Adani Power Limited Q2 profit jumps 40 pc at Rs 177 crore

AHMEDABAD: Adani Power Limited ( APL), a subsidiary of Adani Group, today reported 40 per cent jump in the net profit at Rs 177 crore for the quarter ended September, on the back of robust merchant power sales.

The company's net profit had stood at Rs 126 crore in the corresponding period a year ago.

The company sold around 1 billion units of merchant power at a price of Rs 4.70 per unit in the second quarter.

"The merchant power sale price was very robust at 4.70 per unit, which has improved the average realisation on power from Rs 2.96 kWh in the same quarter last year to Rs 3.62 kWh this quarter," Adani Power CFO Prabal Banerji told newsmen.

The company sold total of 2.95 billion units in the quarter ended September, as compared to 1.34 billion units in the corresponding period a year ago.

Net sales jumped 171 per cent at Rs 1,072 crore, against Rs 395 crore in the same period a year ago.

The company has loan outstanding of around Rs 24,000 crore in books. "The interest cost of company stood Rs 135 crore in the quarter ended September against Rs 90 crore in the same period a year ago," Banerji said.

"The company has undertaken refinancing for its phase-III projects, which include a combination of 2x 660 MW plus transmission lines, valued at over Rs 8,100 crore," Banerji said.

"Refinancing means once the commission date (CoD) has happened we go to the banks outside to raise money at a lower rate of interest and pay off the previous lenders, and that shall save us around 200 to 250 basis points."

"Of the over Rs 8,100 crore, 80-85 per cent of loan has been raised through this refinancing."