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Adani Group’s power arm, Adani Power Limited posted standalone net loss of ₹1.31 crore for the quarter ended September 30, 2018 as against net loss of ₹40 crore in the corresponding quarter a year ago. Standalone revenues for the operations stood at ₹1794 crore for the quarter ended September 2018 as against ₹3,361 crore in the corresponding quarter a year ago, indicating a decline in revenues to the tune of 47 per cent on year-on-year basis.
On consolidated basis, company posted net profit of ₹387 crore for the quarter under review as against ₹315 crore same quarter a year ago. Consolidated revenues from operations stood at ₹7182 crore for the quarter as against ₹6159 crore last year.
Policy for valuation
“The Group has changed its accounting policy for valuation of coal from weighted average cost method to First In First Out (FIFO) method w.e.f 1st April 2018,” the company informed in a note.
For the six-month period (April-September), standalone net loss stood at ₹42 crore as against ₹245 crore last year.
On consolidated basis, company posted net loss of ₹438 crore for the six-month period as against ₹136 crore reported last year. Average Plant Load Factor (PLF) for the second quarter stood at 65 per cent, higher as compared to 63 per cent achieved in same quarter last year.
This growth was on account of better coal availability and strong demand from DISCOMs, the company informed here. Finance cost for for the second quarter increased to ₹1,407 crore as compared to ₹1,389 crore last year due to higher borrowing during the quarter, which was partially offset by gains on forex hedges, it added.
Sustainable operations
Gautam Adani, Chairman, Adani Power said, “We are pleased to note the progress in ensuring sustainable operations of the Mundra power plant, with the Hon’ble Supreme Court permitting the Gujarat government to approach the CERC for implementation of recommendations made by the High Power Committee.”
“We have also received other important regulatory and judicial approvals for compensation claims of our projects at Tiroda and Kawai. With the quick ramp up of coal supplies under SHAKTI, we firmly believe that these developments will help the plants achieve cash flow certainty and improvement in long-term profitability,” he said.
Adani Power shares gained 2.5 per cent to close at ₹45.9 on the NSE on Wednesday.
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