Adani Power’s Q3 profit up multiple times on higher revenues

Adani Power’s consolidated net profit in the December quarter rose multiple times to ₹2,738 crore from ₹9 crore a year ago and revenue jumped to ₹13,000 crore (₹7,764 crore).

The company said that the reported revenue included a one-time derecognition of revenue of prior-period items on account of domestic coal shortfall, carrying cost, and late-payment surcharge.

The power producer sold 21.5 billion units (BU) in the quarter (11.8 BU), while the installed capacity rose 11.7 per cent to 15,250 MW.

Higher revenues

Operating profit tripled to ₹5,059 crore due to higher revenues and lower import fuel prices. The higher revenues came from the 1,600-MW Godda thermal power plant of subsidiary Adani Power (Jharkhand) that was commissioned in the first quarter, and also plants in Mundra, Udupi, Raipur, and Mahan. Domestic power sales volumes were driven by growing power demand across India, and offtake under Power Purchase Agreements was supported by falling prices of imported coal and alternate fuel, it said.

Merchant tariffs were higher in the quarter on better demand, but blended tariffs under domestic PPAs were lower due to lower import fuel prices and alternate fuel costs.

In the quarter, finance costs reduced to ₹797 crore from (₹946 crore), mainly due to a reduction in secured and unsecured debt over the past year, partly offset by higher borrowing costs for the Godda power plant.

Capacity expansion

The company said it was on track to expand capacity by 1,600 MW at Mahan, while expansion through inorganic opportunities was also on.

In the third quarter, creditors of Coastal Energen Pvt Ltd, undergoing bankruptcy proceedings, approved Adani Power’s resolution plan as part of a consortium. Coastal Energen operates a 1,200-MW thermal power plant in Tamil Nadu.

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