28 October,2024 04:31 PM IST | Mumbai | mid-day online correspondent
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Adani Power has reported a significant decline in net profit for the second quarter of the current fiscal year, with consolidated net profit dropping by 50% to â¹3,297.52 crore compared to â¹6,594.17 crore in the same quarter last year. According to the company's regulatory filing on Monday, the reduction in net profit is attributed to lower income and increased tax expenses.
The fall in revenue is partly due to a reduction in one-time revenue recognition from prior periods. The company reported a â¹598 crore one-time revenue gain for Q2 of FY25 (July-September 2024), compared to â¹2,781 crore during the same period last year. Adani Power further explained that total one-time revenue recognition in the first half of FY25 (April-September 2024) was â¹1,020 crore, significantly lower than the â¹9,278 crore recorded in H1 FY24. This decline was due to the resolution of major regulatory issues and the realisation of outstanding payments from power distribution companies (discoms) achieved in the previous fiscal year.
In terms of tax expenses, Adani Power reported a total of â¹837 crore for Q2 of the current fiscal, in contrast to a deferred tax credit of â¹1,371 crore for the same period a year earlier. For the first half of FY25, tax expenses reached â¹1,829 crore, which includes a deferred tax charge, whereas H1 FY24 saw a deferred tax credit of â¹1,330 crore.
The company's total income for the quarter dropped to â¹14,062.84 crore from â¹14,935.68 crore in the previous year, indicating a dip in revenue amidst challenging financial conditions. Despite these setbacks, CEO S.B. Khyalia emphasised the company's commitment to expansion and stabilisation, noting that Adani Power is achieving rapid capacity growth and securing long-term power supply agreements. He stated that the company is focused on swiftly reviving recently acquired underperforming power plants by leveraging its core capabilities.
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In addition, the board of directors has approved a proposal to raise up to â¹5,000 crore through the issuance of secured, rated, listed, redeemable non-convertible debentures. This fundraising effort will be split equally, with â¹2,500 crore set for a public issue and the remaining â¹2,500 crore raised through private placements in one or more tranches. A management committee has been authorised to oversee and implement the fundraising initiative.
According to PTI, Adani Power reported a 21% increase in consolidated power sales volume for Q2 FY25, reaching 21.9 billion units (BU) compared to 18.1 BU in the same period last year. This rise was largely driven by an uptick in power demand and enhanced operating capacity.
(With inputs from PTI)
