Debt-laden Adani Power reported a consolidated net loss of R1,072 crore for the second quarter ended September, against R261 crore in the year ago quarter, as it continues to battle rising finance costs, a weaker rupee and higher fuel costs from increased coal imports due to limited domestic availability.
Consolidated total income doubled to R3,044 crore, but finance costs more than doubled to R860 crore from R350 crore in the same quarter last year. The company reported a forex loss of R115 crore due to the weak rupee.
The company, which currently has 7260 MW of operational capacity, has faced mounting losses and debts as it has been unable to pass on increased costs of coal imports since it was tied to long-term power supply agreements at a fixed price.
Adani Power received a major boost earlier this year, when the central electricity regulator CERC awarded the company and rival Tata Power a compensatory tariffs for their flagship Mundra plant on account of losses due to an unexpected law change in Indonesia that pushed up costs. The CERC panel proposed that Adani?s Mundra power tariff be raised by 60 paisa per unit, and has asked the state discoms to respond.
Adani Power, which expects to expand to 9,240 MW by FY14, sold 9.1 billion units of electricity during Q2FY14, compared with 4.1 billion units in Q2FY13, due to sales from capacity it has added over the past year.