• Growth in revenue was due to improved PLFs, higher billed availability and better merchant realizations. Overall billed availability for the quarter was 80% as against 62% in corresponding previous period. Similarly the PLF was higher at 73% for the quarter compared to 58% in the corresponding previous period.

• Revenue from operations for the quarter include an income of Rs 18.29 (compared to a write back of Rs 23.47 crore in corresponding previous quarter) towards relief on account of Force Majeure events to compensate APML for losses suffered due to non allocation of Lohara Coal Block or non availability of coal linkage for 800 MW of power capacity. Further the revenue from operations include early period income (upto March 31, 2018) write back of Rs 20.07 crore based on the notifications and orders received from various regulatory authorities.

• Expansion in operating profit margin to the tune of 240 bps to 17% is largely due to fall in all cost heads barring fuel cost. While fuel cost was higher by 410 bps to 76.2%, the power purchase cost, staff cost and OE was down by 150 bps (to 0.3%), 50 bps (to 1.14%) and 470 bps (to 5.1%) respectively.

• Other income was up by 299% to Rs 286.78 crore. Higher other income was largely due to delayed payment interest of Rs 91.12 crore on change in law claims for Jan 2016-Oct 2018 period in APRL and Rs 125 crore of delayed payment interest accounted by APMuL for the period of March 2011-July 2018 on power supply from GUVNL. Thus the PBIDT was up by 77% to Rs 1372.45 crore.

• The interest cost was up by 8% to Rs 1530.76 crore and thus the PBDT was a loss of Rs 158.31 crore compared to a loss of Rs 634.29 crore in the corresponding previous period. And the depreciation was up by 1% to Rs 682.19 crore. Thus the loss at PBT was lower at Rs 840.50 crore compared to a loss of Rs 1307.24 crore 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 840.50 crore compared to a loss of Rs 1307.24 crore in the corresponding previous period.

• Taxation for the quarter being a provision of Rs 340.28 crore compared to a write back of Rs 3.77 crore in the corresponding previous period. Thus at PAT level it was a loss of Rs 1180.78 crore compared to a loss of Rs 1303.47 crore in the corresponding previous period.

• Share of profit from JV was nil for the quarter compared to a loss of Rs 10.27 crore in corresponding previous period. The minority interest was nil for the quarter as well as in corresponding previous period. Thus the net loss before OCI was down by 10% to Rs 1180.78 crore. With other comprehensive income down by 71% to Rs 0.80 crore, the net loss was down by 10% to Rs 1179.98 crore.

Nine month performance

Sales were higher by 5% to Rs 17391.55 crore but with OPM contract by 20 bps to 26.3%, the operating profit was up by 4% to Rs 4574.80 crore. After accounting for higher OI (up 132% to Rs 892.19 crore), the PBIDT was up by 14% to Rs 5466.99 crore. However hit by higher interest and depreciation cost the PBT was a loss of Rs 891.74 crore, a fall of 38%. After accounting for higher taxation the PAT was a loss of Rs 1619.04 crore compared to a loss of Rs 1439.43 crore in the corresponding previous period. Eventually the net loss was higher at Rs 1616.63 crore compared to a loss of Rs 1447.81 crore in the corresponding previous period.

Management Comment

Gautam Adani, Chairman of Adani Power, commenting on the financial performance has said, "We are witnessing rapid progress in the resolution of regulatory issues that have affected cash flows of our projects in the past. We hope to see timely approval of supplementary PPAs by the Hon'ble CERC, which will help the Mundra power plant to operate sustainably. We have also received a substantial amount of compensatory payments under Change in Law

for Domestic Coal Shortfall, for the Tiroda and Kawai plants. We continue to see a long term growth potential in the thermal power sector, which is bolstered by robust economic growth and the Government's fruitful efforts in addressing thechallenges faced by the sector. The Adani Group has established its end-to-end presence in the Indian power sector, and is firmly committed to playing a significant part in India's growth story".