These Adani stocks soared nearly 8 percent after securing a contract from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 6.6 GW (GigaWatt) of solar power.
Share Price Movement
On Monday, Adani Green Energy Ltd shares climbed 7.9 percent to an intra-day high of Rs.1,929.35 per share, up from Rs.1,787.85 apiece, before settling at Rs.1,918.15. Similarly, Adani Power Ltd shares surged 7.5 percent to Rs.681.3 per share, from Rs.633.55 apiece, and are now at Rs.675.
What happened
On 15th September, Adani Green and Adani Power were issued a Letter of Intent by Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the supply of 6,600 MW of hybrid solar and thermal power.
Adani Green Energy Limited (AGEL), India’s largest renewable energy company, will sign a long-term Power Purchase Agreement (PPA) with MSEDCL. The agreement, based on the Letter of Intent, covers the supply of 5 GW (5000 MW) solar power from the world’s largest renewable energy park at Khavda, Gujarat.
The PPA will set a flat tariff of Rs.2.70 per kWh for 25 years from the Commercial Operation Date. The solar projects, connected to the Inter-State Transmission System, will be developed in stages over three years after the PPAs are signed with MSEDCL.
Adani Power Limited (APL), India’s largest private thermal power producer, will sign a long-term Power Supply Agreement (PSA) with MSEDCL to provide 1,496 MW (net) of thermal power from a new 1,600 MW ultra-supercritical thermal power project to Maharashtra.
Management Commentary
“We are glad to collaborate with MSEDCL to meet the states’ rising energy demand through renewable sources and fulfill its renewable energy commitments,” said Sagar Adani, executive director, of Adani Green Energy. “Our goal is to accelerate India’s clean energy transition. This is a crucial step towards the country’s energy independence and building a sustainable future.”
Mr Anil Sardana, Managing Director, of Adani Power, said “As India advances in achieving its economic growth targets while maintaining a keen focus on sustainability. Adani Power is proud to partner with a leading industrialized state like Maharashtra by becoming one of its key suppliers of reliable and competitive power from its existing and upcoming capacities.”
Financial Performance
For the quarter ending June 2024, Adani Green Energy Ltd reported a net profit of Rs.629 crore, up 95 percent from the previous quarter. Revenue from operations rose 31.12 percent to Rs.2,835 crore. Adani Power reported a net profit of Rs.3,913 crore, down 55 percent, while revenue surged 36 percent to Rs.14,956 crore.
Company Profile
Adani Power Ltd, India’s largest private thermal power producer, has an installed capacity of about 15,250 MW from coal and solar projects across various states.
Adani Green Energy Ltd, part of the Adani Group, focuses on renewable energy with a significant portfolio in solar and wind projects.
Written by – Siddesh S Raskar
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