Consolidated net sales (including other operating income) of Adani Power for the quarter ended Jun 2022 has increased 108.91% to Rs 13723.06 crore.  This increase in revenue was aided by increase in PPA tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs, and higher prior period revenue recognition.

Revenue for Q1 FY 2022-23 includes recognition of prior period revenue from operations of Rs. 2,561 Crore, and prior period other income of Rs. 1,651 Crore primarily on account of various regulatory orders. The corresponding amounts of prior period revenue recognition for Q1 FY 2021-22 were Rs. 125 Crore and Rs. 532 Crore respectively.

Operating profit margin has jumped from 25.09% to 41.68%, leading to 247.07% rise in operating profit to Rs 5,719.74 crore.  Purchase of finished goods cost rose from 0.04% to 0.40%.   Employee cost decreased from 1.68% to 0.98%.   Other expenses fell from 73.20% to 56.94%.   Power and Oil fuel cost fell from 66.31% to 52.03%.   Other direct service cost fell from 2.44% to 1.05%.   Other income rose 177.17% to Rs 1785.94 crore.  PBIDT rose 227.42% to Rs 7505.68 crore.  

The EBITDA for Q1 FY 2022-23 stood higher by 227% at Rs. 7,506 Crore, as compared to Rs. 2,292 Crore in Q1 FY 2021-22. EBITDA growth was aided by prior period income recognition, improved tariff realisation, and change in sales mix, partially offset by impact of higher fuel cost, increased operating expenses owing to acquisition of Mahan Energen Ltd., unfavourable foreign exchange movement, etc.

Provision for interest fell 22.92% to Rs 823.43 crore.  PBDT rose 445.91% to Rs 6682.25 crore.  Provision for depreciation rose 5.39% to Rs 816.05 crore.  Profit before tax grew 1,204.44% to Rs 5,866.20 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 1086.34 crore, compared to Rs 171.49 crore.  Effective tax rate was 18.52% compared to 38.13%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 1,618.01% to Rs 4,779.86 crore.  

 

• Sales of Power Generation and related activities segment has gone up 108.45% to Rs 13,692.63 crore (accounting for 99.78% of total sales).  
• Profit before interest, tax and other unallocable items (PBIT) has jumped 1,133.40% to Rs 5,981.72 crore.  PBIT of Power Generation and related activities segment rose 1,131.17% to Rs 5,970.93 crore (accounting for 99.82% of total PBIT).  
• PBIT margin of Power Generation and related activities segment rose from 7.38% to 43.61%.  Overall PBIT margin rose from 7.38% to 43.59%. 

 

Management Comment

 

Commenting on the quarterly results of the Company, Anil Sardana, Managing Director, Adani Power Limited, said, "As the world goes through a period of increased uncertainty and hyperinflation in commodity prices caused by geopolitical conflict, India’s energy sector has also faced price-adversity. However, pragmatic policy decisions and abundant natural resources have shielded the economy from its worst impact. Adani Power Ltd. has been able to utilise the opportunities presented by the market situation effectively, leveraging its diversified fleet and operations-excellence to meet rising power demand. Regulatory issues that were outstanding since long are nearing full resolution, improving visibility and providing us liquidity to propel our drive to realise our long-term strategies and meet our stakeholder value aspirations duly keeping our utmost commitment to ESG aspects.”

 

Other development

Promoters’ stake was 74.97% as of 30 June 2022 ,compared to 74.97% as of 30 June 2021 .  Promoters pledged stake was 25.33% as of 30 June 2022 ,compared to 28.60% as of 30 June 2021.