Adani Power Ltd. (APL) on Wednesday announced its financial results for the first quarter ended June 30, 2024.
On the financial results, CEO of Adani Power Limited, S B Khyalia said, “As Adani Power grows from strength to strength, we have undertaken advanced development activities to secure execution pipelines for three ultra-supercritical projects of 1,600 MW each to prepare for the anticipated resurgence in the thermal power sector. Our strategic focus is to derisk our growth plans by utilising high efficiency, low emission technologies, pooling our deep experience and multi-domain expertise for project development, securing access to fuel resources, and revitalising the organisation to become more agile and competitive in the digitalized world. Adani Power is dedicated to enhancing lives and ensuring India’s energy security by proactively addressing the need for sustainable, affordable, and reliable power, while also being a responsible steward of the environment and surrounding communities.”
In India, the demand for power is still rising rapidly; in the first quarter, overall consumption increased by 10.6% year-on-year, and peak demand increased by 12% to reach a record-breaking 250 GW. Higher offtake from both contractual and open capacity at APL’s power facilities is the outcome of this favourable climate for the power industry.
During Q1 FY 2024-25, higher volumes were contributed by almost all plants, led by Mundra and Mahan, in addition to Godda, the second 800 MW unit of which was commissioned on June 26, 2023. Growing power demand continued to increase domestic power sales volumes while declining import coal costs helped to further support offtake under Power Purchase Agreements (PPAs).
Key Financial Highlights for Q1 FY 2024-25
APL has now transitioned to an era of greater regulatory certainty after satisfactory resolution of all major regulatory matters and recovery of regulatory dues during FY 2023-24. Consequently, prior period revenue recognition on account of regulatory orders has come down significantly. Reported revenues of Rs. 15,474 crore for Q1 FY 2024-25 include prior period items of Rs. 422 crore pertaining to regulatory matters, as compared to prior period items of this nature of Rs. 6,497 crore forming part of Q1 FY 2023-24 reported revenues of Rs. 18,109 crore.
Operating revenue growth was tempered in comparison to volume growth in Q1 FY 2024-25 due to lower tariff realisation on account of a reduction in import coal prices.
In Q1 FY 2024-25, continuing EBITDA saw a strong growth of 53% to Rs. 6,290 crore as compared to Rs. 4,121 crore for Q1 FY 2023-24, mainly due to higher merchant contribution, lower import fuel prices and an increase in fixed charges after full commissioning of the Godda plant.
Depreciation Charge for Q1 FY 2024-25 increased to Rs. 996 Crore as compared to Rs. 935 Crore for Q1 FY 2023-24 due to the addition of Unit II of the Godda Ultra-supercritical Thermal Power Plant (USCTPP).
Finance Cost for Q1 FY 2024-25 was reduced to Rs. 811 Crore as compared to Rs. 883 Crore for Q1 FY 2023-24 due to a reduction in borrowings as well as lower interest rates.
APL recorded continuing profit before tax of Rs. 4,483 crore for Q1 FY 2024-25, which is higher by 95% compared to the continuing PBT for Q1 FY 2023-24 of Rs. 2,303 crore as a result of improved performance across all key parameters as highlighted above.
ESG Performance
Along with its third Business Responsibility Sustainability Report (BRSR), APL has released its first integrated annual report in compliance with the Integrated Reporting (IR) guidelines. The Carbon Disclosure Project (CDP) awarded APL a ‘B grade’ for 2024 for meeting its commitments to water security and climate change.
APL outperformed the average score of 34/100 for World Electric Utilities in the S&P Global Corporate Sustainability Assessment (CSA), with a score of 48/100. In January 2024, APL received a CSR HUB ESG Rating of 88%, which is higher than the industry average for the world.
Further Updates
APL’s subsidiary Mahan Energen Limited (MEL) has filed a Scheme of Amalgamation with the National Company Law Tribunal (NCLT) for the integration of Stratatech Mineral Resources Pvt. Ltd. (SMRPL), a wholly-owned subsidiary of Adani Enterprises Ltd., with itself, in the direction of the company’s vision to strengthen energy security.
A Coal Block Development & Production Agreement has been signed with SMRPL, who is the allocatee for the Dhirauli Coal Mine. The Dhirauli Coal Mine is located near the MEL thermal power facility in Singrauli, Madhya Pradesh, and has a peak-rated capacity to generate 6.5 million tonnes of coal annually.
Adani Infra (India) Ltd. has sold Mirzapur Thermal Energy U. P. Pvt. Ltd. (MTEUPL) to APL. In the Mirzapur District of Uttar Pradesh, MTEUPL possesses land suitable for the construction of a large-scale thermal power plant. This will present an opportunity for the company to extend its geographic footprint in India and its generating capacity in line with its long-term strategy.
At its current 1,370 MW plant in Raipur, Chhattisgarh, APL has started to design a 2×800 MW (1600 MW) USCTPP expansion project. Additionally, initial ordering for a greenfield 2×800 MW (1600 MW) USCTPP in Mirzapur, Uttar Pradesh, has been started by the company’s wholly-owned subsidiary MTEUPL.
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