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Adani Power reports loss of Rs 358 cr in Q3

Last Updated: Monday, February 6, 2012 - 22:10

Ahmedabad: Adani Power Ltd (APL), subsidiary of Adani Enterprises Ltd (AEL), on Monday reported loss of Rs 358 crore in the third quarter ending December, due to increase in coal prices and forex losses.

The company had posted a net profit of Rs 109 crore in the October-December period of last fiscal.

Net sales of the company were up over two-fold at Rs 1,059 crore during the quarter (2011-12), against Rs 503 crore in the corresponding period last fiscal.

"We imported coal from two mines in Indonesia at a higher price, as a result of which the overall per unit coal cost has jumped to Rs 2.44 per unit, impacting profitability," the company's CFO Prabal Banerjee told reporters.

The company's overall coal cost was over Rs 1.22 per unit last year in the corresponding period.

The company imports coal from Indonesia at around USD 36 per tonne for its power plant in Mundra, besides sourcing it domestically.

"The losses on foreign exchange side are Rs 337 crore in the books, of which Rs 132 crore was provided for in the third quater, and Rs 205 crore (forex losses) are marked to market losses," he said.

The company's average realisation per unit kilowatt hour stood at Rs 3.51 in the quater ending December versus Rs 2.93 in the corresponding period a year ago. Banerjee claimed that of the Rs 337 crore losses, Rs 295 crore is reversible as of today in wake of an appreciating rupee, reducing the foreign exchange impact to Rs 40 crore.

A provision for deferred tax of Rs 24 crore had to be done in the quater, he added.

The company sold 3,018 million units of power in the quarter ended December, 2011 over 1,718 units in the corresponding period last year.

It generated 3,381 units in the third quarter, against 1,931 in the corresponding period last year.

The company is hopeful of having 4,620 MW capacity at Mundra by March 2012. It expects 9,600 MW capacity by March 2013, with the synchronisation of its power plants in Tiroda
and Kawai.

"By the end of March 2012, 4,620 MW at Mundra will be up and running, with the commissioning of unit 8 and 9 there.

We also expect one unit of 660 MW at Tiroda to go on stream by March," Banerjee said.

The unit 5 and 6 at Mundra could not operate at full blast as transmission lines are not ready, he said.

APL's total debt stood at Rs 24,000 crore, of which nearly Rs 14,000 crore has been re-financed on COD, so as to bring down the net weighted interest yield.

"Through re-financing, we have been able to gain by 200 to 250 basis points," Banerjee said.

The company is banking on prioritised coal allocation from the Coal India Limited (CIL).


First Published: Monday, February 6, 2012 - 22:10
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