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Adani Power net profit zooms 17 times in June quarter on robust demand

Adani Power net profit zooms 17 times in June quarter on robust demand

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By CNBC-TV18 Aug 3, 2022 8:28:24 PM IST (Updated)

Shares of Adani Power Ltd ended at Rs 341.00, up by Rs 12.35, or 3.76 percent on the BSE.

Adani Power on Wednesday posted a 1,619 percent year-on-year (YoY) jump in consolidated net profit at Rs 4,780 crore for the first quarter ended June. The country's largest private electricity producer posted a net profit of Rs 278.2 crore in the same quarter last financial year.

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Consolidated total revenue stood at Rs 15,509 crore during the period under review, up 115 percent from the corresponding period of the preceding fiscal year. Revenue included recognition of prior period revenue from operations of Rs 2,561 crore and prior period other income of Rs 1,651 crore, primarily on account of various regulatory orders. The corresponding amounts of prior period revenue recognition for the corresponding period in the previous fiscal year were Rs 125 crore and Rs 532 crore, respectively.
"This increase in revenue was aided by increased PPA tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, the revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs, and higher prior period revenue recognition," Adani Power said.
At the operating level, EBITDA stood at Rs 5,719.6 crore in June quarter over Rs 1,648 in the corresponding period last financial year. EBITDA margin stood at 41.7 percent in the reporting quarter as compared to 25.1 percent in the corresponding period last year. EBITDA is earnings before interest, tax, depreciation and amortisation.
During the period under review, Adani Power, along with the power plants of its subsidiaries, achieved an Average Plant Load Factor of 58.6 percent and aggregate sales volumes of 16.3 billion units on an installed base of 13,650 MW. In comparison, during the corresponding period, the Average Plant Load Factor was 64.8 percent and sales volume was 16.2 billion units on an installed base of 12,450 MW.
Operating performance during the quarter was affected due to high import coal prices, which impacted the performance of Mundra and Udupi, while volumes at Raipur and Raigarh were lower due to domestic coal shortage, the company said.
"This was partially offset by improved volumes due to high demand for power at Tiroda and Kawai, and the inclusion of operating performance of the newly acquired Mahan plant," the company said.
Commenting on the company's quarterly results, Anil Sardana, managing director, said, "Adani Power has been able to utilise the opportunities presented by the market situation effectively, leveraging its diversified fleet and operations excellence to meet rising power demand." He said regulatory issues that have been outstanding since long were nearing full resolution.
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