Adani Power Q2 Review: Long-Term Outlook Remains Intact Says ICICI Securities Maintaining 'Buy'

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ICICI Securities Report

Adani Power Ltd. has increased its under construction capacity by two times (25GW vs earlier 12GW). It has tied up power purchase agreement of ~11GW (including L1 in Assam of 2.4GW) at attractive tariffs.

Further, it is ahead of its peers as it has already placed BTG orders for entire under construction portfolio.

We expect a significant part of the remainder portfolio to be tied up under long-term PPA in next 12-18 months. During the quarter, company sold 24 billion units of power (+7% YoY).

The merchant realization was lower by 9% in the quarter compared to last year. It reported plant load factor of 63% (-410bps YoY).

As a result, it reported revenue of Rs 134 billion (+1% YoY), Ebitda at Rs 50 billion (-2% YoY) – in line with our estimates.

We maintain Buy with a revised target price of Rs 187 (to account for increased pipeline and better pricing environment).

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