Adani Power rose 1.41% to Rs 90 after the company reported a consolidated net profit of Rs 278 crore in Q1 FY22 as against a net loss of Rs 682 crore in Q1 FY21.
Consolidated total revenue for Q1 FY22 stood at Rs 7,213 crore, up by 34.7% from Rs 5,356 crore in Q1 FY21. The consolidated revenue for Q1 FY22 includes recognition of prior period net revenue from operations of Rs 125 crore and prior period other income of Rs 532 crore, primarily on account of various regulatory orders and delayed payments by DISCOMs. In comparison, prior period recognition amounted to Rs 8 crore as revenue from operations and a negative other income of Rs 5 crore as in Q1 FY21.
Consolidated EBITDA for Q1 FY22 grew higher by 49% to Rs 2,292 crore as compared to Rs 1,541 crore for Q1 FY21. EBITDA for the quarter improved mainly due to higher volumes, improved merchant tariffs, and higher prior period income recognition, which was partially offset by higher import coal prices.
Finance costs for Q1 FY22 declined by 23.3% to Rs 1,068 crore as compared to Rs 1,392 crore in Q1 FY21 on account of conversion of unsecured loans into unsecured perpetual securities during FY21, term loan repayment, interest rate reduction, and favourable currency movement.
The company reported a pre-tax profit of Rs 450 crore in Q1 FY22 as compared with a pre-tax loss of Rs 634 crore in Q1 FY21.
Adani Power (APL) and subsidiaries achieved improved operational and financial performance in Q1 FY22 as compared to the corresponding quarter of FY21 on back of improved electricity demand.
The company said that the 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 billion units (BU) in Q1 FY22, which is 16% higher than demand of 293 BU during Q1 FY21.
Peak power demand has also improved sharply to 194 giga watts [GW] in Q1 FY22, as compared to 167 GW in Q1 FY21. After the quarter end, peak demand has continued to grow and has reached an all-time high of over 200 GW on 7 July 2021, surpassing the previous all-time high of 197 GW.
Energy deficit has reduced from 0.5% in Q1 FY21 to 0.3% in Q1 FY22, while the peak deficit has increased from 0.4% to 1.2% respectively and spurred improvement in merchant and short-term tariffs.
Average Plant Load Factor (PLF) achieved by APL and its subsidiaries during the first quarter of FY22 was 65%, as compared to 51% achieved in Q1 FY 21. 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.
Consolidated units sold for Q1 FY22 were 16.2 BU, as compared to the Q1 FY21 sales volume of 12.7 BU.
Further, the company said that the Committee of Creditors (CoC) of Essar Power M P (EPMPL), a company undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the resolution plan submitted by APL. 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 (NCLT) has issued a letter of intent (LoI) to APL. The closure of the transaction shall be subject to obtaining necessary approval from the NCLT and satisfaction of conditions precedent under the resolution plan.
Anil Sardana, managing director, Adani Power, said, "Adani Power continues to forge ahead in meeting India's demand for cost-effective and reliable power supply, helping turn the vision of 'Power For All' into reality. Our experience and excellence in various arenas, from plant operations & maintenance to fuel management, coupled with our locational advantage have helped us outperform the sector consistently.
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.
Adani Power (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has an installed thermal power capacity of 12,410 MW spread across six power plants in Gujarat, Maharashtra, Karnataka, Rajasthan and Chhattisgarh, apart from a 40 MW solar power plant in Gujarat.
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