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ICICI Securities Report
Power demand recovered significantly in Q2 FY21 resulting in improved thermal plant load factors and subsequently higher offtake from Coal India Ltd.
H1 FY21 generation was lower, only 8.7% YoY (versus -16.4% in Q1 FY21) and thermal PLFs improved 300 basis points from Q1 FY21 to 49.6%.
Peak demand reached 176.6 GigaWatt on Sept. 18, 2020 (lower only 3.9% from FY20 levels of 183.8 GW).
This resulted in higher coal offtake with Coal India registering 9.6% YoY growth in Q2 FY21.
Opening up of the economy helped improve collections for discoms and further disbursal through Power Finance Corporation Ltd./Rural Electrification Corp. scheme is expected to ease the receivables situation in coming months.
This, combined with two other eagerly awaited developments – passing of Electricity Amendment Act and National Tariff Policy – are expected to result in sector rerating.
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