Adani Power has reported disappointing numbers for the third quarter.
Net sales (standalone) declined to Rs 1,059.45 crore in the third quarter ending December 2011 against Rs 1,072.44 crore in the corresponding quarter of last fiscal (year-on-year). The company reported a loss of Rs 358.12 crore in Q3 FY12 against a profit of Rs 177.48 crore in Q3 FY11.
A poll of brokers conducted by NDTV Profit had expected sales at Rs 1,221 crore and profit after tax at Rs 211.6 crore.
Shares of Adani Power traded near the day's low, falling over 1 per cent on the National Stock Exchange (NSE). The stock traded with gains before earnings were announced. The Nifty index traded 0.65 per cent higher at 1345 hours.
The company attributed rising coal prices as the sole reason behind the quarterly losses.
"Coal costs have moved up substantially... According to the new Indonesian rule we cannot import coal at original price...so, we had to import from Indonesia at a higher cost and hence we had to incur additional cost," Prabal Banerji, CFO of Adani Power Ltd said today.
"Per unit coal cost has moved up to Rs 2.44, substantially impacting on profit of the company," he added.
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