Adani Power reports Rs 298 crore net profit in Q2
Adani Power posted a consolidated net profit of Rs 297.71 crore in the quarter ended September 30, mainly due to higher revenues and lower borrowing cost. The company had suffered a consolidated net loss of Rs 313.05 crore in quarter ended September 30, 2016, Adani Power said in a BSE filing.
According to the statement, its total income rose to Rs 6,462.47 crore in second quarter from Rs 5,670.25 crore a year ago. The company’s consolidated net loss narrowed to Rs 161.14 crore in April-September this fiscal from Rs 545.68 crore in the corresponding period last year. It had suffered a loss of Rs 6,174.10 crore in the fiscal ended on March 31, 2017.
Adani Power said average Plant Load Factor (PLF or capacity utilisation) achieved during the second quarter of FY 2017-18 was 63 per cent as compared to 70 per cent in the second quarter of 2016-17. It explained that 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 CERC’s (Central Electricity Regulatory Commission) interim order September 28, 2017, following the Supreme Court’s judgement of April 11, 2017.
Its finance cost for Q2 FY18 was Rs 1,389 crore as compared to Rs 1,434 crore in the same period last fiscal. 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 results Gautam Adani, Chairman, Adani Power said, “The bidding for coal linkages under SHAKTI programme for plants having PPAs (power purchase agreements), 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 said, “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”.