Q2 FY23 revenue grows to Rs. 8,446 crore, up 52% y-o-y
Q2 FY23 EBITDA grows to Rs. 2,350 crore, up 51% y-o-y
Q2 FY23 PAT grows to Rs. 696 crore
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Editor’s Synopsis
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Ahmedabad, November 11th, 2022: Adani Power Ltd. [“APL”], a part of Adani Group, today announced the financial results for the second quarter ended 30th September 2022.
Electricity Demand and Supply in India
Electricity demand in India has continued to be strong as a result of improving economic performance in FY 2022-23, further spurred by a heat wave in the first quarter of the financial year. Aggregate energy demand for H1 FY 2022-23 across the nation was 786 Billion Units (BU), registering a growth of 11% over the energy demand for H1 FY 2021-22 at 708.8 BU. Similarly, peak power demand registered a growth of 6% to scale a new peak of 215.9 GW in H1 FY 2022-23, as compared to 203 GW in H1 FY 2021-22. Strong electricity demand growth, coupled with fuel shortages caused expansion of the Energy deficit to 0.7% in H1 FY 2022-23 as compared to 0.3% in H1 2021-22. Similarly, peak power deficit increased to 4% during H1 2022-23, as compared to 1.2% in H1 2021-22. Widening of peak deficit coupled with fuel supply constraints, high imported coal prices, have resulted in a sharp rise in merchant and short-term tariffs.
Business updates for Q2 FY 2022-23
APL has signed a Memorandum of Understanding for acquisition of DB Power Limited, a company that owns and operates a 2×600 MW thermal power plant at Janjgir Champa in Chhattisgarh. The acquisition of this asset will help APL extend its leadership position among India’s private power producers and expand its capacity in some of the key fuel-bearing regions of Central India.
CRISIL Ratings and India Ratings have assigned ‘CRISIL A/Stable’ and ‘Provisional Ind A/Positive’ ratings to proposed bank facilities of APL, which will be put in place upon completion of the scheme of amalgamation, which is presently under approval.
Operating performance
During Q2 FY 2022-23, APL and its subsidiaries achieved an average Plant Load Factor (“PLF”) of 39.2% and power sale volume of 11 Billion Units (“BU”), as compared to PLF of 48.7% and power sale volume of 12.4 BU in Q2 FY 2021-22. The operating performance for Q2 FY 2022-23 includes the 1,200 MW power plant of Mahan Energen Ltd., which was acquired in March 2022.
During the quarter, performance was affected by high import coal prices leading to grid back downs and Reserve Shutdowns at Mundra and Udupi. Volumes were constrained at other plants due to challenges in fuel availability despite higher power demand.
During the six months ended 30th September 2022, APL and its subsidiaries achieved an average PLF of 48.9% and sales of 27.3 BU, as compared to a PLF of 56.7% and sales volume of 28.6 BU in the six months ended 30th September 2021.
Financial performance
Consolidated Total Income for Q2 FY 2022-23 stood 52% higher at Rs. 8,446 crore, as compared to Rs. 5,572 crore in Q2 FY 2021-22. This increase in revenue was aided by improved tariffs under long term Power Purchase Agreements (“PPAs”) on account of higher import coal prices, as well as improved merchant / short term tariffs due to higher demand. The revenue for Q2 FY 2022-23 includes one-time items of Rs. 912 crore, primarily in the form of higher other income on account of Late Payment Surcharge. In comparison, the income for Q2 of previous year included one-time revenue recognition of Rs. 141 crore. Financial performance for Q2 FY 2022-23 includes the 1,200 MW power plant of Mahan Energen Ltd., which was acquired in March 2022.
Consolidated Total Income for the first half of FY 2022-23 stood 87% higher at Rs. 23,955 crore, as compared to Rs. 12,785 crore in H1 FY 2021-22. The revenue for H1 FY 2022-23 includes prior period operational income of Rs. 2,409 crore, and prior period other income of Rs. 2,715 crore, both primarily on account of various regulatory orders. In comparison, the income for H1 of previous year included one-time revenue recognition of Rs. 25 crore and prior period other income of Rs. 773 crore, both primarily on account of various regulatory orders.
The EBITDA for Q2 FY 2022-23 stood 51% higher at Rs. 2,350 crore, as compared to Rs. 1,551 crore in Q2 FY 2021-22, mainly on account of higher one-time income, which was partially offset by higher operating expenses.
The EBITDA for H1 FY 2022-23 similarly stood higher by 156% at Rs. 9,856 crore, as compared to Rs. 3,844 crore in H1 FY 2021-22, aided by improved merchant and short-term tariffs, revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs, and higher prior period revenue recognition.
Profit Before Tax for Q2 FY 2022-23 was Rs. 699 crore, as compared to Loss Before Tax of Rs. (-) 210 crore for Q2 FY 2021-22. Profit / (Loss) After Tax for the two periods was Rs. 696 crore and Rs. (-) 231 crore respectively.
Profit Before Tax for H1 FY 2022-23 was Rs. 6,565 crore, as compared to Profit Before Tax of Rs. 240 crore for H1 FY 2021-22. Profit After Tax for the two periods was Rs. 5,475 crore and Rs. 48 crore respectively.
Mr. Anil Sardana, Managing Director, Adani Power Limited, said, “Conventional power continues to act as the bedrock of India’s stable grids, thereby enabling investments in renewable energy for achieving the nation’s ambitious targets for carbon intensity reduction. Even as the world grapples with the fallout of geopolitical instability in the energy sector, India’s natural resources such as solar energy, wind, and coal have helped protect its economy despite reliance on imports of fossil fuels. Adani Power, is positioned ideally to support India’s growing energy needs and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it. We will continue to seize value accretive opportunities and pursue our long-term growth strategies to leverage our complementarity with the Adani Group’s energy portfolio and partnerships in natural gas and solar energy.”