Adani Power announces Q1 FY23 consolidated results
- Consolidated total revenue for Q1 FY23 at Rs. 15,509 Crore vs Rs. 7,213 Crore in Q1 FY22, an increase of 115%.
- Consolidated EBITDA for Q1 FY23 at Rs. 7,506 Crore vs Rs. 2,292 Crore in Q1 FY22, a rise of 227%, which includes prior period revenue recognition of Rs. 4,212 Crore vs Rs. 657 Crore during the respective periods.
- Profit After Tax for Q1 FY23 at Rs. 4,780 Crore vs Rs. 278 Crore for Q1 FY22, an increase of 16x.
Ahmedabad, August 3rd, 2022: Adani Power Ltd. [“APL”], a part of the Adani Group, today announced the financial results for the quarter ended June 30th, 2022.
Electricity Demand and Supply in India
A nation-wide heatwave and broadening of the recovery in economic activity continued to drive electricity demand growth in the first quarter of FY 2022-23. Aggregate energy demand for Q1 FY23 was 404.8 Billion Units (BU), registering a growth of 18.6% over the energy demand for Q1 FY22. This led to peak power demand scaling further heights and reaching a record level of 215.9 GW during the quarter. On the other hand, this sharp increase in power demand could not be matched by coal availability due to domestic shortages and high prices of imported coal, leading to peak power deficit of 4% and energy deficit of 1%.
As a result, DISCOMs have turned increasingly to the short-term power markets for meeting their requirements in a flexible manner, with buy-side bids growing 1.5 times in the Day Ahead Market over the previous year as per the Indian Energy Exchange. Improvement in coal availability and hence supply of electricity resulted in tempering of average market clearing prices from Rs. 8.23/kWh in March 2022 to Rs. 6.49/kWh in June 2022.
Business updates for Q1 FY 2022-23
The Company’s wholly owned subsidiary, Adani Power Maharashtra Limited, has received part payment towards domestic coal shortfall claims pertaining to deallocation of the Lohara Coal Block and coal supplies under NCDP/SHAKTI policies, along with applicable carrying cost from the Maharashtra Electricity Distribution Company Ltd. pursuant to Hon’ble Supreme Court’s interim order.
Performance during Q1 FY 2022-23[1]
During Q1 FY 2022-23, APL, along with the power plants of its subsidiaries achieved an Average Plant Load Factor [“PLF”] of 58.6% and aggregate sales volumes of 16.3 Billion Units [“BU”] on an installed base of 13,650 MW. In comparison, during Q1 FY 2021-22, APL and its subsidiaries had achieved an average PLF of 64.8% and sales volume of 16.2 BU on an installed base of 12,450 MW. Operating performance during the quarter was affected due to high import coal prices which impacted the performance of Mundra and Udupi, while volumes at Raipur and Raigarh were lower due to domestic coal shortage. This was partially offset by improved volumes due to high demand for power at Tiroda and Kawai, and inclusion of operating performance of the newly acquired Mahan plant.
Consolidated Total Revenue for Q1 FY 2022-23 stood higher by 115% at Rs. 15,509 Crore, as compared to Rs. 7,213 Crore in Q1 FY 2021-22. This increase in revenue was aided by increase in PPA tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs, and higher prior period revenue recognition.
Revenue for Q1 FY 2022-23 includes recognition of prior period revenue from operations of Rs. 2,561 Crore, and prior period other income of Rs. 1,651 Crore primarily on account of various regulatory orders. The corresponding amounts of prior period revenue recognition for Q1 FY 2021-22 were Rs. 125 Crore and Rs. 532 Crore respectively.
The EBITDA for Q1 FY 2022-23 stood higher by 227% at Rs. 7,506 Crore, as compared to Rs. 2,292 Crore in Q1 FY 2021-22. EBITDA growth was aided by prior period income recognition, improved tariff realisation, and change in sales mix, partially offset by impact of higher fuel cost, increased operating expenses owing to acquisition of Mahan Energen Ltd., unfavourable foreign exchange movement, etc.
The Profit After Tax for Q1 FY 2022-23 was Rs. 4,780 Crore, which was 16x higher than the corresponding figure of Rs. 278 Crore for Q1 FY 2021-22.
Commenting on the quarterly results of the Company, Mr. Anil Sardana, Managing Director, Adani Power Limited, said, “As the world goes through a period of increased uncertainty and hyperinflation in commodity prices caused by geopolitical conflict, India’s energy sector has also faced price-adversity. However, pragmatic policy decisions and abundant natural resources have shielded the economy from its worst impact. Adani Power Ltd. has been able to utilise the opportunities presented by the market situation effectively, leveraging its diversified fleet and operations-excellence to meet rising power demand. Regulatory issues that were outstanding since long are nearing full resolution, improving visibility and providing us liquidity to propel our drive to realise our long-term strategies and meet our stakeholder value aspirations duly keeping our utmost commitment to ESG aspects.”
[1] Includes operating and financial performance of Mahan Energen Ltd., which was acquired on March 16, 2022. On account of practical expediency, the effective date of the acquisition has been considered as March 31, 2022 for consolidation purpose. As a result, consolidated performance for Q1 FY 2022-23 is not strictly comparable with that of previous quarters.
