Q3 FY2025

"Adani Power Limited Q3 FY25 Results Earnings Call"

January 30, 2025

MANAGEMENT: MR. S. B. KHYALIA - CHIEF EXECUTIVE OFFICER, ADANI POWER LIMITED MR. DILIP JHA - CHIEF FINANCIAL OFFICER, ADANI POWER LIMITED MR. NISHIT DAVE - AVP (INVESTOR RELATIONS), ADANI POWER LIMITED

MODERATOR: MR. PRANAV FURIA - ANTIQUE STOCKBROKING

Page 1 of 23

Adani Power Limited

January 30, 2025

Moderator: Ladies and gentlemen, good day, and welcome to the Post-Results Q3 FY '25 Earnings Conference Call of Adani Power Limited.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then 0 on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Pranav Furia from Antique Stockbroking. Thank you, and over to you, sir.

Pranav Furia: Thank you. Good afternoon, everyone. We are pleased to welcome you all to the Q3 FY '25 Earnings Call of Adani Power Limited.

Today, we have with us the Management Team represented by Mr. S B Khyalia - CEO; Mr. Dilip Jha - CFO; and Mr. Nishit Dave - Head, Investor Relations. We will start with the brief opening remarks, which will be followed by Q&A. Over to you, sir.

Shersingh Khyalia: Good afternoon, everyone. Thank you for joining us today to discuss our Financial Results for the 3rd Quarter of Financial Year '25.

I have with me, our CFO - Dilip Jha; and Investor Relations Head - Nishit Dave. I am sure you must have downloaded and gone through our results announcement and presentation.

Adani Power has continued its strong operational and financial performance in Quarter 3, with higher operating capacity after the recent acquisition of Moxie Power that was erstwhile Coastal Energen, Korba Power, and Dahanu power plant.

As you all know, India's power demand has been growing strongly, barring some impact of seasonality and weather in recent months.

Page 2 of 23

Adani Power Limited

January 30, 2025

Our fleet is well positioned to address this demand, both under PPAs and in the merchant market.

As a result of this, we have continued with a strong PLF performance in Quarter 3, and the 9-month period till December 2024. While our power supply under PPAs continue to enjoy a good merit order position, we have dispatched higher volumes in the market, both short term as well as merchant.

On a 9-month basis, APL achieved a PLF of 69% and dispatch of

69.5 billion units till December '24, which is a growth of 22% over the corresponding period of FY '24. Our revenues also registered a growth of 13% on a recurring basis for this period to reach INR 41,951 crores. The revenue under PPA incorporates an element of lower import fuel prices.

In the case of merchant sales, while tariffs have come down in the current year, we were able to increase our volumes by more than 50% by leveraging our competitive advantages and earned substantial contribution.

As a result, we have achieved a growth of 22% in recurring EBITDA for the 9-month period, ended December '24, to INR 16,478 crores. We have been able to resolve all our major regulatory matters successfully in the previous two fiscal years, due to which our recognition of prior period revenues has gone down. We recognized INR 2,420 crores of one-time revenue only in the 9- month period December '24, as compared to INR 9,227 crores in the corresponding period of 2024.

Our profit after tax for the 9-month period is at a strong level of INR 10,150 crores, and 2,940 crores for Quarter 3, 2025. This robust profitability and healthy liquidity are helping us to fuel our expansion plans to achieve more than 30 gigawatts of operating capacity by 2030.

Page 3 of 23

Adani Power Limited

January 30, 2025

We have already given out the main plant equipment orders for 11.2-gigawatt capacity and secured the most critical part of the project supply chain. We are now giving out orders for civil work erection and commissioning and balance of plant in a phased manner for the upcoming projects.

Our ongoing expansion project at Mahan for 1,600 megawatt is well underway and on schedule with more than 40% physically progress. We have also started work at the Raipur site for its 1,600- megawatt expansion project, which will supply power to Maharashtra Discom for which we have signed a PPA for net capacity of 1,496 megawatts.

In addition to this, we are also in discussion with OEMs and other contractors for reviving and completing the 1,320-megawatt expansion project at Korba, which was earlier known as Lanco Amarkantak.

More states are expected to come up with bids for long-term PPAs for sourcing baseload power. We are keen to participate in these bids and are confident of leveraging our key competitive strength successfully.

