Adani Power Q3 Results: Profit Sinks On Lower Margin, Higher Tax Expense

Adani Power's Q3 tax expense came at Rs 194 crore against a credit of Rs 13 crore a year earlier.

<div class="paragraphs"><p>(Source: Adani Power website)</p></div>
(Source: Adani Power website)

Adani Power Ltd.'s consolidated net profit for the third quarter fell on lower operating margin and higher tax expenses.

The consolidated net profit of the independent power producer fell around 96% year-on-year to Rs 8.77 crore, according to its exchange filing, as operating margin declined and tax expenses rose during the quarter.

Tax expense in the quarter ended December 2022 was Rs 194 crore as against a credit of Rs 13 crore a year earlier.

Adani Power Q3 FY23 Highlights (YoY)

  • The revenue from operations rose 44.83% YoY to Rs 7,764.4 crore on the back of higher regulatory income, increased operating capacity, improved tariff realisation under long-term power purchase agreements, and revival of 1,234 MW Bid-2 PPA with Gujarat discoms in March 2022, the company said.

  • Ebitda, or operating profit. for the quarter dropped 17% YoY to Rs 1469.73 crore on higher cost of fuel consumed to generate electricity.

  • Ebitda margin fell 141 basis points to 18.93%.

It quarterly results includes the performance from Mahan Energen Ltd.'s 1,200 MW power plant, which was acquired in March 2022, the company said.

Anil Sardana, managing director of Adani Power, said, that the company’s skills in project execution, excellence in power plant operations, and capabilities in fuel and logistics management have helped them turn around stressed power assets acquired under schemes of corporate debt resolution, apart from setting various benchmarks in its greenfield power plants.

“With resolution of most of its regulatory issues now, the company is well-placed in terms of liquidity to meet its present commitments and growth requirements.”

According to Sardana, with the strategically located and efficient power plants, the company can take maximum advantage from India’s growing power demand and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.