Adani Power Limited, the largest privately-owned thermal power producer in India, posted its first quarterly results of the new financial year on 5th August 2021. The company recorded an impressive performance as it recovered from losses of Rs 682 crore posted in the first quarter of the last financial year to post a profit after tax of Rs 278 crore this year. Total income rose to Rs 7,213.21 crore in the quarter from Rs 5,356.19 crore in the same period a year ago, led by increased demand for electricity in the year.
The company witnessed a 16% y-o-y increase in the demand for electricity. It rose from 293 billion units (BU) in the last year to 341 BU in the first quarter of the year under review. This pushed the total comprehensive income for Adani Power to grow to Rs 270 crore in Q1 FY2022. In the past year, the company had reported a comprehensive loss of Rs 705 crore.
The company reported that the average Plant Load Factor (PLF), or capacity utilization also increased from 51% in Q1 FY2021 to 65% in Q1 FY2022.
Adani Power has not declared a dividend since January 2000.
Commenting on the performance of the company, the Managing Director, Anil Sardana, remarked that the experience of the company and its excellence in different segments has made it outperform itself consistently. The company’s location is another factor that works in its favour. He announced that Adani Power has received the Letter of Intent (LoI) for Essar Power’s MP plant that was undergoing insolvency resolution, and he believes Adani will complete the acquisition soon. “The company is in the process of acquiring and turning around its fourth power asset. In doing so, the company is focusing on different types of excellence-oriented initiatives to increase the reliability, stability, safety and profitability of the company’s portfolio,” he said.
He stated that the company is dedicated to providing benefits to its shareholders and also to create a value-addition for the society and the nation as a whole.
The company has not only managed to recoup its losses, but it has also delivered good profit margins too. With the addition of another power asset, the company may be able to meet the rising demand for electricity as the nation unlocks and gets back into normalcy.