Adani Power posts net profit of Rs2,529 crore in March quarter
The firm, a subsidiary of Adani Enterprises, had posted a loss of `586 crore in the year-earlier period
Ahmedabad: Adani Power Ltd, India’s largest private power producer, on Thursday reported net profit of ₹ 2,529 crore in the March quarter on higher tariff and improved performance.
The firm, a subsidiary of Adani Enterprises Ltd, had posted a loss of ₹ 586 crore in the year-earlier period. It has been reporting losses for nine quarters to December.
Revenue more than tripled to ₹ 5,996 crore from ₹ 1,889 crore a year ago. The company attributed this rise mainly to a recognition of compensatory tariff of past periods, reassessment of deferred tax liability and improved operational performance.
Adani Power got some relief in February after India’s apex power sector regulator Central Electricity Regulatory Commission (CERC) allowed it to raise prices due to rising fuel costs.
For the 4,620MW Adani project, customers in Haryana and Gujarat were asked to pay an additional 43 paise per unit and 71 paise per unit, respectively, in the fiscal fourth quarter. CERC had also ordered a payment of ₹ 829.75 crore by the two state utilities to Adani Power.
Revenue also increased because of improved plant load factor of 74% at Mundra and addition of new capacities at Tiroda and Kawai power plants. Earnings were boosted on account of recognition of compensatory tariff ordered by CERC, the company said in a statement.
“The past year has been a momentous one for everyone at Adani Power as our efforts have made us the largest private power producer in India with an installed capacity of 8580 MW," chairman Gautam Adani said. “Further, positive developments like compensatory tariff order, financial restructuring plan for SEBs (state electricity boards) and other initiatives by the government will revive the investment cycle in the sector."
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