Q3 FY23 revenue grows to Rs. 8,290 crore, up 48% y-o-y
Q3 FY23 EBITDA at Rs. 1,996 crore
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Editor's Synopsis
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Ahmedabad, 8 February 2023: Adani Power Ltd. [“APL”], a part of Adani Group, today announced the financial results for the third quarter and nine months ended 31st December 2022.
Financial Performance
Consolidated Total Income for Q3 FY 2022-23 stood 48% higher at Rs. 8,290 crore as compared to Rs. 5,594 crore in Q3 FY 2021-22, aided by higher regulatory income, increased operating capacity, improved tariff realisation under long term Power Purchase Agreements (“PPA”), and revival of 1,234 MW Bid-2 PPA with Gujarat DISCOMs in March 2022. Financial performance for Q3 FY 2022-23 includes the performance of the 1,200 MW power plant of Mahan Energen Ltd., which was acquired in March 2022.
The revenue for Q3 FY 2022-23 includes one-time prior period revenue of Rs. 517 crore. In comparison, one-time revenue items of this nature in Q3 FY 2021-22 amounted to Rs. 74 crore.
Consolidated Total Income for the first nine months of FY 2022-23 stood 75% higher at Rs. 32,245 crore as compared to Rs. 18,379 crore in 9M FY 2021-22, and included prior period income of Rs. 5,641 crore, primarily on account of various regulatory orders. In comparison, the income for 9M FY 2021-22 included one-time items of this nature of Rs. 872 crore.
The EBITDA for Q3 FY 2022-23 stood marginally lower at Rs. 1,996 crore, as compared to Rs. 2,003 crore in Q3 FY 2021-22, constrained mainly by higher fuel cost, which was partially offset by higher one-time income.
The EBITDA for 9M FY 2022-23 stood higher by 103% at Rs. 11,851 crore, as compared to Rs. 5,847 crore in 9M FY 2021-22, aided by improved tariff realization, higher one-time revenue recognition, and revival of 1,234 MW Bid-2 PPA.
Profit Before Tax for Q3 FY 2022-23 was Rs. 212 crore, as compared to Profit Before Tax of Rs. 204 crore for Q3 FY 2021-22. Profit Before Tax for 9M FY 2022-23 was Rs. 6,777 crore, as compared to Profit Before Tax of Rs. 444 crore for 9M FY 2021-22.
Operating Performance
During Q3 FY 2022-23, APL and its subsidiaries achieved an average Plant Load Factor (“PLF”) of 42.1% and power sale volume of 11.8 Billion Units (“BU”), as compared to PLF of 41% and power sale volume of 10.6 BU in Q3 FY 2021-22. The operating performance for Q3 FY 2022-23 includes the performance of the 1,200 MW power plant of Mahan Energen Ltd., which was acquired in March 2022.
Operating performance during Q3 FY 2022-23 was constrained mainly due to high import coal prices and insufficient domestic fuel availability due to high power demand.
During the nine months ended 31st December 2022, APL and its subsidiaries achieved an average PLF of 46.6% and sales of 39.1 BU, as compared to a PLF of 51.4% and sales volume of 39.1 BU in the nine months ended 31st December 2021.
Mr. Anil Sardana, Managing Director, Adani Power Limited, said, "Adani Power Limited has consistently demonstrated its superior skills in project execution, excellence in power plant operations, and capabilities in fuel and logistics management, which has helped it turn around stressed power assets acquired under schemes of corporate debt resolution, apart from setting various benchmarks in its greenfield power plants. With resolution of most of its regulatory issues now, the Company is well placed in terms of liquidity to meet its present commitments and growth requirements. Adani Power Limited, with its strategically located and efficient power plants, is poised to gain maximum advantage from India’s growing power demand and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it.”
Business Updates for Q3 FY 2022-23
The proposed Scheme for Amalgamation of APL with six of its operating subsidiaries has received approval of its secured creditors. The amalgamation process is expected to be completed shortly.
Unit-1 of 800 MW capacity of the 2x800 MW Ultra-supercritical Godda Power Project of APL’s wholly owned subsidiary, Adani Power (Jharkhand) Limited (“APJL”) has been synchronized successfully with the Bangladesh Grid on 29th November 2022. The construction of Unit-2 is in full swing and is expected to be completed soon.
The Company is well on course to set up Flue Gas Desulphurisation equipment (“FGD”) at its thermal power plants to meet revised emission norms of the Ministry of Environment, Forests, and Climate Change (“MOEF&CC”) within the permitted timeline.
Credit Rating Update
The Company and its subsidiaries have maintained their credit ratings during Q3 FY 2022-23. 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.
ESG Update
APL has received a B score for climate change transparency 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 on 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 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.
- 59/100 in Corporate Sustainability Assessment (CSA) by S&P Global, as compared to world electric utilities’ average of 33/100.
- 88% in CSR Hub ESG rating, which is better than the global industry average.
Indian Power Sector Update
Continuing robust economic growth, coupled with the Government’s drive to provide Power To All, has led to electricity demand registering strong growth consistently over the last two years. Aggregate electricity demand attained 10% growth in the nine months ended 31st December 2022 at 1,138 BU over demand in the same period last year. Similarly, peak power demand registered a growth of 6% to scale a new peak of 215.9 GW by December 2022, as compared to a peak of 203 GW in FY 2021-22. This sharp demand growth has led to higher peak power deficit of 4% in FY 2022-23, as compared to 1.2% peak deficit during the same period last year. In the merchant market, high prices of open market coal and constraints in coal availability have led to average clearing prices on IEX rising to Rs. 5.23 / kWh in the Day Ahead Market during December 2022.