Adani Power Reports Eightfold Rise in Q2 Net Profit, Stock Surges 3%

3 Nov 2023 , 01:01 PM

Adani Power’s stock saw a 3 % increase on November 3 after the company reported a net profit of Rs 6,594 crore in the September quarter, a more than eightfold rise from the previous year. The revenue also surged by 84 %.

The significant increase in net profit was due to a one-time gain of Rs 1,371 crore attributed to a tax credit. Adani Power credited the revenue boost to higher sales volumes, including contributions from the Godda power plant, and increased merchant sales.

Lower import coal prices led to higher power off-take under import coal-based power purchase agreements (PPAs) for the Mundra and Udupi plants, which followed approved regulatory processes and international coal price tracking.

Adani Power and its subsidiaries achieved an average plant load factor (PLF) of 58.3 % and a power sales volume of 18.1 billion units due to improved power demand and enhanced operating capacity.

The company’s EBITDA surged by over 200 % year-on-year, reaching Rs 4,336 crore, primarily driven by reduced fuel costs, higher merchant tariffs, and the inclusion of the Godda power plant.

Following the announcement, Adani Power’s stock price rose by nearly 7 % before closing at Rs 372.95 per share. Despite a 52-week low of Rs 132.40 in February, Adani Power has witnessed a more than 66 % gain in the past six months.

An American shortseller’s report had earlier accused the Adani group of stock manipulation and financial irregularities, but these charges were refuted by the conglomerate.

Adani Power is currently trading around 6 % below its 52-week high of Rs 409 reached on September 12, 2023. The promoters reduced their holdings in the company to 70.02 % during the September quarter, down from 74.97 % in the June quarter.

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