Companies

Adani Power suffers loss on high price of imported coal

| | Updated on: Aug 01, 2012
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Adani Power Ltd (APL), a subsidiary of the flagship Adani Enterprises Ltd (AEL), on Wednesday reported a 79 per cent increase in income, but posted a massive loss of Rs 792.98 crore in the first quarter ended June 30, 2012-13, due mainly to the higher price of imported coal and non-availability of transmission lines. It posted a PAT of Rs 176.85 crore in the corresponding period last fiscal,

The total income increased to Rs 1,464 crore (Rs 819 crore) due to an increase in capacity to 3,960 MW in Q1 FY13 from 1,980 MW in Q1FY12, the company said in a press release announcing the unaudited results for the first quarter.

On Wednesday, APL’s share price closed 0.80 per cent down at Rs 43.30 on the BSE.

Commenting on the financial performance, Mr Gautam Adani, Chairman, said APL’s power business has been impacted by factors beyond its control including the non-availability of domestic coal, high prices of imported coal and limited availability of transmission lines. The company is moving as scheduled to commission two power projects this fiscal at Tiroda and Kawai, he added.

Adani Power has signed a fuel supply agreement with Coal India Ltd (CIL) for its three 660 MW thermal power generation units at the Mundra power plant.

Mr Prabal Banerji, CFO, said the company’s profitability, already impacted by high priced coal imports, was further aggravated by non-cash book entries such as depreciation and unrealised losses on account of provision of rupee depreciation in keeping with prudential accounting norms.

APL, India’s largest private thermal power producer, commissioned the country’s largest high voltage direct current (HVDC) power transmission system during the first quarter, connecting its Mundra project in Gujarat to Mohindergarh in Haryana, via Rajasthan. Set up at a cost of about Rs 3,400 crore, this transmission line is the longest dedicated line in the private sector, set up in 24 months for supplying power to North India.

The company expects to achieve the expansion of capacity from the current 4,620 MW to nearly 10,000 MW by March 2013.

Published on March 12, 2018

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