Adani Power, one of the biggest power generation firms in the nation, reported an increase of 12.9% in net profit for Q4 of FY23, coming in at Rs 5242.48 crore. This was attributed to higher one-time revenue recognition, improved tariff realisation, and high import coal price.
Adani Power’s net profit increased to Rs 10,726 crore in FY23 from Rs 4,911.5 crore the year before.
The company’s total revenue for the fourth quarter was Rs 10,795 crore, down form 13,308 crore in the corresponding previous quarter.
During the financial year ended 31st March 2023, APL achieved an average consolidated Plant Load Factor [“PLF”] of 47.9% and sales of 53.39 BU, as compared to consolidated PLF of 51.5% and sales volume of 52.27 BU in the financial year ended 31st March 2022. Operating performance for the year was impacted mainly on account of low PLFs at imported coal-based power plants due to high import coal prices and domestic coal related constraints at plants with open capacities.
During Q4 FY 2022-23, APL achieved average consolidated PLF of 52%, and aggregate sales volumes of 14.25 Billion Units [“BU”]. In comparison, during Q4 FY 2021-22, APL achieved an average consolidated PLF of 52.1% and sales volume of 13.15 BU. Power offtake under long term Power Purchase Agreements [“PPAs”] was constrained by high import coal prices, while the PLF of open capacities was affected by domestic coal related constraints.
Financial Performance
Consolidated Total Revenue for FY 2022-23 rose by 35.8% to Rs. 43,041 Crore, as compared to revenue of Rs. 31,686 Crore in FY 2021-22. The revenue for FY 2022-23 includes recognition of prior period revenue from operations of Rs. 2,377 Crore and prior period Other Income of Rs. 3,395 Crore, mainly on account of regulatory orders for change in law, carrying costs, and Late Payment Surcharge [“LPS”]. In comparison, revenue for FY 2021-22 includes prior period revenue of Rs. 2,970 Crore and prior period other income of Rs. 2,830 Crore. Higher operating revenue arising from revival of the Mundra plant’s 1,234 MW Bid-2 Power Purchase Agreement [“PPA”] with Gujarat Urja Vikas Nigam Limited [“GUVNL”] in March 2022, improved tariff realisation due to greater merchant / short-term demand and higher import coal price, and inclusion of MEL contributed to revenue growth for FY 2022-23.
Consolidated EBITDA for FY 2022-23 stood higher by 3.8% at Rs. 14,312 Crore as compared to Rs. 13,789 Crore for FY 2021-22, mainly due to higher prior period revenue recognition, high import coal price and improved tariff realisation under long-term PPAs, partially offset by higher fuel cost.
Consolidated Profit Before Tax for FY 2022-23 was Rs. 7,675 Crore as compared to Rs. 6,577 Crore in FY 2021-22. Consolidated Profit After Tax for FY 2022-23 stood higher by 118.4% at Rs. 10,727 Crore, as compared to Rs. 4,912 Crore for FY 2021-22 on account of reversals consequent to the implementation of the scheme for amalgamation of six operating subsidiaries of APL with APL with effect from 1st October 2021 following the order of Hon’ble National Company Law Tribunal, Ahmedabad (“NCLT”). The Total Comprehensive Income was Rs. 10,760 Crore for FY 2022-23, as compared to Rs. 4,955 Crore for FY 2021-22.
Consolidated Total Revenue for Q4 FY 2022-23 was Rs. 10,795 Crore, as compared to Rs. 13,308 Crore in Q4 FY 2021-22. Revenue for Q4 FY 2022-23 includes de-recognition of revenue from operations pertaining to prior periods amounting to Rs. (-) 194 Crore and recognition of Other Income pertaining to prior periods amounting to Rs. 325 Crore primarily on account of LPS. In comparison, revenue for Q4 FY 2021-22 included prior period revenue from operations of Rs. 2,946 Crore and prior period Other Income of Rs. 1,982 Crore, primarily on the basis of various regulatory orders. The impact of lower one-time revenue in Q4 FY 2022-23 was partly offset by higher operating revenue on account of revival of the GUVNL Bid-2 PPA, inclusion of revenues of MEL, signing of medium-term PPAs in Raipur and Raigarh plants, improved volume at Udupi, better realisation under merchant / short-term sales, and higher prices of alternate coal.
