25, February, 2024
HomeBusinessAdani Power's Remarkable Q2 Earnings: Net Profit Surges 800% on Tax Credit

Adani Power’s Remarkable Q2 Earnings: Net Profit Surges 800% on Tax Credit

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Adani Power made headlines with its impressive Q2FY24 earnings, reporting a consolidated net profit of Rs 6,594 crore. This remarkable figure represents an extraordinary 848% increase from the previous year’s Q2 earnings of Rs 696 crore. The surge in profit was largely attributed to a substantial one-time tax credit of Rs 1,371 crore.

Read Also | Infosys Q2 2023 Financial Results: What to Expect

The company’s Q2 revenue from operations also displayed significant growth, reaching Rs 12,990.58 crore, marking an 84.42% increase from Rs 7,043.77 crore in the same quarter of the previous year. Notably, this revenue includes one-time prior period items totaling Rs 1,125 crore, associated with domestic coal shortfalls.

Adani Power attributed this impressive financial performance to increased sales volumes, including contributions from the Godda power plant, and higher merchant sales. Additionally, lower import coal prices facilitated greater power offtake under import coal-based Power Purchase Agreements (PPAs) of Mundra and Udupi plants. These PPAs operate under approved regulatory processes and are linked to international coal prices.

The company also reported significant other income of Rs 1,945 crore for the quarter. This income includes one-time prior period items amounting to Rs 1,656 crore, attributed to carrying costs and late payment surcharges.

Read Also | Q2 Earnings Season Underway: Mixed Results for Tech Mahindra, Axis Bank, Jubilant Foodworks, and Others

Following the announcement of these robust earnings, Adani Power’s share price surged nearly 7%, reaching Rs 390.40 on the Bombay Stock Exchange (BSE). This substantial growth underscores the company’s strong financial performance and the positive market response to its Q2 results.

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