Adani Power Surges 5 Percent: Impressive Q3 FY24 Results/Reuters
Adani Power Surges 5 Percent: Impressive Q3 FY24 Results
Shares of Adani Power, India’s largest private thermal power producer, surged 5% to ₹570 in early trade following robust financial results for the December quarter. The company reported a significant increase in net profit, soaring from ₹9 crore in Q3FY23 to ₹2,738 crore in Q3FY24, driven by a 67.32% YoY growth in consolidated revenue, reaching ₹12,991 crore. The power sale volume reached 21.5 Billion Units (BU), an 82% YoY increase, attributed to improved power demand and larger installed capacity.
Increased Power Sales and Revenue Growth
Adani Power’s power sale volume in Q3FY24 rose to 21.5 BU, an 82% YoY increase, driven by the Mundra, Udupi, Raipur, and Mahan plants, along with the incremental contribution of the Godda power plant in Bangladesh. The company highlighted that domestic power sales volumes grew due to rising power demand in India, with Power Purchase Agreements benefiting from declining prices of imported coal and alternative fuels.
Tripled EBITDA and Reduced Finance Costs
The EBITDA for Q3FY24 tripled to ₹4,605 crore, compared to ₹1,470 crore in Q3FY23, fueled by increased revenues and lower prices of imported fuels. The company also reduced its finance cost to ₹797 crore from ₹946 crore in Q3FY23, attributed to a decrease in secured and unsecured debt over the past year. The reduction was partly offset by higher borrowing costs for the Godda power plant.
Strategic Equity Sale and Future Plans
Adani Power signed an initial pact to sell 100% equity in its subsidiaries, Aviceda Infra Park and Innovant Buildwell, to AdaniConnex for ₹190 crore and ₹350 crore, respectively. The CEO, Mr. S B Khyalia, emphasized the company’s strategically located power plants, optimal capacity allocation, and ongoing capacity expansion at Mahan. He expressed excitement about contributing to nation-building efforts through reliable electricity supply while prioritizing sustainability goals.
At 11:00 am, the stock was trading at ₹561.30 apiece, reflecting a gain of 3.31%.