Adani Power soars 25% in 7 days; nears 52-week high on strong Q2 results

In Q2FY24, Adani Power's consolidated continuing EBITDA were higher by 202% YoY at Rs 4,336 crore; due to greater sales volumes, lower fuel cost, and higher merchant tariffs.

Shares of Adani Power continued their upward march and were up 4.5 per cent at Rs 389.50 on the BSE in Friday’s intra-day trade after the company reported robust earnings, with profit after tax (PAT) for the quarter ended September 2023 (Q2FY24) up about 9.5 times at Rs 6,594 crore, on back of higher income.

The Adani Group integrated power utilities company had posted PAT of Rs 696 crore a year ago quarter. The higher net profit during the quarter was due to improved operational performance, higher one-time income, and recognition of deferred tax asset.

The stock price of Adani Power has zoomed 25 per cent in past seven trading days. It had hit a 52-week high of Rs 409.70 on September 12, 2023 and touched a record high of Rs 432.50 on August 22, 2022.

In Q2FY24, Adani Power’s consolidated continuing earnings before interest, taxes, depreciation, and amortization (EBITDA) were higher by 202 per cent year-on-year (YoY) at Rs 4,336 crore; due to greater sales volumes, lower fuel cost, and higher merchant tariffs.

Net sales for the quarter were at Rs 12,991 crore, up 84.4 per cent from the Rs 7,044 crore reported in the corresponding quarter in the previous year, mainly due to greater sales volumes. The company said consolidated power sale volume at 18.1 Billion Units (BU) in Q2 FY24, up by 65 per cent from 11 BU in Q2 FY23 due to improved power demand and higher operating capacity.

The operating performance for Q2FY24 includes the 1,600 MW Godda Ultra-supercritical thermal power plant of Adani Power’s subsidiary Adani Power (Jharkhand) Limited (APJL), which was commissioned in Q1F24. During the quarter, performance improved due to higher power offtake in Mundra, Udupi, Raipur, and Mahan plants apart from the incremental contribution of Godda, which has ramped up its operations satisfactorily in a short time after commissioning, the company said.

Adani Power has an installed thermal power capacity of 15,210 MW spread across eight power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, apart from a 40 MW solar power plant in Gujarat.