Led by revival in electricity demand, Vedanta recorded a 19 per cent rise in its commercial power sales during July-September quarter.
Total power sales from all generating units during the period stood at 3,514 million units (MUs) as against 2,950 MUs in the comparable period of last fiscal year.
Vedanta’s coal-fired generating unit at Jharsuguda of 600 Mw and Hindustan Zinc Ltd's (HZL) unit were the key drivers of power sales. The Jharsuguda power station logged 35 per cent year-on-year (y-o-y) growth in power sales in Q2FY19 after a tepid performance in the last fiscal year.
HZL’s power sales were up 29 per cent in the period under review, according to an investor presentation by Vedanta.
The company's revenue from power sales grew 20 per cent y-o-y, rising from Rs 14.31 billion to Rs 17.18 billion. Ebitda (earnings before interest, taxes, depreciation and amortization) improved 3 per cent to Rs 3.78 billion during Q2.
Total power generation capacity by Vedanta-owned units stands at 9,000 Mw. Of this, 5,100 Mw is meant for captive consumption and the rest for commercial sales.
Demand for electricity within the country is expected to increase at a CAGR (compounded annual growth rate) of 7 per cent to 1894.7 Tera-watt hour (TwH) over FY07 to FY22. A report by the Indian Brand Equity Foundation (IBEF), a trust formed by the Union commerce ministry, believes current production levels are not enough to meet the demand as annual demand outstrips supply by 7.5 per cent.