Adani Power

The Q3FY13 numbers were disappointing to say the least. Its consolidated net loss widened to Rs.619 crore, up from net loss of Rs.261 crore in Q2Fy13 and Rs.356 crore in Q3FY12. In Q2, the loss was down only due to rupee. What becomes very apparent from the numbers is that operating costs, led mainly by fuel, plus high interest outgo have consistently pushed the company into the red. The company showed a YoY 74% rise in net revenue at Rs.1883 crore but thanks to the 120% rise in fuel cost, 291% surge in total operating expenses and a gargantuan interest outgo, the company is painted red.  The company sold 5957 million units during Q3 FY13 v/s 3018 million units in Q3 FY12, up 97% yet that was not enough.

Coal continued to remain a big thorn like in previous quarters, with high coal cost due to high cost incidence of imported coal and no smooth supply of coal from the linkage of Coal India. The company has filed a petition to CERC to revise tariff but this is a situation faced not just by Adani but the entire sector. But because of its unviable debt, the burden of this cost has become unbearable for the company; also Adani is the largest importer of coal currently in India. It expects to achieve the expansion of capacity from current 5GW to nearly 10GW by 2013.  It is currently developing six power projects for generating 16,500 MW of power across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh and its aim is to generate 20,000 MW by 2020.