Adani Power Q2 Results: Reports Profit On Higher Other Income

Adani Power Ltd. turned profitable in the quarter ended September, as its other income rose fourfold. 

The billionaire Gautam Adani-owned independent power producer reported a net profit of Rs 695.5 crore for the three-month period ended September, compared to a loss of Rs 230.6 crore a year earlier. 

Other income for the same period rose to Rs 1,402 crore compared to Rs 388 crore a year earlier.

Adani Power Q2 FY23 Highlights (YoY) 

• Revenue from operations rose 35.8% YoY to Rs 7,043.7 crore on higher tariff realisation during the quarter.

• Earnings before interest, taxes, depreciation and amortisation or Ebitda for the period were down 18.5% year-on-year to Rs 947.7 crore.

• Ebitda margin for the quarter was down at 13.4% against 22.4% a year earlier. 

Adani Power and its subsidiaries achieved average Plant Loda Factor of 39.2% against 48.7% a year ago, and power sale volume of 11 billion units against 12.4 billion units. 

The operating performance for Q2 FY23 included the performance of the 1,200 MW Mahan Energen Ltd., which was acquired in March 2022. 

“During the quarter, performance was affected by high import coal prices leading to grid back-downs and reserve shutdowns at Mundra and Udupi,” the company said, in an exchange filing. 

“Volumes were constrained at other plants due to challenges in fuel availability despite higher power demand,” the company said. 

According to Anil Sardana, managing director at Adani Power, conventional power has acted as the bedrock of India’s stable grids, and enabled investments in renewable energy to achieve the nation’s ambitious targets for carbon intensity reduction. 

Even as the world grapples with the fallout of geopolitical instability in the energy sector, India’s natural resources such as solar energy, wind, and coal have helped protect its economy despite reliance on imports of fossil fuels, he said. 

“Adani Power is positioned ideally to support India’s growing energy needs and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it," he said.

The company will continue "to seize value-accretive opportunities and pursue long-term growth strategies to leverage complementarity with the Adani Group’s energy portfolio and partnerships in natural gas and solar energy”, Sardana said. 

Shares of Adani Power fell 3.7% in Friday's trade, compared with a 1.95% rise in the benchmark BSE Sensex.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.