Adani Power drops after Q3 results

Adani Power lost 3.21% to Rs 33.20 at 14:52 IST on BSE after the company reported a consolidated net loss of Rs 545 crore in Q3 December 2013, lower than net loss of Rs 619.01 crore in Q3 December 2012.

The Q3 result was announced during trading hours today, 27 January 2014.

Meanwhile, the S&P BSE Sensex was down 425.56 points or 2.01% at 20,708.

On BSE, so far 5.39 lakh shares were traded in the counter as against average daily volume of 11.06 lakh shares in the past one quarter.

The stock hit a high of Rs 34.10 and a low of Rs 33 so far during the day. The stock had hit a record low of Rs 29.45 on 5 August 2013. The stock had hit a 52-week high of Rs 65.50 on 24 January 2013.

The stock had underperformed the market over the past one month till 24 January 2014, sliding 10.44% compared with the Sensex's 0.48% rise. The scrip had also underperformed the market in past one quarter, declining 3.24% as against Sensex's 1.97% rise.

The company has equity capital of Rs 2871.92 crore. Face value per share is Rs 10.

Adani Power's consolidated total income rose 120% to Rs 4240 crore in Q3 December 2013 over Q3 December 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) surged 180% to Rs 1017 crore in Q3 December 2013 over Q3 December 2012.

The consolidated net loss in Q3 December 2013 is due to higher imported coal cost due to limited availability of domestic coal and also non-cash charge of depreciation and provision for deferred tax, Adani Power said in a statement.

Commenting on the company's financial performance, Mr. Gautam Adani, Chairman, Adani Power said, "It is matter of pride that Mundra Power Plant has surpassed its installed capacity. The effective utilization of increased capacity coupled with implementation of various Government initiatives, we are confident and committed to meet the demand supply gap in electricity in India".

Mr. Vinod Bhandawat, CFO, Adani Power said, "The challenges of limited domestic coal availability and non-remunerative PPA prices continued to impact our financial performance. However, with increased operational capacity, improving operating efficiencies, implementation of policy initiatives like CERC guidelines on tariff revision, reforms on SEBs and rail infrastructure for coal transportation, we are confident of better performance in the ensuing quarters".

The company sold 11.2 billion units of power in Q3 December 2013 as against 6 billion units in Q3 December 2012.

Adani Power said that its plant load factor (PLF) improved to 75% in Q3 December 2013 as against 63% achieved in Q2 September 2013.

Adani Power said it expects to achieve thermal power generation capacity of 9,240 megawatts (MW) by FY 2014.

Adani Power is the largest private thermal power producer in India. It is currently developing six power projects across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh.

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