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Informist, Monday, Oct. 28, 2024

 

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--Adani Power Jul-Sept consol net profit INR 33.32 bln vs INR 65.94 bln 
--Adani Power Jul-Sept consol revenue IN 133.39 bln vs INR 129.91 bln 
--Adani Power board OKs INR 50 bln fund raise via debentures 
--Adani Power Apr-Sept consol net profit INR 72.45 bln vs INR 153.54 bln 
--Adani Power Apr-Sept consol revenue INR 282.95 bln vs INR 239.96 bln 
--Adani Power consol power sales 21.9 bln units, up 21% on year 
--Adani Power plant load factor 66.9% vs 58.3% year ago 
--Adani Power: Demand for power was flat in Jul-Sept 
--Adani Power: Demand for power was flat in Jul-Sept on prolonged rains 
--Adani Power: Operating generation capacity 17,500 MW as on Sept 30 
--Adani Power:Jul-Sept prior period sale dn at INR 5.98 bln vs INR 27.81 bln 

 

By Steffy Maria Paul

 

MUMBAI – Owing to a substantial fall in other income and a surge in expenses, Adani Power Ltd.'s consolidated net profit for the September quarter fell by almost 50% to INR 33.32 billion from INR 65.94 billion a year ago. The company's consolidated revenue for the quarter was INR 133.39 billion, up 2.7% on year from INR 129.91 billion. This is the lowest on-year growth in revenues for Adani Power in the last five quarters. Sequentially, Adani Power's consolidated net profit fell 14.9%, while its consolidated revenue was down 10.8%. 

 

Adani Power's other income for the quarter was INR 7.24 billion, down 62.8% on year from INR 19.45 billion. The company's fuel cost for the quarter was INR 70.32 billion, up 4% on year from INR 67.62 billion. The company's cost for the purchase of power for resale or stock-in-trade for the quarter was INR 814.9 million, up 181% from INR 290.1 million. The power major's transmission charge for the quarter was INR 1.25 billion, down 14.7% from INR 1.46 billion a year ago. The net finance cost for the company was INR 8.07 billion, down 9.2% from INR 8.88 billion a year ago. The company's other expenses were INR 6.55 billion, down 10.3% on year from INR 7.3 billion. The company's total expense for the quarter was INR 99.28 billion, up 2.2% on year from INR 97.12 billion. 

 

For the half year, the company's consolidated net profit was INR 72.45 billion, down 52.8% on year from INR 153.54 billion. The company's consolidated revenue for the six months ended September was INR 282.95 billion, up 17.9% on year from INR 239.96 billion.

 

On the back of higher sales volume and lower fuel and operating costs, Adani Power's consolidated continuing earnings before interest, tax, depreciation, and amortisation for the quarter was INR 54.02 billion, up 24.6% on year from INR 43.36 billion, the company said. The company's consolidated power sales volume for the quarter was 21.9 billion units, up 21% on year from 18.1 billion units due to improved power demand and higher operating capacity, the company said. For Apr-Sept, the company's consolidated power sales volume was 46 billion units. 

 

Adani Power's plant load factor, the measure of a power plant's capacity utilisation, for the quarter was 66.9% up from 58.3% during the year-ago quarter. For Apr-Sept, the company's plant load factor was 72.3%. The company's effective installed capacity for the quarter was 15,837 megawatt as against 15,250 megawatt a year ago. For the six months ended September, the company's effective installed capacity was 15,545 megawatt as against 14,861 megawatt a year ago. 

 

Adani Power said its board has approved a proposal to raise up to INR 50 billion through secured, rated, listed, and redeemable non-convertible debentures. The company said that while up to INR 25 billion of this will be raised through a public issue, the remaining funds up to INR 25 billion will be raised through private placement in one or more tranches. 

 

Adani Power said its revenue from operations and other income includes amounts pertaining to prior years, based on the orders received from various regulatory authorities and the Supreme Court, besides reconciliation with the power distribution companies relating to various claims towards changes in laws, carrying costs thereon, and delayed interest payment.  

 

Revenues for the quarter and the half year include the contribution from Moxie Power Generation Ltd. and Korba Power Ltd. for September post-acquisition. The revenues of Adani Dahanu thermal power station have not been included as it was acquired on Sept. 30, the company said. The company said that its operating generation capacity as on Sept. 30 was 17,550 megawatts. 

 

Reduction in the reported profit after tax for the half year was mainly due to lower one-time prior period income recognition and higher tax charge as compared with the tax credit availed during the year-ago period, the company said. The company's net one-time income for the quarter was INR 5.98 billion, down from INR 27.81 billion a year ago.

 

Continuing operating revenue growth for the quarter and half year was lower than volume growth due to lower blended tariff realisation following a reduction in imported coal prices, the company said. Sequential growth of 9.1% in continuing revenue was supported by volume growth of 21% on the back of capacity addition and increased power demand. This was partially offset by lower tariff realisation mainly due to lower fuel cost per unit, the company said.

 

Demand for power was flat during the latest quarter due to a prolonged spell of rains. However, the cumulative demand for power for the six months ended September grew 5% as compared with the year-ago period, Adani Power said.

 

Merchant sales saw substantial growth during the quarter and the half year, due to strong power demand, Adani Power said. Power offtake under power purchase agreements also grew during both periods owing to strong power demand from power distribution companies, supported by lower fuel costs, and full-period operation of the Godda power plant in Jharkhand, the company said.

 

During the six months ended September, the company repaid unsecured perpetual securities worth INR 26.71 billion and also paid INR 4.54 billion to the holders as distributions. The company's net debt as on Sept. 30 was INR 308.13 billion. Adani Power's net cash from operations for the six months ended September was INR 104.9 billion. 

 

The company said that its wholly-owned subsidiary, Adani Power (Jharkhand) Ltd., which has a long-term power purchase agreement with Bangladesh Power Development Board for the supply of power from the Adani Power (Jharkhand) 1,600 megawatt thermal power station, is confident of recovering the overdue amounts from Bangladesh Power Development Board. 

 

Adani Power's board has approved the scheme of amalgamation of the company with Adani Power (Jharkhand). The entire assets and liabilities of Adani Power (Jharkhand) will be transferred to and recorded by Adani Power at their carrying values, the company said. The proposed amalgamation is intended to achieve scalability and improve the optimisation of cost and resources, the company said. On Monday, shares of Adani Power closed at INR 598.20 on the National Stock Exchange, up 1%.  End

 

Edited by Manisha Baxla

 

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