Adani Power lights up
Adani stocks are back in the reckoning today, with Adani Power leading currently, up 3.3% at Rs.53.35, its intra day high. Its 52-week high is at Rs.62.40.
The company issued a Press Release after market hours that it has emerged as the largest power producer of India after commissioning the 4th unit of 660 MW at its Tiroda plant. The total installed capacity now stands at 8620MW. Adani Power has added 2,640 MW of capacity; 15% of India’s overall power generation in FY14.
The company also added 40 MW solar power capacity at Kutch, taking the overall capacity to 8620 MW, the highest amongst all private sector producers, across all fuels.
On the financial front, the company ended with a consolidated net loss at Rs.545 crore but the good part is that this loss was narrower than Rs.619 crore loss of Q3FY13 and much lower than huge loss of Rs.1072 crore in Q2FY14. The company has blamed the loss on higher imported coal cost due to limited availability of domestic coal, non-cash charge of depreciation and provision for deferred tax. PLF also improved to 75% as compare to PLF of 63% achieved in Q2FY14. During the quarter, the company sold 11.2 billion units v/s 9.1 billion units in Q2.
Its major outgo is fuel cost, which at Rs.2525 crore ate away 60% of the net revenue earned. This quarter it also had an additional outgo of Rs.328 crore on cost of power purchased. Forex loss has narrowed from Rs.115 crore in Q2 to Rs.14 crore in current Q3. Interest cost remains huge at Rs.953 crore, more than doubled up YoY and up 10% sequentially. Interest outgo for 9MFY14 was at Rs.2488 crore as against Rs.1646 crore for FY13. Tax outgo too has risen considerably at Rs.131 crore. Though operationally things have improved, coal continues to remain a black spot pushing the company into the red. The company awaits the formal order from CERC on compensatory tariff ofr its Mundra plant.