EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 202% to Rs. 4,336 crores in Q2 FY24 from Rs. 1,438 crores in Q2 FY23, the business reported. This increase was primarily due to lower fuel costs, higher merchant tariffs, and the addition of the Godda Power Plant. CEO of Adani Power, SB Khyalia stated that, Adani Power has solidified its position as the most competitive and dependable power generator in India.
It also provides stable cash flows and high creditworthiness derived from a steady revenue stream and a fleet that is strategically located, reliable, and emits the fewest emissions per generation unit. The organization is enhancing its established competencies by incorporating digitalization, analytics, and state-of-the-art technologies to deliver a steady, dependable, and reasonably priced power supply in an environmentally friendly way.
The company reported a 61% increase in consolidated total revenue for the second quarter of FY24
According to the company, higher sales volumes are the primary reason for the consolidated total revenue for Q2 FY24, up 61% to Rs. 12,155 crores from Rs. 7,534 crores in the same period last year. It explained that higher sales volumes, which included the Godda Power Plant’s contribution, and higher merchant sales were the cause of this increase in revenue. According to the statement, lower import coal prices contributed to higher power offtake under the import coal-based Power Purchase Agreements (PPAs) of the Udupi and Mundra plants.
Authorised regulatory procedures set the tariffs under these PPAs and follow global coal prices. The Q2 FY24 consolidated power sale volume, was 18.1 billion units (BU), up 65% from 11 BU the previous year, owing to increased operating capacity and better power demand. Compared to a year ago, Q2 FY24’s consolidated EBITDA of Rs. 1,438 crores was up 202% to Rs. 4,336 crores. The increase can be attributed to higher merchant tariffs, lower fuel costs, and higher sales volumes.
The 1,600 MW Godda Ultra-supercritical thermal power plant of APL’s subsidiary Adani Power (Jharkhand) Ltd. (APJL), which went into service in Q1 FY 2023–24 (April–June 2023), is included in the operating performance for Q2 FY 2023–24. Performance improved during the quarter due to increased power offtake in the Mahan, Udupi, Raipur, and Mundra plants in addition to Godda’s incremental contribution. Godda has successfully ramped up its operations since commissioning despite the Adani shares overleveraged controversy.
It achieved an average PLF (plant load factor) or capacity utilisation of 59.2 per cent and sales of 35.6 BU during the six months ended September 30, 2023.
The company’s other income increased by 38.7% year on year to Rs. 1,945 crores
The business reported that it had recorded an additional income of Rs. 266.68 crores from Maharashtra State Electricity Distribution Company Limited (MSEDCL) during the quarter, along with dealing with Adani shares overleveraged controversy which was attributed to a late or delayed payment surcharge. Adani Power stated in its results notes that using unutilized tax credits resulted in zero current and deferred tax expenses relative to the company’s profits for the quarter under review.
The company stated that since it was likely that taxable profits would be available in the future to offset these tax credits against, it had recognized deferred tax assets of Rs. 1,359.32 crores on its unused tax credits.
Adani Power – The most dependable power generator in India
According to Adani Power CEO SB Khyalia, the company has solidified its standing as the most dependable and competitive power provider in India, with steady cash flows and strong creditworthiness derived from a stable revenue stream. This fleet is strategically positioned, trustworthy, and emits the fewest emissions per generation unit. The organization is enhancing its established competencies by incorporating digitalization, analytics, and state-of-the-art technologies to deliver a steady, dependable, and reasonably priced power supply in an environmentally friendly way.
Despite the controversy surrounding Adani shares overleveraged, the company and its subsidiaries achieved an average Plant Load Factor (PLF) of 58.3% in Q2 FY24. In addition, the power sales volume was 18.1 billion units, compared to Q2 FY23’s power sales volume of 11 billion units and PLF of 39.2 per cent. At Rs. 393.15, the stock was last seen trading 7.71 per cent higher.
Adani Power is prepared to enhance its role as the top generator of private electricity
Adani Power’s CEO, S B Khyalia, stated that the company is prepared to increase its role as the top private power producer and fulfil the country’s expanding energy needs as opportunities in the Indian power market arise. In addition to handling the Adani shares overleveraged controversy, the company operates eight power plants with a combined installed thermal power capacity of 15,210 MW in several places (like Chhattisgarh, Godda, etc.). Additionally, there is a 40 MW solar power plant located in Gujarat.
