Adani Power Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Uma Menon - Sanford C. Bernstein (India) Private Limited - Analyst : Hi. Thank you for the opportunity. I just had a couple of questions. The first one being, if you could please provide an update on the completion of acquisition time line on Lanco Amarkantak and if there are any updates on other acquisitions plants such as KSK Mahanadi and the costal energen plant. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2024 / 12:00PM, ADAN.NS - Q1 2025 Adani Power Ltd Earnings Call

Question: Uma Menon - Sanford C. Bernstein (India) Private Limited - Analyst : Sure, sir. And the second question is around battery using and all. With the lowering costs that we're seeing on batteries and the low tariff that we saw slightly lower than the fourth tariff seen in on the tech tenders recently. Do you see this as a threat to the merchant thermal portfolio?

Question: Nikhil Abhyankar - ICICI Securities Limited - Analyst : Sir, I had a couple of questions. So can you just elaborate upon how are we looking on tying up for PPAs for organic expansion? And which states have come out with tenders and what will be the duration of your PPA?

Question: Nikhil Abhyankar - ICICI Securities Limited - Analyst : Understood. For the plants which are considering for acquisitions, can you speak on the -- how much of the capacity is tied up already? Is there any merchant capacity available?

Question: Nikhil Abhyankar - ICICI Securities Limited - Analyst : Understood, sir. And sir, almost 22% of the revenues have come from merchants. So how much was the merchant sale and in units of capacity here? And if you can also talk about the spreads. How much spread or cost spreads have we owned on it? And what was it compared to last year?

Question: Nikhil Abhyankar - ICICI Securities Limited - Analyst : INR 4.56. Okay. And what was it compared to last year?

Question: Nikhil Abhyankar - ICICI Securities Limited - Analyst : Understood, sir. And sir, mostly the sales will be a medium-term or short-term PPAs are more bilateral trade or bilateral market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2024 / 12:00PM, ADAN.NS - Q1 2025 Adani Power Ltd Earnings Call

Question: Puneet Gulati - HSBC - Analyst : My first question is on your thoughts on the merchant power. Would you want to keep any more capacity open for merchant? Or would you rather tied up with PPAs given the current demand situation?

Question: Puneet Gulati - HSBC - Analyst : Coming for the expansion, you would like to keep 20% merchant.

Question: Puneet Gulati - HSBC - Analyst : And availability of credit. Is there credit available for the merchant part of the capacity as well? Or would you have to fund it out of your internal accruals.

Question: Puneet Gulati - HSBC - Analyst : Understood. That's very helpful. And secondly, in your analysis, how are you protecting yourself against potential in future carbon taxes? Do the PPAs have a clause which allows you a pass through? Or is that a risk that you will be exposed to later on?

Question: Puneet Gulati - HSBC - Analyst : And can you also talk about the future acquisition opportunities apart from the CSP and Lanco? What other would you be evaluating or is available in the market?

Question: Puneet Gulati - HSBC - Analyst : And so without the names, any intent on the size because I would presume those would come in faster and greenfield will still take about five years to come from now. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2024 / 12:00PM, ADAN.NS - Q1 2025 Adani Power Ltd Earnings Call

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : I think merchant power offers flexibility and promise of a higher reward. But of course, there is a certain risk, especially in the leverage business, while the PPAs give us predictability, but probably will lock us down into relatively a potential of lower returns. How do we what is that philosophy and strategy to balance risk and reward between merchant and the PPAs?

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : Sorry, I missed that earlier part. My apologies. Secondly, likely given the way economy is growing, and given the way it is a synergistic growth across many, many sectors. Therefore, GDP growth is likely to be far more joining type and combining amongst many sectors. Plus given the first off, growth on manufacturing an industry. Energy demand growth, we are likely to overshoot all projections. So given 11%,12% kind of likely electricity demand and the growth in the coming period on a per annum basis. What kind of our growth, the picture would show? Will it be -- what kind of multiple do we see compared to overall energy demand growth in the system?

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : So volume terms probably will grow at the rate of 15% over 5, 6 years. I thought it was in my earlier discussions with you, my impression was the rate higher than that is what volume growth we are aiming at.

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : I'm saying in my earlier discussions with you, my impression has been that we are aiming at volume growth much higher than what Dilip Ji is just now mentioning because this will imply about 15% volume growth over the next 5, 6 years. But I thought we are looking at achieving a much better number than that.

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : Okay and maybe then I've been more optimistic than what has been suggested. Therefore, revenues are likely to be including at a rate faster since realizations will probably improve.

Question: Bharat Shah - ASK Investment Managers Limited. - Analyst : And by implication, profit growth would be even much higher because of the basic equation underlying that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2024 / 12:00PM, ADAN.NS - Q1 2025 Adani Power Ltd Earnings Call