Business
The company builds, owns, and operates renewable energy projects in solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) categories. FDRE offers firm power supply at higher capacity utilisation factor (CUF) compared with solar and wind projects. It generates revenue through the sale of electricity to Centre and state-backed entities. It has operational capacity of 1,340 mega watts (MW) and under construction capacity of 3,250 MW. It also has 1,730 MW of awarded projects. This totals to 6,320 MW and over half of it or 54% comprises solar projects. Nearly half of the company’s installed capacity is situated in Rajasthan, 13.8% in Madhya Pradesh, 12.7% in Gujarat, 10.5% in Andhra Pradesh, and 8.9% in Karnataka.
The company has divested projects with a cumulative capacity of 1,379 MW and used proceeds to grow business. Connectivity to the electric grid is a major step during installation of power projects. Acme has secured 647 MW of connectivity and has applied for connectivity of 3,330 MW for future bids.
Financials
Revenue was ₹1,319.2 crore in FY24 vs ₹1,294.9 crore in the previous year and ₹1,487.9 crore in FY22. Net profit was ₹697.8 crore in FY24 compared with a net loss of ₹3.2 crore in FY23. The fluctuations can be attributed to capacity divestment. Operating margin before depreciation and amortisation was between 82% and 91% in the 3 years to FY24.
Valuation
It demands a P/E multiple of 24 based on FY24 earnings while its enterprise value works out to be nearly 23 times Ebitda. Adani Green Energy, a larger peer, trades at FY25 expected P/E of 113 and EV/Ebitda of over 34.