More Stories

Informist, Wednesday, Jan. 29, 2025

By Aman Aryan

MUMBAI – A rise in power sales volume and a one-time prior period income recognition drove Adani Power Ltd.'s earnings for the December quarter. The power and energy company's consolidated net profit for the quarter recorded an on-year growth after falling for the last three quarters in a row.

Adani Power's consolidated net profit for the December quarter rose 11.7% on year to INR 30.57 billion. The company received a one-time prior period income of INR 14 billion during the quarter due to closure of contractual matters and recognition of carrying cost income as well as late payment surcharges. Adani Power also recognised INR 8.72 billion of tariff compensation claims and INR 170 million of delayed payment surcharge during the quarter. These realisations were related to non-availability of coal for its Tiroda thermal power plant.

The company's consolidated revenue continued the five-quarter streak of on-year growth in the December quarter as well. Adani Power reported a 5% on-year growth in its consolidated revenue to INR 136.71 billion for the quarter. The power company's revenue has grown 3% and 36% in the previous two quarters respectively. In Jan-Mar, Oct-Dec, and Jul-Sept of 2023-24 (Apr-Mar), the company's revenue grew 30%, 67%, and 84%, respectively.

The company's consolidated power sales volume rose 8% on year to 23.3 billion units during the December quarter due to an improvement in power demand and higher operating capacity. The plant load factor for the company's 17.55 gigawatts of installed capacity fell 470 basis points in the December quarter to 63.9%. The installed capacity for the company in the year-ago quarter was 15.25 GW. For Apr-Dec, the company's plant load factor was 69.3% compared with 62.4% a year ago, on an installed capacity of 17.55 GW compared to 15.25 GW a year ago.

Overall demand for power in India grew 4.3% on year to 393 billion units in the December quarter, the company said in a release. While the company cited improved demand as a reason for its higher power sales volume, it said overall demand growth was slower in India due to cold weather. Consequently, the average market clearing price on the Indian Energy Exchange fell 26% on year to INR 3.71 per kilowatt-hour during the quarter, Adani Power said, and added that it expects merchant prices to improve going forward as the Indian government has estimated demand to peak in the summer of 2025. Power demand was nearly 250 GW in the summers of 2024.  

The power company's consolidated earnings before interest, tax, depreciation, and amortisation rose 23% on year to INR 61.85 billion as it posted a nearly 2% on-year fall in fuel costs for the quarter. Adani Power's fuel cost for the quarter was INR 74.25 billion.

Continuing EBITDA for the quarter was down 5.4% at INR 47.86 billion, the company said, adding that merchant tariffs recognised in the quarter were lower compared to the year-ago quarter. The Adani group's power company recorded an over 219% on-year surge in other income for the December quarter to INR 11.62 billion. 

For Apr-Dec, the company's consolidated net profit was INR 103.02 billion, down from INR 180.92 billion in the year-ago period. The company's consolidated revenue rose to INR 419.66 billion in the nine months ended Dec. 31, from INR 369.88 billion a year ago. While the company realised higher on-year one-time income in the December quarter, this metric was lower on year for the nine-month period ended December. One-time revenue recognition of prior period items was INR 24.20 billion in Apr-Dec, down from INR 92.27 billion a year ago.

During the December quarter and Apr-Dec, the company repaid unsecured perpetual securities worth INR 3.77 billion and INR 30.49 billion, respectively. 

The board Wednesday approved increasing the fund-raising limit of the company through non-convertible debentures to INR 110 billion from INR 50 billion. Adani Power also approved to raise INR 50 billion through qualified institutional placement of equity shares in one or more tranches. 

The company signed a power supply agreement with Maharashtra State Electricity Distribution Co. Ltd. to supply 1.5 GW of power for 25 years. Under the agreement, two units of new ultra-supercritical thermal power project at Raipur in Chhattisgarh will supply power. The 1.6 GW-project is being set up as an expansion of the company's 1.4 GW power plant at Raipur.

Wednesday, shares of the company closed at INR 522.75 on the National Stock Exchange, up 5.1%.  End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.