• Early double digit growth in revenue for the quarter was mainly due to receipt of interim relief from Haryana DISCOMS as change in law for shortfall in domestic coal, pursuant to the CERC's interim order dated 28th September 2017, following the Hon'ble Supreme Court's judgement of 11th April 2017. CERC's interim order on Sep 28, 2017 directed that pending issue of final order, Haryana Utilities shall pay 75% of the relief claimed by the company and based on this order, the company has recognized revenue of Rs 659.26 crore on account of change in Law during the quarter. The amount of Rs 659.26 crore includes Rs 639.67 crore for the period upto March 31, 2017.

• Revenue of operations also includes relief on account of change in law/force majeure events aggregating to Rs 335.39 crore for Q1FY18 (compared to Rs 310.3 crore in corresponding previous period) to compensate the losses suffered due to non allotment of Lohara coal block for APML and non availability/supply of domestic coal in case of APRL.

• Spurred by interim relief the OPM expanded by 470 bps to 33.8%. The fuel cost as proportion to sales was lower by 520 bps to 56.9% and the power purchase cost was up by 80 bps to 1.2%. The staff cost and other expenses were lower by 30 bps and 10 bps to 1.6% and 6.5% respectively.

• Other income jumped up by 173% to Rs 255.69 crore and the growth at PBIDT was 37% to Rs 2356.29 crore. With interest cost stand lower by 3% to Rs 1388.84 crore, the PBDT was up by 244% to Rs 967.45 crore. The depreciation was up by 13% to Rs 678.24 crore and thus the PBT was a profit of Rs 289.21 crore compared to a loss of Rs 316.14 crore in the corresponding previous period.

• EO was nil for the quarter as well as corresponding previous period. Thus, the PBT after EO was a profit of Rs 289.21 crore compared to a loss of Rs 316.14 crore in the corresponding previous period.

• The taxation was a tax write back of Rs 3.50 crore compared to a write back of Rs 3.09 crore in the corresponding previous period. Thus the profit at PAT level stood at Rs 292.71 crore compared to a loss of Rs 313.05 crore in the corresponding previous period.

• The other comprehensive expense was Rs 1.86 crore compared to an expense of Rs 1.0 crore in the corresponding previous period. And thus the total comprehensive income was a profit of Rs 290.85 crore compared to a loss of Rs 314.05 crore in the corresponding previous period.

Half yearly performance

Consolidated sales for the period was up by 8% to Rs 11797.06 crore and that with 50 bps expansion in OPM the operating profit was up by 9% to Rs 3660.94 crore. After accounting for higher other income (up 150% to Rs 313.49 crore), lower interest cost (down 3% to Rs 2795.83 crore) and higher depreciation (up 12% to Rs 1344.38 crore), the loss at PBT was Rs 165.78 crore compared to a loss of Rs 610.50 crore in the corresponding previous period.

EO was nil for the quarter as well as corresponding previous period. The tax write-back was lower by 93% to Rs 4.64 crore and thus the loss at PAT stood at to RS 161.14 crore compared to a loss of Rs 545.68 crore in the corresponding previous period.

The other comprehensive expense was lower by 74% to Rs 0.87 crore and thus the total comprehensive income was a loss of Rs 162.01 crore compared to a loss of Rs 548.98 crore in the corresponding previous period.

Management Comment

Gautam Adani, Chairman of Adani Power, commenting on the financial performance has said, "We are enthused by the steady gain in momentum of reforms initiated by the Government, which aim at relieving key fuel constraints, improving certainty, and expanding the power market. The bidding for coal linkages under the SHAKTI program for plants having PPAs, which was held recently, will allow power plants such as our Tiroda and Kawai projects to get an assured supply of domestic coal. The SAUBHAGYA scheme will accelerate the provision of power connections to a vast, underserved section of our nation, and give a major impetus to power demand growth. The recently signed PPA of 1,496 MW with the Bangladesh Power Development Board will help Adani Power to diversify its portfolio."