We have selected our plant locations and various acquisitions very strategically. Their locational advantage and availability of land will enhance our competitive edge for the upcoming PPAs. Apart from this, we are also focusing on bolstering our fuel security by acquiring commercial mines in coal blocks that are in the vicinity of our power plants.

We have recently acquired Stratatech Mineral Resources from Adani Enterprises Limited and amalgamated it into Mahan Energen. The acquired entity is the licensee for the Dhirauli mine, which is just next door to the Mahan power plant at Singrauli. It will supply 5 million tonne of coal after 2 years, which will be utilized by the untied capacity of the Mahan power plant.

Page 4 of 23

Adani Power Limited

January 30, 2025

While we focus sharply on business growth and performance, we also pay equal attention to our responsibilities as a good corporate citizen. We have made consistent efforts to fulfil our ESG commitments and improve our performance on various parameters. I am happy to note that our all-round efforts have earned recognition in the form of improved ESG ratings, awarded by various Indian and international ESG rating agencies.

Recently, we have improved our score from 48/100 to 68 /100 in Corporate Sustainability Assessment by S&P Global. This puts us among the top 15% in the peer set, which has an average rating of only 42 /100. We have received other similar high ratings and continue to improve our performance year-on-year.

Going forward, we are fully committed to enhancing the value created for our all stakeholders through a relentless focus on quality and efficiency in all aspects of our operations.

Thank you for your continued support. I look forward to your questions. I'll now hand the call over to our CFO. Over to you, Mr. Dilip.

Dilip Jha:Thank you, Khyalia sir, and good afternoon, everyone. As Khyalia Ji has put it, our performance for 9 months and Quarter 3 of Financial Year '25 continues to reflect our strategic initiatives and operational excellence.

On the operational side, APL's generating capacity during Quarter 3 FY '25 was 17,550 megawatts, as compared to 15,250 megawatts in Quarter 3 FY '24, and this is due to the acquisitions. It achieved a consolidated PLF of 63.9% in the recently concluded quarter, in comparison to 68.6% in the corresponding period of last year. The main reason for the lower PLF was demand variability due to weather conditions apart from a strong base effect.

Page 5 of 23

Adani Power Limited

January 30, 2025

However, we have maintained excellent availability of our plants on the strength of our O&M excellence and fuel management expertise. Power sales volume grew by 8% for Quarter 3 FY '25 as compared to FY '24, supported by higher operating capacity and a strong growth in merchant volumes.

In the 3rd Quarter of FY '25, our continuing revenue stood at INR 13,434 crores, showing a stable performance compared to previous year. Our continuing EBITDA for the quarter was INR 4,786 crores, reflecting our ability to maintain profitability despite market challenges, like seasonability and variability of demand.

The continuing profit before tax for the quarter was INR 2,659 crores, while onetime prior period income was INR 1,400 crores in Quarter 3, FY '25 as compared to a derecognition of comparatively very small amount of INR 50 crores in the same period of last year. On the base of this strong operating profitability and recovery of past dues, we posted a strong profit after tax of INR 2,940 crores for the quarter.

For the first 9 months of FY '25 , our continuing revenue grew by 13% year-on-year to INR 41,951 crores. This growth was primarily driven by higher sales volume, supported by improved power demand as compared to the previous year, and larger operating capacity. Our continuing EBITDA for the same period increased by 22% year-on-year basis to INR 16,478 crores. This robust growth was mainly due to higher recurring revenues and lower fuel prices.

Our focus on cost control and operational efficiency has enabled us to achieve this significant improvement in EBITDA. Furthermore, our continuing profit before tax for the first 9 months of FY '25 also grew by an impressive 33% on year-on-year basis to INR 10,679 crores. This increase was driven by the improved EBITDA, and effective management of finance costs also. One-time prior period recognition was comparatively lower,

Page 6 of 23

Adani Power Limited

January 30, 2025

that is at INR 2,420 crores in the 9 months ended December '24, as compared to INR 9,227 crores for the corresponding period of the previous year. And this is primarily due to our having received a majority of our regulatory claims in the previous couple of years.

