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.
In addition to its operating revenue, the company also reported other income of Rs 1,945 crore for the quarter. This figure incorporates one-time adjustments related to prior period items, specifically Rs 1,656 crore in the form of carrying costs and late payment surcharges.
Following this positive financial performance, the company's share price experienced a surge of nearly 7%, reaching Rs 390.40 on the BSE.
Adani Power revealed that during Q2FY24, both APL and its subsidiaries achieved an average Plant Load Factor (PLF) of 58.3%, along with a substantial power sales volume of 18.1 Billion Units (BU). This represented a significant improvement over Q2 FY23 when the PLF was 39.2%, and power sales volume reached 11 BU on the back of increased power demand and enhanced operating capacity.
Furthermore, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for Q2FY24 demonstrated an increase, reaching Rs 4,336 crore, which is 202% higher than the figure from Q2FY23, which was Rs 1,438 crore, mainly due to lower fuel costs, higher merchant tariffs, and the inclusion of the Godda power plant in its operations.
