Adani Power reported a narrower loss and higher revenue over the same quarter of the previous fiscal on account of greater power generation in the quarter ended September 30.
The company posted a loss of Rs 798.71 crore, compared with a loss of Rs 1,071.91 crore in Q2FY15. Net sales were
Rs 4,140.73 crore for the quarter, an increase of 36%.
“Our results reflect higher volume of power generation and improved operational efficiencies which were offset by the challenges in business that have led to PPAs becoming non-remunerative coupled with limited availability of domestic coal,” said Vneet Jaain, CEO, Adani Power.
Despite the strong results, the company did not meet analysts’ expectations of its bottomline. The Street estimated Adani Power to post a loss of 578 crore, according to an analyst polled by Bloomberg. Its Q2FY15 sales, however, surpassed expectations of Rs 3,920 crore.
The company sold 10.49 billion units during Q2FY15, an increase of 15.6% y-o-y. Fuel costs rose 21% y-o-y to Rs 2,506.02 crore. Finance costs, over the same period, jumped 42% to Rs 1,347.88 crore.
“Power sector revival is the top priority of the new government and this has been demonstrated through the various announcements made to implement radical measures which are heartening for the power sector at large,” Gautam Adani, chairman, Adani Power, said in a statement.