Adani Power Q2 profit zooms 848% to ₹6,594 cr on higher income, tax gain

Adani Power, a part of Adani Group, today announced consolidated profit after tax (PAT) of ₹6,594 crore for the July-September quarter of FY24, which is higher by 848% as compared to ₹696 crore during the same period last year.

Adani Group company has attributed improved EBITDA, higher one-time income, and recognition of deferred tax assets as prime reasons for higher profit in the said quarter.

The company said its profit on a half-yearly basis came out at ₹15,354 crore, which increased 180% as compared to ₹5,475 crore in H1 FY23.

The company's consolidated revenue for Q2 FY24 was higher by 61% at ₹12,155 crore against ₹7,534 crore in the same period last year, mainly due to greater sales volumes. In the first half of the fiscal year, the revenue grew 26% to ₹23,767 crore on greater sale volume.

Q2 FY24 EBITDA was recorded at ₹4,336 crore, up by 202%, against ₹1,438 crore for Q2 FY23, thanks to greater sales volumes, lower fuel cost, and higher merchant tariffs.

Depreciation charge increased to ₹1,004 crore from ₹833 crore in the year-ago period, while finance costs also increased to ₹888 crore from ₹818 crore on borrowing cost for the Godda power plant.

The company sold 18.1 billion units (BU) of power in the quarter (Q2 FY24), which increased by 65% from 11 BU in Q2 FY23 on improved power demand and higher operating capacity. In the first half of the fiscal year, the company's power sale volume was at 35.6 BU in H1 FY24, up 30% YoY.

"The operating performance for Q2 FY 2023-24 includes the 1,600 MW Godda Ultra-supercritical thermal power plant of APL’s subsidiary Adani Power (Jharkhand) Limited (APJL), which was commissioned in Q1 FY 2023-24," Adani Power says in an exchange filing.

The company has attributed improved performance to higher power offtakes in Mundra, Udupi, Raipur, and Mahan plants apart from the incremental contribution of Godda for record profit. Adani Power's Godda plant has ramped up its operations in a short time after commissioning. 

During the six months ended 30th September 2023, Adani Power and its subsidiaries including APJL achieved an average plant load factor (PLF) of 59.2% and sales of 35.6 BU, as compared to a PLF of 48.9% and sales volume of 27.3 BU in the six months ended 30th September 2022.  

SB Khyalia, CEO, Adani Power Ltd, says Adani Power’s proven capabilities are being supplemented with the deployment of digitalisation, analytics, and cutting-edge technologies to provide a stable, reliable, and affordable power supply in a sustainable manner. "As opportunities in the Indian power market grow, we stand geared to enhance our contribution as the leading private power producer and to meet the nation’s growing energy needs.” 

The Adani stock grew 3.07% to ₹376.20 on the BSE today, with the stock touching an intra-day high of ₹393.15. At the current share price, the stock is trading 8% down as compared 52-week high of ₹410 achieved on September 12, 2023, and its m-cap stands at ₹1,45,618.73 crore.