The transfer of transmission line business of the Company and Adani Power Maharashtra (wholly owned subsidiary of the Company) into Adani Transmission (India) (wholly owned subsidiary of the Company), was effected consequent to the receipt all necessary approvals in pursuant to the Scheme of Arrangement ("Scheme") in nature of demerger approved by the Board of Directors at their meetings held on December 28, 2013, under Section 391 to 394 of the Companies Act, 1956 with an appointed date of March 31, 2014. Pursuant to the above, the figures for the quarter and year ended March 31, 2015, exclude the operations of the transmission business and hence, the figures are not comparable with corresponding quarter and year ended March 31, 2014. Subsequent to the approval of the Board of Directors and Shareholders, the Company has divested 90.91% equity investment held in Adani Transmission (India) (Subsidiary of the Company) to Adani Transmission (wholly owned subsidiary of Adani Enterprises) at an aggregating value of Rs 311.92 crore, determined on the basis of independent valuation report. Adani Transmission (India) ceased to be subsidiary of the company w.e.f. March 04, 2015.

• Electricity sold in volume during the quarter was 2% higher than corresponding previous period and the average unit realization for the quarter being high by 21% to Rs 3.87/unit. Despite this the fall in revenue to the extent of 22% is largely due to high base effect. Lower compensatory tariff for the quarter at Rs 368.27 crore as per APTEL/MERC/RERC order compared to Rs 1843.12 crore (including an amount of Rs 1013.37 crore for 2013-2014 period and Rs 829.75 crore for period upto March 2013) is the major reason for sharp fall in operational revenue for the quarter.

• Of the Rs 368.27 crore an amount of Rs 186.94 crore pertain to 1000MW PPA with GUVNL and 1424 MW PPA with Haryana Discom as the CERC order has been confirmed by APTEL in the appeal of GUVNL/Haryana Discom. Similarly compensatory tariff of Rs 363.17 crore (including additional compensatory tariff of Rs 137.07 crore) in favour of Adani Power Maharashtra by MERC. Balance amount of Rs 44.26 crore is compensatory tariff in favour of Adani Power Rajasthan by RERC.

• Operating profit margin contracted by sharp 2020 bps to 25.7% due to impact of lower compensatory tariff. Fuel cost as % of sales was higher by 1310 bps to 59.5%. Similarly the power purchase cost, staff cost and other expenditure was up by 370 bps (to 3.7%), 70 bps (to 2.1%) and 260 bps (to 8.9%) respectively. The forex loss was up by 10 bps to 0.1%. Thus the OP crashed by 56% to Rs 1197.90 crore.

• Other income was up by 155% to Rs 162.40 crore. The interest cost (net of MTM gain/loss on derivatives) was higher by 20% to Rs 1324.99 crore. MTM forex loss on derivative for the quarter stood at Rs 122.09 crore compared to a gain of Rs 112.54 crore in corresponding previous period. Depreciation was a write back of Rs 22.18 crore compared to a provision of Rs 579.67 crore in the corresponding previous period. During the quarter ended March 2015 the company revised the estimated useful life and residual value of the fixed assets in accordance with Schedule II of the companies Act 2013 except in case of power plant assets and thus the depreciation charged for the year ended March 2015 reduced by Rs 719.93 crore. Thus at PBT level it was a fall of 95% to Rs 57.49 crore. But with EO income stand higher at Rs 657.56 crore, the de-growth at PBT (after EO Income) moderated to 37% to Rs 715.05 crore. Exceptional items of Rs 435.92 crore for the year ended March 31, 2015, includes, profit on sale of Investment in Adani Transmission (India) of Rs 211.87 crore for the current quarter and profit on demerger of Transmission line business of Rs 224.05 crore.

• But with taxation for the quarter being nil and it was a write back of Rs 1400.59 crore in the corresponding previous quarter the PAT was lower by 72% to Rs 715.05 crore.

• The minority interest was nil for the quarter as well as corresponding previous period. And thus the Net-profit (after MI) was lower by 72% to Rs 715.05 crore.

Consoldiated yearly performance

Revenue was up by 24% to Rs 19544.94 crore and the OPM stand contracted by 160 bps to 29.9%. Thus the growth at operating profit moderated to 17% (to Rs 5836.48 crore). The other income stands higher by 4% to Rs 246.50 crore. While the interest cost was higher by 23% (to Rs 5369.16 crore) the depreciation was lower by 7% (to Rs 2060.62 crore) and thus at PBT level it was a loss of Rs 1346.80 crore compared to a loss of Rs 1369.54 crore in the corresponding previous period. EO income for the quarter was up at Rs 531.17 crore compared to nil in the corresponding previous period. Thus the loss at PBT (after EO) level was lower at Rs 845.63 crore compared to a loss of Rs 1369.54 crore in the corresponding previous period. Taxation for the period was nil compared to a write-back of Rs 1078.99 crore in the corresponding previous period. Thus the loss at PAT was Rs 845.63 crore compared to a loss of RS 290.55 crore in the corresponding previous period.

Management Comment

Gautam Adani, Chairman of Adani Power, commenting on the financial performance has said, "The past year has been a momentous one for everyone at Adani Power as we became India's largest Private power producer and now with the completion of acquisition of Udupi Power Plant our installed capacity has increased to 10,440 MW. We remain committed to continue expanding towards the goal of achieving a generation capacity of 20000 MW by 2020 to bridge the power deficit in the country."

Vineet Jaain, CEO of the company said, "We had a robust year of overall performance with the completion of all announced projects and stabilization of operations at all plants. We continue on our path of growth focusing on generation and operational excellence. With implementation of policy measures, execution of tariff orders and likelihood of improved domestic coal availability, we are confident of better performance in ensuing year."

Other developments

Pursuant to receipt of all necessary consents and approvals, the Company has acquired 100% stake of Udupi Power Corporation Limited ("UPCL") on April 20, 2015 at an estimated enterprise value of Rs 6300 crore.

As reported earlier, the Company has executed a share purchase agreement with the owners of Korba West Power Company Limited ("KWPCl") during the quarter for acquisition of 100% stake in KWPCL which owns a 600 MW Coal based thermal power plant in state of Chhattisgarh, subject to necessary approvals and consents, As at March 31, 2015, the Company has paid advance consideration of Rs 979.61 crore.

The company during the quarter has participated in the e-auction of coal blocks conducted by the Nominated Authority of the Ministry of Coal, Government of India and has successfully secured the block at Jitpur in the state of Jharkhand. The vesting of the coal block is in process.

The Board of Directors at their meeting held on January 30, 2015, had approved a composite Scheme of Arrangement ("Scheme") under section 391 and 394 of the Companies Act 1956, between Adani Enterprises Limited, the holding Company ("AEL"), Adani Ports and Special Economic Zone Limited (APSEZ), Adani Transmission Limited (ATL) and Adani Mining Private Limited (AMPL) and the Company, for the demerger of various businesses of AEL and simplification of the group structure, As a result of this Scheme, Power Undertaking of AEL will be demerged into the Company along with its assets and liabilities from the appointed date of April 01, 2015, subject to the necessary regulatory approvals and consents. Pursuant to the demerger of the Power Undertaking of AEL into Company and based on fair valuation done, the Company shall issue and allot new equity shares to the equity shareholders of AEL in the ratio of 18596 equity shares in Company for every 10000 equity shares held by the equity shareholder in AEL. The equity shares held by AEL in Company will be cancelled pursuant to the Scheme becoming effective. The Hon'ble High Court of Gujarat vide its order dated May 07, 2015 has approved the Scheme.

The stock hovers around Rs 41.05.