Adani Power surpasses NTPC in m-cap ranking; zooms 318% thus far in 2022

In the past one month, the stock price of Adani Power has appreciated by 41 per cent, as compared to 6 per cent gain in the market price of NTPC. The S&P BSE Sensex, meanwhile, rallied 10 per cent

Adani Power surpassed the state-owned electric utilities company NTPC in terms of market capitalistaion (market-cap) after a sharp rally in the share price of Gautam Adani-led Group company.

At 09:38 AM, Adani Power stood at 35th position with an m-cap of Rs 160,4291 crore, while NTPC stood at 37th spot in the overall ranking with a market-cap of Rs 154,710 crore, BSE data shows. Adani Power also surpassed automobile company Mahindra & Mahindra (M&M), which has an m-cap of Rs 156,394 crore, data shows.

In the past one month, the stock price of Adani Power has appreciated by 41 per cent, as compared to 6 per cent gain in the market price of NTPC. The benchmark S&P BSE Sensex, meanwhile, rallied 10 per cent.

Thus far in the calendar year 2022 (CY22), Adani Power has outperformed the market by zooming 318 per cent, as compared to 30 per cent rise recorded by NTPC. In comparison, the S&P BSE Sensex was up 1.9 per cent during the period.

Adani Power 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 Q1FY23, the company's consolidated total revenue more-than-doubled or was up 115 per cent year-on-year (YoY) to Rs 15,509 crore as 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 number of reforms undertaken by the Indian government have strengthened the Indian power sector. These comprise fuel linkages under the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) and the Ujwal DISCOMS Assurance Yojana (UDAY) to catalyse the transformation of power distribution companies, Adani Power said in FY22 annual report.

The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural electrification and Pradhan Mantri Har Ghar Sahaj Bijli Yojana (Saubhagya). The complement of these initiatives has been directed to enhance electricity availability to the last person through a widening network and policies directed to enhance the viability of distribution companies, the company said.

Adani Power further said that the availability of reliable and economic power supply is a major driver of comprehensive growth. It is an essential factor for improvement in the human development index and industrial growth.

Power demand in India is expected to witness sustainable growth owing to the government’s thrust on Make-in-India, growth in disposable incomes and standard of living as well as growing industrialization. India’s peak electricity demand is expected to be around 340 GW by 2030 compared to a peak demand of 203 GW in 2021 as per the Central Electricity Authority (CEA), the company said.