Adani Power’s Q4 loss widens to Rs4,960 crore after SC decision on compensatory tariff
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Ahmedabad: Adani Power Ltd, a part of the Adani Group, posted a net loss of Rs4,960.53 crore for the fourth quarter ended March 2017 as compared to a profit of Rs1,012.19 crore in the corresponding quarter of the previous year.
The recent Supreme Court judgement turned down the company’s compensatory tariff proposal for Mundra plant as a result of which the company had to write off about Rs3,620 in the quarter ended in March 2017.
The company also faced a loss from operations to the tune of Rs900 crore for the fourth quarter as compared to a profit of Rs1,085 crore in the corresponding quarter last year. Consolidated total income for Q4 2017 was Rs6,587 crore as compared to Rs7,757 crore in the corresponding quarter in the year previous. The company sold 16.31 billion units of power in Q4FY17 as compared to 17.06 billion units in Q4FY16.
During the year, the company wrote off receivables pertaining to compensatory tariff for Mundra plant, totalling to Rs3,620 crore that were recognised up to March 2016, as well as other receivables and advances totalling to Rs457 crore, as exceptional items, Adani Power said in a media statement on Saturday.
In April, the Supreme set aside a decision of Central Appellate Tribunal for Electricity to allow Adani Power and Tata Power to charge compensatory tariff against the increased imported coal cost from Indonesia.
“Consequent to outcome of the Supreme Court judgement, we have engaged with the stakeholders for possible remedial measures for long term sustainability of the Mundra Plant. With the Government’s continuous efforts to remove the hurdles faced by the power sector, and encouraging reforms like the new coal linkage policy, we are seeing an improvement in the business environment. Allocation of linkage under the new policy will allow us to access domestic coal, and do away with the need for compensatory tariffs for our power plants going forward,” Gautam Adani, chairman, of Adani Power said in a media statement.
Total income for the year FY17 reduced by 10% to Rs23,203 crores as compared to Rs25,734 crores in FY16 due to non-recognition of Compensatory Tariff for Mundra plant, the company said in its statement. The income incurred a loss of Rs6,170 crore year FY17 as compared to a profit of Rs582 crore in FY16.