Adani Power Q3 consolidated loss widens to Rs 619 crore
New Delhi: Adani Power reported a higher consolidated net loss of Rs 619 crore for the third quarter ended December 2012, mainly due to higher imported coal prices.
The private power producer had a consolidated net loss of Rs 356.3 crore in the 2011 December quarter.
The latest quarterly loss was mainly "due to higher imported coal prices and non-availability of transmission line", Adani Power said in a statement on Monday.
However, the company's consolidated total income in the December 2012 quarter rose to Rs 1,884 crore from Rs 1,079 crore in the year-ago period.
"Our profitability was already impacted mainly by high coal cost due to high cost incidence of imported coal and due to change of law in coal exporting countries.
"In addition, coal linkage and regular supply from the linkage of Coal India Ltd and its subsidiaries is also a must to ensure smooth power generation at optimal cost at our near 10 GW capacity at three plants," Prabal Banerji, CFO of Adani Power Business, said.
The company has already filed a petition with Central Electricity Regulatory Commission (CERC) seeking higher tariffs for power generated from its 4,620 MW Mundra project in Gujarat.
Adani Power has cited "force majeure scenario due to A) change in law in coal exporting countries making imported coal very expensive and B) short supply of coal by CIL against FSA forcing us to use already expensive imported coal".
On a standalone basis, net loss in the 2012 December quarter widened to Rs 507 crore. The same stood at Rs 358 crore in the same period a year ago.
Total income, on a standalone basis, went up to Rs 1,688 crore in the latest quarter under review from Rs 1,060 crore in the year-ago period.
The power producer expects to increase its generation capacity from current level of about 5,320 MW to 10,000 MW by the end of 2013.
Adani Power Chairman Gautam Adani said the domestic outlook for the power sector seems set to improve.
This would on the back of "recent policy measures like PMO direction to sign Fuel Supply Agreement and to work on coal-pooling mechanism, debt restructuring of state electricity boards, rail links for coal evacuation, etc, he added.
"We see these steps as clear indication of the importance attached to this vital sector and boost for more investment under the 12th Five Year Plan," Adani said.
Meanwhile, the company's board today approved re-appointment of Rajesh S Adani as a Managing Director of the company for a period five years starting from April 1, 2013, according to a regulatory filing.
Shares of Adani Power dropped nearly four per cent to Rs 61.25 in late afternoon trade on the BSE.