Adani Power posted a consolidated net profit of Rs 297.71 crore in the quarter-ended September, mainly due to higher revenues and lower borrowing cost. The company had suffered a consolidated net loss of Rs 313.05 crore in the year-ago period, Adani Power said in a BSE filing on Saturday. According to the statement, its total income rose to Rs 6,462.47 crore in the second quarter from Rs 5,670.25 crore a year ago. The company’s consolidated net loss narrowed to Rs 161.14 crore in the quarter under review from Rs 545.68 crore in the year-ago period. It had suffered a loss of Rs 6,174.10 crore in the financial year ended March 2017. Adani Power said average plant load factor (PLF or capacity utilisation) achieved during the quarter under review was 63% as compared to 70% in the year-ago period. It explained this drop was on account of customer back downs, planned maintenance shutdowns, and domestic coal shortages.
The increase in revenues was mainly due to receipt of interim relief from Haryana discoms as change in law for shortfall in domestic coal, pursuant to the Central Electricity Regulatory Commission’s (CERC) interim order on September 28, following the Supreme Court’s judgment on April 11. Its finance cost for the quarter was Rs 1,389 crore as compared to Rs 1,434 crore in the year-ago period. The reduction in finance cost was primarily due to favourable currency movement during the quarter as well as reduction in short-term loans. Finance cost for the first half of FY18 was Rs 2,796 crore as compared to Rs 2,885 crore a year ago.
Commenting on the results, Gautam Adani, chairman, Adani Power said, “The bidding for coal linkages under Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) programme for plants having power purchase agreements (PPAs), which was held recently, will allow power plants such as our Tiroda and Kawai projects to get an assured supply of domestic coal.” He further added, “The Saubhagya scheme will accelerate the provision of power connections to a vast, under-served section of our nation, and give a major impetus to power demand growth. The recently signed PPA of 1,496 MW with the Bangladesh Power Development Board will help Adani Power to diversify its portfolio.”