As you may be able to appreciate, the recurring financial performance we are reporting regularly now is ample demonstration of the core earning potential of our portfolio. We are also adding value-accretive capacity by organic means. Our recent acquisitions have been made at attractive valuations. They present us with an opportunity to turn them around quickly utilizing our sector-leading capabilities. These results underscore our commitment to delivering consistent and sustainable growth.

We remain focused on enhancing our operational capability, optimizing our cost structure and capitalizing on the opportunities in the Indian power sector.

Thank you for your continued support and confidence in Adani Power. We look forward to discussing our performance in more detail and addressing any questions you may have, please. Over to moderator.

Moderator: Thank you, everyone, sir. We will now begin the question-and- answer session. Anyone who wishes to ask a question may press "*"and 1 on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press "*" and 2. Participants are requested to use handsets while asking a question.

Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Mohit Kumar from ICICI Securities.

Mohit Kumar: Hi, good afternoon, sir, and thanks for the opportunity. My first question is, sir, can you please help us with the timelines for 1.4

Page 7 of 23

Adani Power Limited

January 30, 2025

gigawatt PPA, which was signed at MSEDCL, when it is going to kick in?

Shersingh Khyalia: As per the PPA, there is a time period of 42 months for the commissioning of the unit. And before that, there is a period of 18 months available for financial closure. So, let us say, total 60 months are available. But we are planning to commission this within a period of 4 years. So, as per PPA, 5 years is available, but our internal plan is to commission within a period of 4 years.

Mohit Kumar: Understood, sir. And on the Lanco, I think we acquired in this quarter. Is that right understanding? And secondly, when do you expect this 1.3 gigawatt to be operational in your opinion?

Shersingh Khyalia: Commissioning of the balance work will be around 30 months. It will take around 30 months from today.

Mohit Kumar: Understood, sir. And have you acquired the Lanco completely in this quarter? Is that right understanding?

Dilip Jha:Yes. So, we have acquired Lanco on 6 September, so partially 1 month considered in the quarter 2 results, and then for 3 months in Quarter 3.

Nishit Dave: Yes. And we have acquired 100% of that, in case that is what you are asking.

Mohit Kumar: Understood. And sir, can you please explain the one-time booking of this INR 14 billion and the nature of it? In the notes to accounts, we see only 5C, which talks about INR 871.82 crores of recognition towards tariff compensation claims.

Dilip Jha:Yes. So, this is pertaining to one-time income we booked related to coal shortfall for Haryana Discom. This is more than INR 411 crores. In Tiroda, it is mainly DSM recovery, around INR 420 crores,

Page 8 of 23

Adani Power Limited

January 30, 2025

and then LPS charges in the rest of the DISCOMs. So, in total, you can say Haryana DISCOM, coal shortfall, INR 411 crore, Tiroda DSM INR 422 crore, and LPS for rest of the DISCOMs, mainly pertaining to Bangladesh.

Mohit Kumar: And this is note #7, sir, which talks about the company has claimed compensation of alternate costs for 1.2 gigawatt of supplementary PPA with Haryana DISCOMs. It speaks about INR 782 crores of recognized revenues. Is this included as INR 1500 crores?

Dilip Jha:Yes, it is included. Haryana DISCOMs have accepted 50% of our claim.

Mohit Kumar: This is only 50%. The 50% claim is still there?

Dilip Jha:Yes. This is 50%. We have raised a bill up to December, INR 1,908 crores. Out of that, we have received INR 966 crores. This is almost 50% of that. So, with minor adjustment related to taxes and duties, net amount of INR 782 crores was recognized during the quarter. We have received full payment against INR 782 crores from Haryana Discom.

Mohit Kumar: Understood sir. Thank you and best of luck. Thank you. That's it.

Moderator: We have our next question from the line of Puneet Gulati from HSBC Mutual Funds. Please go ahead.

Puneet Gulati: My question is, again, just on this Haryana recognition of INR 782 crores, sir, INR 916 crores was not accounted as income earlier in our P&L at all. Is that understanding, correct?

Dilip Jha:Yes, this understanding is correct. We first ensure the consistency of this income. After receiving some amount in quarter 1, we waited to establish consistency in quarter 2 also, which we received. Finally, we saw that we are receiving 50% payment consistently. That is why in this quarter, we recognized 50%, and will continue to recognize it.

Page 9 of 23