BackAdani Power posts Q3 net loss of Rs545 crore
The net loss was on account of higher imported coal cost
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Ahmedabad: Adani Power Ltd., a subsidiary of Adani Enterprises Ltd., reported its ninth quarterly loss in a row on Monday, hurt by the import of costlier coal.
The company posted a net loss of Rs545 crore for the quarter ended 31 December, compared with a net loss of Rs619 core in the year-ago period.
Adani Power’s consolidated revenue increased by 120% to Rs4,240 crore in the three months from Rs1,928 crore in the same period last year. The quarter’s result reflected an improved plant load factor (PLF)—a measure of operational efficiency—of 75% compared with 63% in the preceding quarter.
The net loss was on account of higher imported coal cost, the company said in a statement.
“The challenges of limited domestic coal availability and non-remunerative PPA (power purchase agreement) prices continued to impact our financial performance," Adani Power chief financial officer Vinod Bhandawat said in the statenment.
The quarter’s result reflected an improved PLF of 75% compared with 63% in the preceding quarter.
He added that with “increased operational capacity, improving operating efficiencies, implementation of policy initiatives like CERC guidelines on tariff revision and reforms on SEBs and rail infrastructure for coal transportation, the company was confident of better performance in the next quarters".
In April 2013, India’s apex power sector regulator, the Central Electricity Regulatory Commission (CERC), delivered a ruling that could allow the company to offset losses on account of the unexpected increase in the price of imported coal and the unavailability of domestic coal for the company’s 4,620MW thermal power project in Mundra, Gujarat. A final decision in the matter is pending.
The company said it expected to achieve thermal power generation capacity of 9,240 MW by FY14.
On Monday, shares of the company closed at Rs33 per share, down by 3.79% from the previous day, as the BSE’s benchmark Sensex fell 2% to 20,707.45.
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