Adani Power hits 52-week high post Q2 results; stock soars 45% in one week

The stock hit a 52-week high of Rs 47.85, more than doubled from Rs 23.85 as on September 28, 2018, against 5% decline in the Sensex.

Shares of Adani Power hit a 52-week high of Rs 47.85 per share, up 4% on the BSE, after Adani Group company posted 22% year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 3.87 billion in September quarter.

It had posted a profit of Rs 3.17 billion in the same quarter last year. The electric utility company had a net loss of Rs 8.25 billion in the previous quarter.

The company’s consolidated total income grew 19% Y-o-Y to Rs 76.57 billion mainly due to additional revenue recognition on account of change in law compensation for domestic coal shortfall.

The average plant load factor (PLF) achieved during Q2FY19 was 65%, higher as compared to 63% achieved in Q2FY9. This growth was on account of better coal availability and strong demand from DISCOMs.

In past one week, Adani Power has soared 45% from Rs 33, the Supreme Court permitting the Gujarat Government to approach the Central Electricity Regulatory Commission (CERC) for implementation of recommendations made by the High Power Committee. In comparison, the S&P BSE Sensex was up 2% during the week.

Since October, the stock price more than doubled from Rs 23.85 as on September 28, 2018, against 5% decline in the benchmark index.

Commenting on the results, Gautam Adani, Chairman, Adani Power said, "We are pleased to note the progress in ensuring sustainable operations of the Mundra power plant, with the Hon'ble Supreme Court permitting the Gujarat Government to approach the CERC for implementation of recommendations made by the High Power Committee.

"We have also received other important Regulatory and judicial approvals for compensation claims of our projects at Tiroda and Kawai. With the quick ramp-up of coal supplies under SHAKTI, we firmly believe that these developments will help the plants achieve cash flow certainty and improvement in long-term profitability. We remain committed to our goal of catering to India's growing power demand and contributing significantly to its economic growth."

At 12:34 PM; the stock was trading 3% higher at Rs 47.45, as compared to 0.28% decline in the S&P BSE Sensex. A combined 34.83 million equity shares changed hands on the counter on the BSE and NSE so far.