Adani Power Q2 FY24 net profit soars 848% on robust power demand, higher sales volume – EQ
In Short : Adani Power has reported a significant surge in its net profit for the second quarter of fiscal year 2023-24. The company’s profits soared by 848%, driven by robust power demand and higher sales volume. This impressive financial performance indicates Adani Power’s strong position in the market and its ability to capitalize on the increasing demand for electricity. The company’s success underscores the growing importance of the power sector in India and reflects positive economic indicators for the industry.
In Detail : Adani Power Q2FY24: The surge in net profit was driven by heightened power demand and favorable tax adjustments, and a significant tax gain of Rs 1,371 crore.
Adani Power reported an 848 per cent jump in consolidated net profit to Rs 6,594 crore in the second-quarter of FY24, compared to Rs 696 crore in the corresponding period a year ago.
The surge in net profit was driven by heightened power demand and favorable tax adjustments, and a significant tax gain of Rs 1,371 crore.
The unexpected surge in India’s power demand during the September quarter was a key driver for Adani Power’s robust performance. Several factors, including uncharacteristically dry weather, a sharp decline in hydroelectric output, and increased economic activity, contributed to this surge.
Adani Power’s consolidated average plant load factor, which represents the percentage of energy generated in relation to the installed capacity of the power plant, notably increased from 39.2 per cent to 58.3 per cent.
As a result, power sales volume surged by about 65 per cent, reaching 18.1 billion units.
This surge in power generation and sales significantly boosted Adani Power’s revenue from operations, which witnessed a substantial 84.4 per cent increase, reaching Rs 12,991 crore.
However, it’s worth noting that the company also experienced a 25.4 per cent rise in total expenses, largely due to increased fuel costs, which constituted approximately three-fourths of the overall expenses.
Adani Enterprises also reported its Q2FY24 results today, with net profit falling over 50 per cent due to weakness in the key coal division due to a fall in prices.
