Adani Power, a prominent player in India’s power sector, has reported a remarkable surge in its consolidated net profit for the third quarter of the fiscal year 2023-24. The company’s financial results reveal a multi-fold increase, reaching Rs 2,738 crore, compared to the Rs 9 crore recorded in the same quarter of the previous year.
This significant growth can be attributed to higher revenues, with the total income rising from Rs 8,290 crore to Rs 13,355 crore during the said period.
According to Adani Power CEO S B Khyalia, the company’s strategic positioning of power plants, efficient capacity allocation, and excellence in fuel management have contributed to addressing the escalating power demand in India.
Additionally, the optimal balance between Power Purchase Agreements (PPAs) and merchant capacities has bolstered profitability, leading to improved liquidity. This enhanced financial position has allowed Adani Power to proactively reduce its debt.
The ongoing brownfield capacity expansion at Mahan, totaling 1,600 MW, remains on track, reflecting the company’s commitment to meeting growing energy needs. Khyalia also emphasized Adani Power’s pursuit of inorganic growth to further extend its leadership in the sector.
During the third quarter of FY 2023-24, increased volumes from power plants in Mundra, Udupi, Raipur, and Mahan, along with the addition of the Godda power plant, significantly contributed to higher sales. The Godda power plant has rapidly become a crucial part of Bangladesh’s power supply ecosystem.
Domestic power sales volumes were buoyed by the rising power demand in India, supported by favorable pricing of imported coal and alternate fuels. The reported revenues for Q3 FY 2023-24 include a one-time net derecognition of prior period items, while the previous year’s Q3 revenues involved recognition of one-time prior period items.
Adani Power’s electricity sales surged to 21.5 billion units in Q3, up from 11.8 billion units in the corresponding period of the previous year. Notably, finance costs for the October-December period of 2023-24 decreased, mainly attributed to a reduction in secured and unsecured debt over the past year. However, this was partially offset by higher borrowing costs associated with the Godda power plant.
The cumulative net profit for the nine months ending December 2023 stood at Rs. 18,092 Crore, marking a remarkable 230% increase compared to the same period in the previous fiscal year. This impressive performance was further bolstered by the recognition of deferred tax assets amounting to Rs. 858 Crore.
As the largest private thermal power producer in India, Adani Power, a part of the Adani Group, maintains an installed thermal power capacity of 15,210 MW across various states, showcasing its pivotal role in shaping the nation’s energy landscape.