Adani Power reduces net loss from Rs. 1,198 cr to Rs. 303 cr in Q1 FY15

Adani Power Ltd (APL), a subsidiary of Adani Enterprises Ltd, on Wednesday reported an increase of 104% in consolidated income, saying its consolidated net loss reduced to Rs. 303 crore in the first quarter of 2014-15, ended June 30, as compared to the corresponding period last fiscal.

While the company’s consolidated income increased to Rs. 5,248 crore (Rs 2,572 crore), its net loss decreased from Rs. 1,198 crore to Rs. 303 crore during the period, a company spokesman said here.

Consolidated EBIDTA for Q1FY15 increased by 227% to Rs. 1,645 crore (Rs 504 crore) due to higher volume of power sold and recognition of compensatory tariff.

The company sold 13.43 billion units (8.1 bn units) and received favorable interim orders from Rajasthan Electricity Regulatory Commission (RERC) for compensatory tariff over and above PPA tariff.

Commenting on the company’s financial performance, Gautam Adani, Chairman, said the outlook of power sector is likely to improve as the new Government at the Centre has combined the Ministries of Coal and Power for speedy policy decision resolution. The recent announcements by the Government to increase fuel availability, commitment for transmission and distribution developments and financial restructuring of SEBs will give a renewed boost to the power sector of the country in the near future.

Vineet Jain, Chief Executive Officer, Adani Power, said, the company’s overall result reflects improved power generation from APL’s installed capacity of 8,580 MW with improved PLF and lower auxiliary consumption.

“With increased generation and operational efficiencies coupled with improved domestic coal availability, rail infrastructure and implementation of tariff revision petitions, we are confident of better performance in the ensuing quarters.”

The company expects to achieve thermal power generation capacity of 9,240 MW soon, he added.