Adani Power Q2 Earnings | Net profit up nearly 850% boosted by tax credit

Adani Power on Thursday, November 2, reported a remarkable surge in its net profit for the quarter ending on September 20, 2023, reaching Rs 6,594 crore, an 848% increase from its previous figure of Rs 696 crore. This substantial growth can be attributed to a one-time tax credit of Rs 1,371 crore.

The company's revenue from operations also exhibited significant growth, amounting to Rs 12,990.58 crore, reflecting an 84.42% increase compared to the same quarter in the previous year, when it was at Rs 7,043.77 crore. It's worth noting that this revenue figure incorporates one-time adjustments related to domestic coal shortfall amounting to Rs 1,125 crore.

The boost in revenue is attributed to various factors, including increased sales volumes, contributions from the Godda power plant, and higher merchant sales. Adani Power said its ability to take advantage of lower import coal prices played a key role in boosting power off-take under import coal-based Power Purchase Agreements (PPAs) for the Mundra and Udupi plants. Tariffs under these agreements are determined through approved regulatory processes that track international coal prices.