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Adani Power gains on buzz of interim relief from MERC

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Capital Market
Last Updated : Aug 22 2014 | 12:15 AM IST

Adani Power rose 3.60% to Rs 35.95 at 13:49 IST on BSE on reports that MERC allowed 57 paise extra per unit for power to be supplied over and above the 520 megawatts from the company's Tiroda units 2 and 3 in Maharashtra's Gondia district.

Meanwhile, the BSE Sensex was up 293.88 points, or 1.64%, to 18,199.79.

On BSE, 3.09 lakh shares were traded in the counter compared with average volume of 8.82 lakh shares in the past one quarter.

The stock hit a high of Rs 36.60 and a low of Rs 34.25 so far during the day. The stock hit a record low of Rs 29.45 on 5 August 2013. The stock hit a 52-week high of Rs 70 on 20 December 2012.

The stock had underperformed the market over the past one month till 21 August 2013, sliding 12.48% compared with the Sensex's 11.14% decline. The scrip had also underperformed the market in past one quarter, falling 42.79% as against Sensex's 10.97% fall.

The mid-cap company has an equity capital of Rs 2871.92 crore. Face value per share is Rs 10.

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According to reports, MERC (Maharashtra Electricity Regulatory Commission) on Wednesday, 21 August 2013, allowed 57 paise extra per unit for power to be supplied over and above the 520 megawatts (MW) from Adani Power's Tiroda units 2 and 3 in Maharashtra's Gondia district.

MERC reportedly clarified this was a temporary relief over and above the levelised power purchase agreement (PPA) rate of Rs 2.642 per unit for power supplied from these units beyond the first 520 MW. The total generation capacity is 1,320 MW, reports added.

This temporary charge will be applicable either for a maximum of one year from Wednesday, 21 August 2013, or until a decision is taken on the recommendations by an in-house commitee, reports added.

Adani Power reported consolidated net loss of Rs 1198.29 crore in Q1 June 2013, higher than net loss of Rs 809.81 crore in Q1 June 2012. Total income rose 65.29% to Rs 2571.66 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) stood at Rs 424 crore as against loss of Rs 45 crore in Q1 June 2012.

Adani Power's net loss during the quarter was due to MTM provision for rupee depreciation, non-cash items like depreciation, provision for deferred tax and higher import of coal due to limited availability of domestic coal.

Adani Power is the largest private thermal power producer in India. It is currently developing six power projects across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. The company currently has an operational capacity of 7,260 megawatts (MW). It intends to achieve thermal power generation capacity of 9,240 MW by FY 2014.

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First Published: Aug 22 2013 | 1:52 PM IST

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