Adani Power Q3 Results: Profit Rises On Higher Operating Margin

The net profit of billionaire Gautam Adani-led independent power producer rose to Rs 2,738 crore in the quarter ended December 2023.

<div class="paragraphs"><p>Image used for&nbsp;representational purposes (Source: Adani Power website)</p></div>
Image used for representational purposes (Source: Adani Power website)

Adani Power Ltd.'s net profit for the third quarter of fiscal 2024 rose on higher operating margin and sales.

The net profit of the billionaire Gautam Adani-led independent power producer increased to Rs 2,738 crore in the quarter ended December 2023, according to its exchange filing. This compares with the Rs 8.8-crore net profit over the same period last year.

Adani Power Q3 FY24 Highlights (Consolidated, YoY)

  • Revenue from operations rose 67.3% to Rs 12,991.4 crore.

  • Operating profit or Ebitda grew threefold to Rs 4,645.3 crore from Rs 1,469.7 crore.

  • Ebitda margin expanded 1,682 bps to 35.75% vs 18.92% a year ago.

For an installed power capacity of 15,250 MW in Q3 FY24, the plant load factor rose to 68.6%, as compared with 42.1% a year ago. Total power sold during the quarter also nearly doubled to 21.5 billion units, as compared with 11.8 billion units a year ago.

Higher production and sales volume, in Q3 and 9M FY24, were contributed by the Mundra, Udupi, Raipur, and Mahan power plants apart from the incremental contribution of the Godda power plant, which has quickly become an important part of the power supply ecosystem of Bangladesh, the company said.

Domestic power sales volume were driven by growing power demand across India, and offtake under the power purchase agreements. It was further supported by falling prices of imported coal and alternate fuels.

While merchant tariffs realised during the quarter were higher as compared with the corresponding period of FY23 due to improved power demand, blended tariffs under domestic PPAs were lower due to fall in import fuel prices and alternate fuel costs.

Finance costs for the December quarter fell to Rs 797 crore from Rs 946 crore in the same quarter last year, on account of reduction in secured and unsecured debt over the past year. However, it was partly offset by higher borrowing cost for the Godda power plant, the company said.

Shares of Adani Power were up 4.40%, as compared with a 0.51% drop in the benchmark Sensex on Thursday.

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