Adani Power's consolidated net loss narrows to Rs 799 crore

The company attributed increased EBIDTA to reduction in consolidated net loss

Adani Power, a subsidiary of Adani Enterprises, has reported a reduction in its consolidated net loss at Rs 799 crore for the second quarter of FY15. The power arm of Gautam Adani-led Adani Group had registered a consolidated net loss of Rs 1,072 crore in the year-ago period.

The company attributed increased earnings before interest, taxes, depreciation and amortisation (Ebitda) to reduction in consolidated net loss in the second quarter of FY15. The consolidated Ebitda increased 64 per cent to Rs 1,246 crore, compared to Rs 759 crore in the same period last year. Meanwhile, the consolidated total income of the company for September quarter surged 36 per cent to Rs 4,148 crore compared to Rs 3,045 crore a year ago.

“Ebitda for the quarter improved due to higher volume of power sold and improved operational efficiencies. Increased Ebidta resulted in lower consolidated net loss of Rs 799 crore in Q2 FY15,” the company said in a statement.  The consolidated total income for the half year ending September 30 increased 68 per cent to Rs 9,373 crore, compared to Rs 5,581 crore in the same period last year. The consolidated Ebidta for the period jumped 129 per cent to Rs 2,891 crore from Rs 1,263 crore in the same period last year. The consolidated net loss reduced to Rs 1,102 crore during the first half of 2014-15.

“Power sector revival is the top priority of the new government and this has been demonstrated through various announcements made to implement radical measures which are heartening for the power sector at large. The ordinance for the coal block auction, measures for easing financing to the power and infrastructure project and other policy initiatives which are planned, will revive the power sector,” said Gautam Adani, chairman of Adani Power.

“Our result reflects higher volume of power generation and improved operational efficiencies, which were offset by the challenges in business that have led to PPAs (power purchase agreements) becoming non-remunerative coupled with limited availability of domestic coal. However, with implementation of policy measures, implementation of tariff orders and improving operational efficiencies, we are confident of a revival in our power business performance. The company has achieved thermal power generation capacity of 9,240 Mw,” said, Vneet Jaain, CEO, Adani Power.