Capitaline

Operating profit margin has jumped from 18.93% to 35.76%, leading to 216.07% rise in operating profit to Rs 4,645.34 crore. Purchase of finished goods cost rose from 0.38% to 0.53%. Employee cost decreased from 1.83% to 1.16%. Other expenses fell from 78.86% to 62.55%. Power and Oil fuel cost fell from 71.26% to 58.11%. Other direct service cost fell from 1.42% to 0.76%. Other income fell 30.80% to Rs 363.83 crore. PBIDT rose 151.02% to Rs 5009.17 crore. Provision for interest fell 15.80% to Rs 796.56 crore. PBDT rose 301.37% to Rs 4212.61 crore. Provision for depreciation rose 19.65% to Rs 1002.23 crore.

Growth in Continuing EBITDA for Q3 FY 2023-24 was mainly a result of a lower increase in fuel cost as compared to growth in revenues, primarily due to lower import fuel prices and alternate fuel costs, addition of capacity charges recovery under the Godda PPA, and higher contribution from merchant sales due to higher tariffs.

Finance Costs for Q3 FY 2023-24 reduced to Rs. 797 Crore from Rs. 946 Crore in Q3 FY 2022-23, mainly due to reduction in secured and unsecured debt over the past year, partly offset by higher borrowing cost for the Godda power plant. Depreciation charge for Q3 FY 2023-24 increased to Rs. 1,002 Crore from Rs. 838 Crore in Q3 FY 2022-23 due to the addition of the Godda power plant.

Profit before tax grew 1,415.04% to Rs 3,210.38 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 472.42 crore, compared to Rs 203.13 crore. Effective tax rate was 14.72% compared to 95.86%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 31,119.60% to Rs 2,737.96 crore.

Sales of PowerPower Generation and related activities segment has gone up 67.76% to Rs 12,989.82 crore (accounting for 99.99% of total sales). Sales of Trading, investment and other activities segment fell 92.41% to Rs 1.62 crore (accounting for 0.01% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 1,415.04% to Rs 3,210.38 crore. PBIT of PowerPower Generation and related activities segment rose 1,394.55% to Rs 3,212.83 crore (accounting for 100.08% of total PBIT). PBIT of Trading, investment and other activities segment rose 20.20% to Rs -2.45 crore (accounting for -0.08% of total PBIT).
PBIT margin of PowerPower Generation and related activities segment rose from 2.78% to 24.73%. PBIT margin of Trading, investment and other activities segment fell from negative 14.39% to negative 151.23%. Overall PBIT margin rose from 2.73% to 24.71%.

For year-to-date (YTD) results analysis.

Consolidated net sales (including other operating income) of Adani Power for 9mFY24 has increased 29.64% to Rs 36987.56 crore. The increase in Continuing Operational Revenues for 9M FY 2023-24 was a result of higher sales volumes including addition of sales under the Godda PPA, and higher merchant sales. While merchant tariffs realized were higher as compared to the corresponding periods of FY 2022-23 due to improved power demand, blended tariffs under domestic PPAs were lower due to lower import fuel prices and alternate fuel costs. Similarly, Reported revenues for 9M FY 2023-24 of Rs. 46,400 Crore include recognition of one-time prior period items of Rs. 9,227 Crore on account of domestic coal shortfall, carrying cost, and late payment surcharge, as compared to one-time prior period recognition of this nature of Rs. 5,641 Crore for 9M FY 2022-23.

Sales of PowerPower Generation and related activities segment has gone up 29.98% to Rs 36,943.12 crore (accounting for 99.88% of total sales). Sales of Trading, investment and other activities segment fell 58.87% to Rs 44.44 crore (accounting for 0.12% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 154.30% to Rs 17,233.57 crore. PBIT of PowerPower Generation and related activities segment rose 154.77% to Rs 17,229.86 crore (accounting for 99.98% of total PBIT). PBIT of Trading, investment and other activities segment fell 73.73% to Rs 3.71 crore (accounting for 0.02% of total PBIT).

