Adani Power

The numbers of Adani Power continues to remain dismal. The stock yesterday hit a new low and today too, it remains streaked in the red. All had expected the company to report a loss for the Q1 but it was way beyond expectations. Net loss came in at Rs.991 crore compared to loss of Rs.426 crore in Q4 and loss of Rs.793 crore in Q1FY13. Thus this Q1 net loss is the highest. Though revenue had shown a 44% (YoY) rise at Rs.2108 crore, the high cost of fuel at Rs.1489 crore, up 26% did it in. Total operating cost at Rs.2161 crore, far exceeded the revenue earned. Matters further aggravated with the huge interest burden wherein outgo for Q1 was at Rs.595 crore, up by a whopping 94% (YoY). Forex loss of Rs.304 crore led to the further fall.

The company has blamed the poor performance on  MTM provision for rupee depreciation, non-cash items such as depreciation, provision for deferred tax and higher import of coal due to limited availability of domestic coal. During the quarter, it sold  8.1 billion units v/s 4.5 billion units(YoY). The company has further started two units of 660 megawatt each in Q1FY14, taking the total capacity now to 7260 MW. In Fy14, the company has set itself a target of 9240 MW going on stream. The company, during the quarter raised Rs.2,542 crore in the June quarter by way of preferential allotment of shares to promoters at Rs.53.11 per share, increasing the promoter holding to 75%.