Adani Power falls in profits by 96%

10 Feb 2023 CW Team

Adani Power reported 96 per cent decline in consolidated net profit at Rs 87.7 million for December quarter 2022-23 mainly on the back of higher expenses

Adani Power reported a 96% drop in consolidated net profit to Rs 87.7 million for the December quarter 2022-23, owing primarily to higher expenses.

The profit in the previous year was Rs 2.18 billion, according to a BSE filing.

Total expenses increased in the quarter to Rs 80.78 billion from Rs 53.89 billion. Total income increased to Rs 82.90 billion from Rs 55.93.58 billion in the previous year's same period.

During the quarter, the company and its subsidiaries achieved an average Plant Load Factor (PLF) of 42.1 percent and a power sale volume of 11.8 billion units (BU), compared to a PLF of 41% and a power sale volume of 10.6 BU in Q3 FY22.

The operating performance for Q3 FY23 includes the performance of Mahan Energen Ltd's 1,200 MW power plant, which was acquired in March 2022.

Operating performance was hampered during the quarter under review primarily due to high import coal prices and insufficient domestic fuel availability due to high power demand.

"Adani Power Ltd has consistently demonstrated its superior skills in project execution, excellence in power plant operations, and capabilities in fuel and logistics management, which has helped it turn around stressed power assets acquired under schemes of corporate debt resolution, apart from setting various benchmarks in its greenfield power plants," Anil Sardana, Managing Director, Adani Power said in a statement.

With the majority of its regulatory issues now resolved, the company is well positioned in terms of liquidity to meet its current commitments and growth requirements, he added.

With its strategically located and efficient power plants, Adani Power is poised to capitalise on India's growing power demand and provide stable, reliable, and affordable power supply, all while improving the communities around it, he believes. Adani Power's proposed Scheme for Amalgamation with six of its operating subsidiaries has been approved by its secured creditors. It is expected that the amalgamation process will be completed soon.