Adani Green Energy Limited CONTENTS Corporate Overview Statutory Reports 2 Our Identity 32 Directors’ Report and Annexure 6 Key Projects 7 Financial Performance Financial Statements 8 Chairman’s Perspective 50 Standalone 10 CEO’s Message 94 Consolidated 12 Leading with Strong Track Record 14 Growing with Robust Operations 146 Notice 16 Sustaining with Steady Offtake 18 Moving towards Better Technology 20 Growing with Long-term Opportunity 22 Growing with our People Find more online 24 Growing with Inclusion To learn more about Adani Green 30 Corporate Information Energy Limited, to register to receive our news, or to explore opportunities to join us, please visit www.adanirenewables.com Growth in FY 2017-18 EBIDTA (C in Crores) On Consolidated basis 704 Revenue (C in Crores) 45.70% 868 EBIDTA margin (%) 73.05% 81.15 (post corporate overhead expenses) Assets (C in Crores) 12,063 93.87 (before corporate overhead expenses) 95.83% Growth with Goodness Scale, to us, is not about the Through courage, and a businesses we are in. Scale is commitment to give back to the about the real influence and society by creating sustainable change we can spur. business value creation, we enable growth and progress that ends up It’s about the lives we can touch, benefitting millions. the communities we can nourish, the businesses we can propel, We have consciously extended and the future we can inspire. our scale beyond our businesses, Because, scale leads to growth; to help the country overcome and with consistent growth economic challenges; to ensure comes incredible goodness. With people live a good quality of life, the size of our operations in uninterrupted. We believe scale multiple nation-critical sectors, can lead to goodness, and this we have been fortunate enough what drives us to growth. to reach out more and spread this goodness, regardless of the geography. Adani Green Energy Limited | Annual Report 2017-18 OUR IDENTITY A Cleaner and Greener Future AGEL is one of the largest renewable government entities and government- energy companies in India. AGEL has backed corporations. been Adani Group’s pioneering effort to help India’s transition to renewable AGEL has a portfolio of 36 operational power generation. We develop, build, own, and 3 under-construction projects, operate and maintain utility scale grid- contributing substantially to India’s connected solar and wind projects. The renewable energy journey. electricity is supplied to central and state Group overview Group vision AGEL is an integral part of Adani Group, which has To be a world class leader in businesses that interests across resources (coal, mining and trading), enrich lives and contribute to nations in building logistics (ports, shipping and rail), energy (renewable infrastructure through sustainable value creation. and thermal power generation and transmission), solar manufacturing, agricultural commodities and ancillary industries. Our businesses Our scale and scope Solar energy Wind energy Operational capacity (MW) Operational capacity (MW) ~ US$2 bn* 1,898 60 Worth of total assets Under development (MW) Under development (MW) ~25 years Average life of power purchase 250 937 agreements * Exchange rate 1 US$ = 67 INR 2 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Our values Courage Trust Commitment > We shall embrace new ideas and > We shall believe in our employees > We shall stand by our promises and businesses and other stakeholders adhere to high standards of business > Take calculated risks in pursuing new > Show faith in the capability of our > Be Reliable – ‘Do what you say’ and and big business opportunities employees ‘Say what you will do’ > Dare to achieve > Empower our employees to go > Consistently deliver on business beyond the call of duty to deliver goals and targets > Own up to our decisions results > Consistently demonstrate high > Encourage employees to turn standards of professionalism disappointments into learning opportunities > Listen to and include the perspectives of our vendors, investors and other stakeholders Culture Passion Results Integration Performing with enthusiasm and energy Consistently achieving goals Working across functions and businesses to create synergies Dedication Entrepreneurship Working with commitment in the Seizing new opportunities with pursuit of our aims initiative and ownership 1,958 MW 1,187 MW 11 Operational capacity of Capacity of green energy State presence green energy under development 100% 36 Sovereign off-takers reduce Operational projects uncertainty around cash flows and collection of receivables 3 Adani Green Energy Limited | Annual Report 2017-18 OUR IDENTITY Our Pan-India Operations Punjab 100 MW 50 MW Uttar Pradesh Rajasthan 50 MW 20 MW Madhya Pradesh 48 MW 12 MW Gujarat Chhattisgarh 937 MW 100 MW Telangana 100 MW Andhra Pradesh 50 MW Maharashtra 20 MW Tamil Nadu 648 MW Karnataka 810 MW Solar Wind Operational Under implementation Diversification across states Power Purchase Agreement and off-takers % Solar (MW) Wind (MW) Our portfolio is diversified geographically with presence in 11 states of India. This