PBIT margin of PowerPower Generation and related activities segment rose from 23.79% to 46.64%. PBIT margin of Trading, investment and other activities segment fell from 13.07% to 8.35%. Overall PBIT margin rose from 23.75% to 46.59%.

Operating profit margin has jumped from 28.52% to 36.04%, leading to 63.83% rise in operating profit to Rs 13,330.96 crore. Purchase of finished goods cost fell from 0.54% to 0.33%. Employee cost decreased from 1.48% to 1.23%. Other expenses fell from 69.46% to 62.40%. Power and Oil fuel cost fell from 62.86% to 56.97%. Other direct service cost fell from 1.29% to 1.00%.

Other income rose 153.43% to Rs 9412.4 crore. PBIDT rose 91.91% to Rs 22743.36 crore. Provision for interest fell 0.73% to Rs 2568.49 crore.

PBDT rose 117.78% to Rs 20174.87 crore. Provision for depreciation rose 18.28% to Rs 2941.3 crore.

The Continuing EBITDA for 9M FY 2023-24 also stood higher due to similar reasons.

Similarly, the Depreciation charge for 9M FY 2023-24 increased to Rs. 2,941 Crore from Rs. 2,487 Crore in 9M FY 2022-23. Finance Costs for 9M FY 2023- 24 reduced marginally to Rs. 2,568 Crore from Rs. 2,588 Crore in 9M FY 2022-23 due to similar reasons.

Profit before tax grew 154.30% to Rs 17,233.57 crore. Share of profit/loss were nil in both the periods. Provision for tax was credit of Rs 857.98 crore, compared to debit of Rs 1292.82 crore. Effective tax rate was negative 4.98% compared to 19.08%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 229.89% to Rs 18,091.55 crore.

Promoters’ stake was 71.75% as of 31 December 2023 ,compared to 74.97% as of 31 December 2022 . Promoters pledged stake was 15.85% as of 31 December 2023 ,compared to 25.01% as of 31 December 2022 .

Management Comments :

Commenting on the quarterly results, Mr. S B Khyalia, CEO, Adani Power Limited, said, "Adani Power continues to demonstrate its leadership across domains by achieving everhigher standards of excellence, as evidenced by the financial results for the third quarter of FY 2023-24. The Company’s strategically located power plants and optimal capacity allocation between PPAs and merchant capacities, coupled with its strength in fuel management & logistics and excellence in power plant O&M, have allowed it to address growing power demand and generate robust profitability. This has resulted in improved liquidity, which has in turn been utilized to reduce debt. The ongoing brownfield capacity expansion of 1,600 MW at Mahan is on track, while we are moving ahead to extend our leadership further inorganically. We are excited to be a part of nation-building efforts through provision of reliable electricity supply from our highly efficient power plants while keeping sustainability goals at the forefront of our agenda.”

Other key developments

The operating performance for Q3 FY 2023-24 includes the 1,600 MW Godda Ultrasupercritical thermal power plant of APL’s subsidiary Adani Power (Jharkhand) Limited (APJL), which was commissioned in Q1 FY 2023-24. During the third quarter as well as the nine months period of FY 2023-24 ended 31st December 2023, higher volumes were contributed by the Mundra, Udupi, Raipur, and Mahan plants apart from the incremental contribution of the Godda power plant, which has quickly become an important part of the power supply ecosystem of Bangladesh. Domestic power sales volumes were driven by growing power demand across India, and offtake under Power Purchase Agreements (“PPAs”) was further supported by falling prices of imported coal and alternate fuel.

