Adani Power hits record high as Q1 net zooms 17-fold; up 221% in 6 months

A nation-wide heatwave and broadening of the recovery in economic activity continued to drive electricity demand growth in the first quarter of FY23, the company said.

Shares of Adani Power hit a record high of Rs 352.30 as the stock gained 3 per cent on the BSE in Thursday’s intra-day trade after the company reported 17-fold jump in its consolidated profit after tax (PAT) at Rs 4,780 crore in the June quarter (Q1FY23).  The Adani Group electric utility company had posted PAT of Rs 278 crore in Q1FY22.

In the past one month, the stock has surged nearly 35 per cent as compared to 10 per cent rally in the S&P BSE Sensex. In the last six months, the stock has zoomed 221 per cent as against 0.1 per cent decline in the benchmark index.

In Q1FY23, the company’s consolidated total revenue more-than-doubled or up 115 per cent year-on-year (YoY) to Rs 15,509 crore against Rs 7,213 crore in Q1FY22.

This increase in revenue was aided by increase in PPA tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs, and higher prior period revenue recognition, Adani Power said.

Earnings before interest, taxes, depreciation, and amortization (ebitda) jumped 227 per cent YoY at Rs 7,506 crore. The growth was aided by prior period income recognition, improved tariff realisation, and change in sales mix, partially offset by impact of higher fuel cost, increased operating expenses owing to acquisition of Mahan Energen, unfavourable foreign exchange movement, etc.

A nation-wide heatwave and broadening of the recovery in economic activity continued to drive electricity demand growth in the first quarter of FY 2022-23. Aggregate energy demand for Q1FY23 was 404.8 Billion Units (BU), registering a growth of 18.6 per cent over the energy demand for Q1FY22, the company said.

During Q1FY23, Adani Power, along with the power plants of its subsidiaries achieved an average plant load factor (PLF) of 58.6 per cent and aggregate sales volumes of 16.3 BU on an installed base of 13,650 MW. In comparison, during Q1FY22, the company’s and its subsidiaries had achieved an average PLF of 64.8 per cent and sales volume of 16.2 BU on an installed base of 12,450 MW.

Operating performance during the quarter was affected due to high import coal prices which impacted the performance of Mundra and Udupi, while volumes at Raipur and Raigarh were lower due to domestic coal shortage. This was partially offset by improved volumes due to high demand for power at Tiroda and Kawai, and inclusion of operating performance of the newly acquired Mahan plant, the company said.