• Lower sale for the quarter was due to lower PLF and billed availability. Overall billed availability during quarter ended June 2018 was lower at 42% compared to 70% in corresponding previous period. The average PLF for the quarter was lower at 38% compared to 63% in corresponding previous period. Drop in PLF was on account of lower domestic coal availability at Tiroda and Kawai, as well as commercial shutdown due to high imported coal prices.

• Revenue from operations for the quarter include an income of Rs 524.72 crore (net) for the period upto March 31,2018 recognized based on the notifications and orders received during the quarter from various regulatory authorities such as RERC and CERC relating to various claims including cost escalation/de-escalation claims of subsidiary companies. Similarly revenue from operations include – Rs 44.70 crore for the quarter (compared to Rs 36.23 crore in quarter ended June 2017) an expected relief on account of Force majeure events by APML, a subsidiary company based on the orders of MERC dated May 5, 2014 to compensate APML for losses suffered due to non allotment of Lohara coal block/non-availability of coal linkages.

• Expansion in operating profit margin to the tune of 210 bps to 30.3% is largely due to lower fuel cost. While fuel cost was lower by 620 bps to 55.2%, the power purchase cost, staff cost and OE was up by 20 bps (to 1.7%), 60 bps (to 2.4%) and 320 bps (to 10.4%) respectively.

• Other income was up by 124% to Rs 129.72 crore. Other income for the quarter includes Rs 50 crore pertain to interim claim received from the insurance company towards business interruptions loss incurred in UPCL. The interest cost was down by 3% to Rs 1362.29 crore. And the depreciation was up by 2% to Rs 679.31 crore. Thus the loss at PBT was down by Rs 753.12 crore compared to Rs 453.98 crore of loss in the corresponding previous period. EO income for the quarter and corresponding previous period was nil. Thus the PBT after EO level was a loss of Rs 753.12 crore compared to a loss of Rs 453.98 crore in the corresponding previous period.

• Taxation for the quarter being a provision of Rs 72.03 crore compared to a write back of Rs 1.14 crore in the corresponding previous period. Thus at PAT level it was a loss of Rs 825.15 crore compared to a loss of Rs 452.84 crore in the corresponding previous period.

• Share of profit from JV as well as minority interest was nil for the quarter as well as corresponding previous period. Other comprehensive income net of tax was up by 15% to Rs 1.14 crore. Thus the total comprehensive income was a loss of Rs 824.01 crore compared to a loss of Rs 451.85 crore in the corresponding previous period.

Management Comment

Gautam Adani, Chairman of Adani Power, commenting on the financial performance has said, "The Government's commendable efforts in providing power connectivity to each household under the SAUBHAGYA Scheme and 100% village electrification will help the power sector by expanding the addressable market, and growing base demand. Meeting this demand will require timely assurance of key enablers, such as domestic fuel availability, power off-take by DISCOMs, and distribution reforms through focused action. We are enthused by rapid progress in regulatory outcomes that will help us get compensated for increase in the cost of generation. With the constitution of the High Powered Committee by the Government of Gujarat, we are hopeful of finding a lasting and sustainable solution to the cost under-recovery issue of the Mundra power plant soon."

Vineet Jain, CEO of the company said, "Sustained economic growth continues to drive electricity demand in India as well as significant changes in the Power sector. We are confident of improving PLFs owing to improved availability of domestic coal. With the constitution of the High Powered Committee, we are confident of determining a sustainable roadmap to profitability for the Mundra power plant."