Consolidated EBITDA for Q4 FY 2022-23 stood lower at Rs. 2,461 Crore, as compared to Rs. 7,942 Crore in Q4 FY 2021-22. EBITDA was affected mainly by lower prior period income recognition, and higher fuel cost.
Consolidated Profit Before Tax for Q4 FY 2022-23 was Rs. 898 Crore as compared to Rs. 6,133 Crore in Q4 FY 2021-22. This reduction was on account of lower EBITDA and higher depreciation charge due to inclusion on MEL, which was partly offset by a reduction in finance cost mainly on account of prepayment of term loans.
Consolidated Profit After Tax for Q4 FY 2022-23 stood higher by 12.9% at Rs. 5,242 Crore, as compared to Rs. 4,645 Crore for Q4 FY 2021-22, including reversals consequent to the Scheme of Amalgamation becoming effective. Total Comprehensive Income was Rs. 5,286 Crore for Q4 FY 2022-23, as compared to Rs. 4,691 Crore for Q4 FY 2021-22.
Business updates
Consequent to approval of the Scheme of Amalgamation by Hon’ble NCLT and fulfilment of the conditions precedent thereto, six operating subsidiaries of APL, viz. Adani Power Maharashtra Limited [“APML”], Adani Power Rajasthan Limited [“APRL”], Adani Power (Mundra) Limited [“APMuL”], Udupi Power Corporation Limited [“UPCL”], Raipur Energen Limited [“REL”], and Raigarh Energy Generation Limited [“REGL”] have been amalgamated with the Holding Company, i.e. APL with effect from 1st October 2021. Following this, CRISIL Ratings Limited and India Ratings Limited have affirmed credit rating of “CRISIL A/Stable” and “Ind A/Positive” respectively assigned to APL.
ESG Update
APL has received a B score for fulfilling climate change and water security commitments from CDP (Carbon Disclosure Project) for 2022, signifying that it is taking coordinated action on climate issues. This score is higher than the global and Asia regional average of C, and is at par with thermal power generation average of B. This score highlights APL’s stewardship in setting competitive benchmarks and fulfilling commitment to reducing the impact of climate change.
APL is a constituent company in the FTSE4Good Index Series.
APL also achieved higher scores than its global peer group average, in various leading ESG assessments, such as:
- 3.5/5.0 in FTSE ESG rating, as compared to world utilities average score of 2.7/5.0.
- 54/100 in Corporate Sustainability Assessment (CSA) by S&P Global, as compared to world electric utilities’ average of 33/100.
- 87% in CSR Hub ESG rating, which is better than the global industry average.
Commenting on the quarterly results of the Company, Mr. Gautam Adani, Chairman, Adani Group said, “India’s growing demand for world-class infrastructure facilities is acting as the springboard for the next phase of its economic growth. As the nation’s foremost infrastructure conglomerate, Adani Group is fully committed to meet it in a sustainable and dependable manner. Reliable and scalable base load power is fundamental to its economic sustenance, which Adani Power is best placed to supplement along with the Group’s diversified presence across the energy value chain of renewable and conventional generation, transmission, and distribution.”
Mr. S B Khyalia, CEO, Adani Power Limited, said, “The indefatigable spirit that drives the Adani Group has been aptly demonstrated by Adani Power Limited by surmounting challenges through perseverance, dedication, and strong belief in fundamental values. The Company now enters the next stage of its corporate journey with a healthy balance sheet, a modern and efficient fleet, and a revitalized holding structure. The culmination of long-deliberated regulatory matters has helped evolve and refine the principles that will enable the power sector to grow profitably and equitably. We have also started a new chapter in cross-border co-operation with the commissioning of the first 800 MW unit of the Godda Ultra-supercritical thermal power project, which will provide Bangladesh with a reliable source of electricity, and help it achieve its long-term economic goals.”