has also State Discoms 45 1,268 147 enabled diversification of off-takers and spreading Solar Energy Corporation our revenue realisations across weather patterns, 43 510 850 of India (SECI) climates and local demand schedules. National Thermal Power 12 370 - Corporation (NTPC) 4 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Our Advantages Largest Integrated Growth We are the largest utility- We are part of a vertically We have a predictable and scale solar power player in integrated energy and high-quality revenue stream India with a strong track infrastructure conglomerate record of capacity addition Reach Diversified Excellence We are a pan-India renewable We have a well-diversified Our strong operational energy player with healthy portfolio with 60% of the expertise and project mix across wind and solar portfolio contracted with execution capabilities investment-grade central utilities Operations Quality Execution Our in-house O&M expertise We have best-in-class We boast of strong delivers committed plant suppliers ensuring world-class sponsor and professional performance at industry leading high-quality installations management with robust benchmarks execution track-record 5 Adani Green Energy Limited | Annual Report 2017-18 KEY PROJECTS Our Marquee Projects Solar PV plant at Bathinda Largest solar plant at Kamuthi MW MW India’s100 largest HSAT India’s648 largest single power plant location solar plant 641 F 45.5 billion 30,000 acres of land secured in a initial investment tonnes of structure manner that provides land owners consistent income for 30 years Tier-1 2,500 acres 6,000 km solar PV modules of area of cables comprised of polycrystalline silicon cells Horizontal Single 2.5 million 576 Axis Tracker solar modules inverters secured from NEXTracker, a global leader in tracker manufacturing 380,000 8 months foundations project completion time 6 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS FINANCIAL PERFORMANCE Key Performance Highlights Balance sheet Net plant, property and equipment (C in Crores) 7,983 7,983 4,340 2,774 FY16 FY17 FY18 Profit and loss Total Income EBIDTA EBIDTA Margin* (C in Crores) (C in Crores) (%) 902 704 81.15 902 704 96.38 582 81.15 73.05 483 20 34 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 *Post corporate overhead expenses 7 Adani Green Energy Limited | Annual Report 2017-18 CHAIRMAN’S PERSPECTIVE Driving Green Growth Dear Shareholders, It gives me immense pleasure to share with you that your Company has made formidable progress over the last fiscal. This growth has been driven by India’s economic success and the rising power demand in the country. India continues to make inspiring progress with policy reforms and initiatives despite multiple challenges. It promises unprecedented opportunities for global and domestic businesses owing to a stable macroeconomic environment and consistent focus on inclusive growth. The country’s GDP is growing steadily and is expected to more than double in the next decade. Gautam Adani Chairman, Adani Group “The power sector has reflected the economy’s upsurge, with overall power demand increasing 6.1% YoY in FY18 from a meagre 2.6% growth in FY17.” 8 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS “In FY18, we reported a revenue growth of 54.98% YoY. The total revenue for the fiscal stood at F 902 Crores.” The power sector has reflected the to contribute meaningfully to the India the workforce. We are committed to economy’s upsurge, with overall power growth story. ensuring a safe working environment demand increasing 6.1% YoY in FY18 that nurtures our employees’ all-round from a meagre 2.6% growth in FY17. The As one of the largest renewable growth. growing demand is also being matched energy generation companies in India, by the Government’s initiatives to we are backed by long-term offtake As part of our commitment to society, ensure electricity reaches every house agreements. This helps us mitigate the Adani Foundation continues to in India. The Centre’s focus on achieving risks and create sustained value for our undertake measures that benefit ‘Power for all’ has accelerated capacity stakeholders. We are also constantly our communities. We have initiated addition in the country. Interestingly, evaluating new opportunities emerging programmes in the areas of education, the renewable energy sector continued in the field of renewable generation to vocational training, health and hygiene, to drive this capacity expansion with grow the business further. and the overall wellbeing of our society. 11.8 GW added in FY18. FY18 was marked by our efforts to In the coming years, we will ensure We believe these are exciting times transform through new technologies that our prudent business decisions for the power industry and particularly and digitisation. We will further and long-term approach to generating for renewable energy generation strengthen our commitment to clean renewable energy helps move forward companies. energies and to the protection of the the Government’s ‘Electricity for All’ environment by increasing production programme.