Adani Power reported a 50 percent decrease in its consolidated net profit to reach OMR 3,297.52 crore for the September quarter compared to the same period last year. This decrease in the net profit can be directly correlated to the decreased income and higher taxes. As per a BSE statement, the company has reported a consolidated net profit of Rs 6,594.17 crore for the quarter that ended in September 2023.
Following the resolution of all significant regulatory matters and the realization of outstanding dues from discoms (power distribution companies), the company explained that the first half of FY25, i.e., April-September 2024 saw a lower one-time revenue recognition of INT 1,020 crore for prior period items compared to INR 9,278 crore in last year.
In addition, Adani Power also highlighted that in Q2 FY25 (July-September 2024), the one-time prior period revenue recognition stood at INR 598 crore. While, if we look at the Q2 FY24 report, it was INR 2,781 crore. The company's tax expenses were greater in H1 FY25, with a deferred tax charge of INR 1,829 crore, while in H1 FY24, a deferred tax credit of Rs 1,330 crore was recognized.
Additionally, the company's tax expense for the second quarter of the current fiscal year stood at INR 837 crore. While on the other hand, the deferred tax credit for the same period last year was INR 1,371 crore. With this, the company's total revenue plunged to Rs 14,062.84 crore in the current quarter from Rs 14,935.68 crore in the same time last year.
S B Khyalia, CEO of Adani Power, highlighted, "Adani Power has entered the next stage of its growth journey, rapidly reaching capacity expansion milestones and securing power supply agreements to ensure long-term revenue stability."
Furthermore, Khyalia also added that the company is dedicated to leveraging their core capabilities and competencies to quickly turn around the recently acquired challenged power units.
The issuance of secured, graded, listed, redeemable, and non-convertible debentures with a maximum value of INR 5,000 crore - up to INR 2,500 crore through public issuance and up to INR 2,500 crore through private placement - in one or more tranches has been authorized by the board of directors.
The management committee has been given authority by the board to authorize, carry out, and carry out operations related to the issue, among other things. The consolidated power selling volume in Q2FY25 increased by 21% to 21.9 BU (billion units) from 18.1 BU in Q2 FY24. This is due to the increased operating capacity and better power demand.
