Adani Power trips after reverse turnaround in Q1

Adani Power fell 1.26% to Rs 43.10 at 14:10 IST on BSE after the company reported a net loss of Rs 793 crore in Q1 June 2012, compared with net profit of Rs 176.85 crore in Q1 June 2011.

The company announced the results during trading hours today, 1 August 2012.

Meanwhile, the BSE Sensex was down 9.36 points or 0.05% to 17,226.82.

The stock declined on high volumes. On BSE, 15.24 lakh shares were traded in the counter as against average daily volume of 6.34 lakh shares in the past two weeks.

The stock hit a high of Rs 44.55 and a low of Rs 42 so far during the day.

Adani Power attributed the reverse turnaround in Q1 June 2012 to higher imported coal prices and limited availability of transmission lines. The company's total income jumped jumped 79% to Rs 1464 crore in Q1 June 2012 over Q1 June 2011 due to increase in power generation capacity to 3,960 megawatts (MW) in Q1 June 2012 from 1,980 MW in Q1 June 2011.

Commenting on the financial performance of the company Mr. Gautam Adani, Chairman, Adani Power said: "Our power business has been impacted by reasons beyond our control such as the national issue of unavailability of domestic coal, high prices of imported coal and limited availability of transmission lines. While we are working with the concerned authorities to arrive at a solution, the Adani Group is very confident of its power generation business and is moving as per schedule to commission two power projects -- one at Tiroda and the other at Kawai this fiscal".

Adani Power said it expects to achieve expansion of power generation capacity from current 4,620 MW to nearly 10,000 MW by March 2013.

Adani Power is the largest private thermal power producer in India. It is currently developing six power projects for generating 16,500 MW of power across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. The company intends to generate 20,000 MW by 2020.

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