At Rs 5,980 crore (+8.7% y-o-y), Adani Power’s (APWR’s) 3QFY16 normalised revenues were 4% below our forecast (volume was in line, but blended realization came in 4% lower). At R1,800 crore, normalised Ebitda was 4% below our forecast, but in-line with consensus. Normalised Ebitda excluding compensatory Ttriff (CT) for 3QFY16 was in line with our forecast.
APWR reported a PAT of Rs 100 crore in 3QFY16 (vs our forecast of Rs 0.9 billion reported net loss). However, on a normalised basis, APWR remained in the red – the net loss being Rs 943 million (sharply lower vs. our/consensus net loss forecast of R2.4 billion/Rs 2.7 billion respectively, driven entirely due to a beat in finance cost). We normalise 3QFY16 reported financials for Rs 2.1 billion prior-period CT (Rs 810 million at Kawai, Rs 960 million at Tiroda and Rs 320 million at Mundra), and Rs 130 million net f/x loss included in reported finance cost.
Notably, the management disclosed the exchange fluctuation impact in the 2QFY16 and 3QFY16 reported finance cost. Based on the same, the 13%q-o-q drop in reported finance cost is primarily on account of lower exchange fluctuation loss in 3QFY16, thus explaining the beat in the finance cost. In turn, we believe this explains why our/consensus net loss forecast was higher.
