Adani Power Net jumps multiples to ₹4,645 cr. in the March quarter


Adani Power’s consolidated net income increased multiple to ₹4,645.47 billion in the March quarter from ₹13.13 billion in the same period last year, mainly due to higher revenues.

The company’s total revenue rose 93% to £13,308 billion in the March quarter, up from £6,902 billion in the same period last year, a company statement said on Thursday.

“Revenue for Q4 FY 2021-22 includes income from operations from prior periods of GBP 2,946 crore and other income from prior periods of Rs 1,982 crore,” read the statement.

EBITDA for Q4 FY 2021-22 recorded a multiple increase to £7,942 billion compared to £2,143 billion in Q4 FY 2020-21.

“EBITDA growth was supported by the recognition of earnings from prior periods, larger shortfall receivables due to high imported coal prices, and higher trading and short-term tariffs and volumes compared to the fourth quarter of fiscal 2020-21,” the statement added.

Consolidated net profit for 2021-22 increased to £4,911.58m from £1,269.98m in 2020-21.

In the most recent fiscal year, the company’s total revenues increased to ₹31,686.47 billion from ₹28,149.68 billion in the same period last year.

The company said that power demand in India continues to grow strongly, owing to both economic growth and the heatwave in the northwestern parts of the country.

In addition, recent geopolitical events in Europe have caused global fuel prices, including coal, oil and natural gas, to rise sharply.

The total nationwide energy demand for 2021-22 was 1,380 billion units (BU), representing an 8.2% growth over the energy demand for FY2020-21. Similarly, peak power demand saw 6.7% growth, reaching a record level of 203 GW in 2021-22 compared to FY2020-21.

The peak power deficit increased to 1.2% in 2021-22 compared to 0.4% in 2020-21, while the energy deficit remained constant at 0.4%.

This in turn has affected the ability of a number of thermal power stations in India to generate electricity at a reasonable cost and limited their output.

As a result of supply bottlenecks due to growing demand for electricity, the average market clearing price (selling price) for electricity on the exchanges rose to ₹8.23/kWh on the day-ahead market in March 2022.

Gautam Adani, Chairman of the Adani Group, said that the availability of reliable power supply to various sectors across the country is vital for economic growth.

“The Adani Group is committed to meeting India’s energy needs in a sustainable, reliable and affordable manner. Our diversified presence across the energy value chain helps us ensure that this vital input is always available to power the economy, even during times of global volatility, and helps advance the vision of progress and prosperity for all,” he said .

Anil Sardana, Adani Power’s Managing Director, said that “over the coming years, we will focus on making the most of our fleet while managing our acquisitions and greenfield assets to become value-added investments.”

“Recent developments on the regulatory front have also removed… long-standing uncertainty, which will significantly help improve our liquidity position,” he added.

On March 16, 2022, the Company completed the acquisition of Essar Power MP Limited (EPMPL), a company in liquidation under the Insolvency and Bankruptcy Act. EPMPL’s name was subsequently changed to Mahan Energen Ltd. (MEL) changed.

The installed thermal power generation capacity of APL has increased to 13,610 MW after the takeover of MEL.

In Q4 2021-22 (March Quarter), APL, together with its subsidiaries’ power plants, achieved an average plant load factor [PLF or capacity utilisation] of 52.1% and a total sales volume of 13.1 billion units [BU].

In comparison, APL and its subsidiaries achieved an average PLF of 59.6% and sales volume of 14.8 BU in the fourth quarter of fiscal 2020-21.

Operating performance during the quarter (in the report) was impacted by high imported coal prices and plant overhauls, partially offset by improved volumes due to high power demand, it said.

During the year ended March 31, 2022, APL, together with its subsidiaries’ power plants, achieved an average PLF of 51.5% and a total sales volume of 52.1 BU.

In comparison, APL and its subsidiaries achieved a PLF of 58.9% and sales volume of 59.3 BU for the fiscal year ended March 31, 2021, it said.

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