Adani Power post PAT of Rs 278 cr in Q1FY22 versus Rs 682 loss a year ago

Receives LoI for acquiring Essar Power MP from Resolution Professional

Adani Power Ltd (APL) registered a profit after tax of Rs 278 crore in the first quarter ending June 2021 for the current fiscal, as against a loss of Rs 682 crore during the same period last fiscal. The total comprehensive income for Q1FY22 was Rs 270 crore, compared to comprehensive loss of Rs 705 crore for Q1FY22.

The company attributed the gains to the rising electricity demand. “Electricity demand in the country has recovered smartly after the slump witnessed during the Covid-19 lockdown in Q1 FY21. Resumption of normal economic activity, coupled with inherent demand drivers has propelled the aggregate electricity demand to 341 BU in Q1FY22, which is 16 per cent higher than demand of 293 BU during Q1 FY21,” said the company in its statement.

The company said its power generation units had an average Plant Load Factor (PLF) of 65 per cent versus 51 per cent in Q1FY21. “Rise in PLF was a result of improved power demand in various States apart from better tariffs and volumes in the merchant and short-term markets,” said APL’s statement. It said the consolidated units sold for Q1FY22 were 16.2 BU, as compared to the Q1FY21 sales volume of 12.7 BU.

APL said, the Committee of Creditors of Essar Power M P Ltd, which was undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the Resolution Plan submitted by the company. EPMPL owns a 1,200 Mw power plant in Singrauli Dist, Madhya Pradesh.

Pursuant to this approval, the Resolution Professional appointed by the National Company Law Tribunal, Delhi has issued a Letter of Intent to APL, said the company.

Anil Sardana, Managing Director, Adani Power Limited, said, “As we move closer to acquiring and turning around the fourth power asset, we are focusing on various excellence initiatives to enhance safety, reliability, predictability, and profitability of our entire portfolio. Various regulatory petitions, which are at concluding stages, will help release long-awaited cash flows and improve our liquidity position and competitive edge.”