
20,829
PATM%
-4
-9
5
18
28
41
Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
5,598
7,014
10,233
8,431
14,170
Cash from Investing Activity
-2,328
-2,188
572
1,544
3,485
Cash from Financing Activity
-2,377
-5,655
-10,338
-10,408
-16,864
Net Cash Flow
892
-828
467
-433
791
Q4 FY24 Result Update:
Revenue (Topline): Increased by 30.48% compared to the same quarter last year. This indicates significant growth in overall sales.
Profit: Decreased by 47.79% year-on-year. Despite increased revenue, the profit declined substantially, which suggests higher costs or other factors impacting profitability.
Revenue: Grew by 2.87% compared to the previous quarter. This shows a modest increase in sales performance from the immediate preceding quarter.
Profit: Decreased marginally by 0.03% quarter-on-quarter. The slight decrease suggests stable but not improving profitability over the short term.
Selling, General & Administrative Expenses (SG&A): Rose by 25.4% compared to the previous quarter. This increase in operational expenses could impact overall profitability if not offset by revenue growth.
Year-on-Year SG&A Increase: Increased by 27% compared to the same quarter last year. This points to ongoing investment in operational activities or expansion efforts.
Quarterly Increase: Up by 5.95% compared to the previous quarter. This indicates improved operational efficiency or cost management within the business.
Year-on-Year Increase: Surged by 253.95% compared to the same quarter last year. Such a significant rise suggests substantial improvements in profitability from operations year-over-year.
Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars
Dec 2022
Mar 2023
Jun 2023
Sept 2023
Dec 2023
Mar 2024
Sales
7,764
10,242
11,006
12,991
12,991
13,364
Other Income
526
553
7,103
1,945
364
518
Expenses
6,295
8,335
7,491
7,819
8,346
8,514
Operating Profit
1,996
2,461
10,618
7,116
5,009
5,368
OPM%
26
24
96
55
39
40
Interest
946
746
883
888
797
820
Depreciation
838
817
935
1,004
1,002
990
Profit Before Tax
212
898
8,800
5,224
3,210
3,558
Tax%
96
-484
0
-26
15
23
Net Profit
9
5,242
8,759
6,594
2,738
2,737
PATM%
0
51
80
51
21
20
Conclusion:
In summary, the fundamental analysis of Adani Power reveals a promising outlook. With a substantial and diverse power generation capacity of 16.85 GW, a modern and environmentally sustainable fleet, and a significant market presence in India’s private thermal generation sector, the company demonstrates strong potential for growth. Additionally, strategic acquisitions and expansions into various subsidiaries and projects underscore its commitment to future development and resilience in the power industry. Adani Power’s ability to adapt to evolving market conditions and its focus on reducing greenhouse gas emissions through Supercritical/Ultra-supercritical units position it as a pivotal player in India’s energy sector. These factors, combined with prudent financial management, present an attractive opportunity for investors aiming to capitalize on India’s expanding energy needs and environmental initiatives.