Adani Power : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202312	202212	Var.(%)	202312	202212	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	12,991.44	7,764.41	67.32	36,987.56	28,531.24	29.64	38,773.30	27,711.18	39.92
OPM (%)	35.76	18.93	1,683 bps	36.04	28.52	752 bps	25.91	35.42	-951 bps
OP	4,645.34	1,469.73	216.07	13,330.96	8,137.25	63.83	10,044.66	9,814.16	2.35
Other Inc.	363.83	525.80	-30.80	9,412.40	3,713.96	153.43	4,267.22	3,975.29	7.34
PBIDT	5,009.17	1,995.53	151.02	22,743.36	11,851.21	91.91	14,311.88	13,789.45	3.79
Interest	796.56	945.98	-15.80	2,568.49	2,587.50	-0.73	3,333.50	4,094.78	-18.59
PBDT	4,212.61	1,049.55	301.37	20,174.87	9,263.71	117.78	10,978.38	9,694.67	13.24
Depreciation	1002.23	837.65	19.65	2941.3	2486.73	18.28	3303.68	3117.54	5.97
PBT	3,210.38	211.90	1,415.04	17233.57	6776.98	154.30	7674.7	6577.13	16.69
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	3210.38	211.9	1,415.04	17233.57	6776.98	154.30	7674.7	6577.13	16.69
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	3210.38	211.9	1,415.04	17233.57	6776.98	154.30	7674.7	6577.13	16.69
Taxation	472.42	203.13	132.57	-857.98	1292.82	LP	-3051.94	1665.55	LP
PAT	2737.96	8.77	31,119.60	18091.55	5484.16	229.89	10726.64	4911.58	118.39
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	2737.96	8.77	31,119.60	18091.55	5484.16	229.89	10726.64	4911.58	118.39
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	2737.96	8.77	31,119.60	18091.55	5484.16	229.89	10726.64	4911.58	118.39
EPS (Rs)*	7.10	0.02	31,119.60	46.91	14.22	229.89	27.81	12.73	118.39

* EPS is on current equity of Rs 3,856.94 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Adani Power : Consolidated Segment Results

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	Quarter ended				Year to Date				Year ended
	% of (Total)	202312	202212	Var.(%)	% of (Total)	202312	202212	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
PowerPower Generation and related activities	99.99	12,989.82	7,743.08	67.76	99.88	36,943.12	28,423.19	29.98	97.74	37,895.85	27,221.78	39.21
Shipping	0.00	0.00	0.00	-
Trading, investment and other activities	0.01	1.62	21.33	-92.41	0.12	44.44	108.05	-58.87	2.26	877.45	489.40	79.29
Total Reported Sales	100.00	12,991.44	7,764.41	67.32	100.00	36,987.56	28,531.24	29.64	100.00	38,773.30	27,711.18	39.92
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00		0.00	0.00	-
Net Sales	100.00	12,991.44	7,764.41	67.32	100.00	36,987.56	28,531.24	29.64	100.00	38,773.30	27,711.18	39.92
PBIT
PowerPower Generation and related activities	100.08	3,212.83	214.97	1,394.55	99.98	17,229.86	6,762.86	154.77	90.65	6,957.13	6,571.37	5.87
Shipping	0.00	0.00	0.00	-
Trading, investment and other activities	-0.08	-2.45	-3.07	20.20	0.02	3.71	14.12	-73.73	9.35	717.57	5.76	12,357.80
Total PBIT	100.00	3,210.38	211.90	1,415.04	100.00	17,233.57	6,776.98	154.30	100.00	7,674.70	6,577.13	16.69
Less : Interest		0.00	0.00	-		0.00	0.00	-		0.00	0.00	-
Add: Other un-allcoable		0.00	0.00	-		0.00	0.00	-		0.00	0.00	-
PBIT Margin(%)
PowerPower Generation and related activities		24.73	2.78	2,195.72		46.64	23.79	2,284.54		18.36	24.14	-578.16
Shipping		0.00	0.00	0.00
Trading, investment and other activities		-151.23	-14.39	-13,684.17		8.35	13.07	-471.97		81.78	1.18	8,060.21
PBT	100.00	3,210.38	211.90	1,415.04	100.00	17,233.57	6,776.98	154.30	100.00	7,674.70	6,577.13	16.69