Adani Power reports turnaround Q2 earnings

The Adani group firm reported profit after tax for Q2 FY23 at Rs 696 crore as against loss of Rs 231 crore in Q2 FY22, due to higher one-time income.

Consolidated total income for Q2 FY23 was higher by 52% at Rs 8,446 crore compared with Rs 5,572 crore in Q2 FY22. This increase in revenue was aided by improved tariffs under long term Power Purchase Agreements (PPAs) on account of higher import coal prices, as well as improved merchant/short term tariffs due to higher demand.

The revenue for Q2 FY23 includes one-time items of Rs 912 crore, primarily in the form of higher other income on account of late payment surcharge. In comparison, the income for Q2 of previous year included one-time revenue recognition of Rs 141 crore.

 

Consolidated EBITDA for Q2 FY23 stood 51% higher at Rs 2,350 crore, as compared to Rs 1,551 crore in Q2 FY22, mainly on account of higher one-time income, which was partially offset by higher operating expenses.

Anil Sardana, managing director, Adani Power, said, "Conventional power continues to act as the bedrock of India's stable grids, thereby enabling investments in renewable energy for achieving the nation's ambitious targets for carbon intensity reduction. Even as the world grapples with the fallout of geopolitical instability in the energy sector, India's natural resources such as solar energy, wind, and coal have helped protect its economy despite reliance on imports of fossil fuels. Adani Power, is positioned ideally to support India's growing energy needs and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it. We will continue to seize value accretive opportunities and pursue our long-term growth strategies to leverage our complementarity with the Adani Group's energy portfolio and partnerships in natural gas and solar energy."

During Q2 FY23, the company and its subsidiaries achieved an average Plant Load Factor (PLF) of 39.2% and power sale volume of 11 Billion Units (BU), as compared to PLF of 48.7% and power sale volume of 12.4 BU in Q2 FY22. The operating performance for Q2 FY23 includes the 1,200 MW power plant of Mahan Energen, which was acquired in March 2022.

During the quarter, performance was affected by high import coal prices leading to grid back downs and Reserve Shutdowns at Mundra and Udupi. Volumes were constrained at other plants due to challenges in fuel availability despite higher power demand.

Adani Power is engaged to sells power generated from 40 MW solar power project under long term Power Purchase Agreement (PPAs) and also engaged in trading and other commercial activities.

Shares of Adani Power were down 2.80% at Rs 350 on BSE.

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