Adani Power

Like the expected thumping victory of Modi, timing itself well, Adani Power too has turned around in Q4FY14. The company has recorded a consolidated net profit of Rs.2529 crore v/s net loss of Rs.545 crore in Q3 and loss of Rs.585 crore in Q4FY13. Two things have helped the company achieve this – firstly the tax write back of Rs.1400 crore  and the fact that the revenue also includes recognition of compensatory tariff of the past periods. The Central Electricity Regulatory Commission (CERC) allowed the company compensatory tariff, over and above the tariff agreed under the PPAs. As per the CERC order, the company will receive from customers in equal instalments, Rs.830 crore for tariff till 31^st March  2013,  and another Rs.1013 crore as compensatory tariff for period from 1^st April 2013 to 31^st March 2014. Though this CERC order has been challenged by appealed, with a hearing scheduled for 22^nd May, the company has assumed that the order will go in its favour and added on this compensatory tariff of Rs.1843 crore to the revenue. Thus the compensatory tariff and the tax write back helped the company turnaround.

On the interest front, its outgo for the quarter was at Rs.1165 crore, up 22% sequentially and up 107% YoY. For FY14, the outgo was at Rs.3655 crore, 23% of net revenue earned and has risen by a huge 122% over FY13. Its borrowings as at 31^st March 2014 stands at Rs.39,769 crore, up 6%. The company ended the fiscal with a 132% surge in consolidated net revenue at Rs.15754 crore and net loss was at Rs.290 crore, down from the loss of Rs.2295 crore in FY13.