The Shares of Adani Power Grows 211% In Just 6 Months

Can you believe that a stock market company which was priced at just ₹27 in March 2020. But today it’s worth more than ₹345? Yes, it’s the story of Adani Power!

Following the company’s announcement that its cumulative profit after tax (PAT) increased 17-fold to Rs 4,780 crore in the June quarter.

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Shares of Adani Power reached a record high of Rs 352.30 and rose 3% on the BSE during intraday trading on Thursday (Q1FY23). 

The electric utility firm owned by the Adani Group reported PAT of Rs 278 crore in Q1FY22.

The stock has increased by around 35% over the course of the past month, outpacing the S&P BSE Sensex’s 10% gain. 

The stock has increased by 221% over the past six months, compared to a drop of 0.1% in the market index.

The company’s consolidated total sales increased by more than 115% year over year (YoY) to Rs 15,509 crore in Q1FY23 from Rs 7,213 crore in Q1FY22.

The resurrection of the 1,234 MW Bid-2 PPA with Gujarat DISCOMs, improved merchant and short-term pricing, higher prior period recognition of revenue, and higher import coal prices all contributed to this rise in revenue, according to Adani Power.

EBITDA, which stands for profits before interest, taxation, depreciation, and amortization, increased by 227 percent year over year to Rs 7,506 crore. 

The impact of higher fuel costs, increased operating expenses brought on by the acquisition of Mahan Energen, unfavorable foreign exchange movement, and change in sales mix were partially offset by the growth, which was assisted by prior period revenue recognition, optimized tariff realization, and adjustment in sales mix.

The 1st quarter of FY 2022–23 saw an increase in electricity demand due to a widespread heatwave and a deepening of the economic recovery. 

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According to the corporation, total energy demand for the first quarter of FY23 was 404.8 billion units (BU), up 18.6% over the same period last year.

On an installed base of 13,650 MW, Adani Power’s power plants and those of its subsidiaries combined for a Q1FY23 average plant load factor (PLF) of 58.6% and total sales volumes of 16.3 BU.

In contrast, the company and its subsidiaries achieved an average PLF of 64.8% and sales volume of 16.2 BU during Q1FY22 on a base of installed capacity of 12,450 MW.

High import coal prices during the quarter had an adverse effect on Mundra and Udupi’s operating performance, while poor volumes at Raipur and Raigarh were caused by a shortage of domestic coal. 

According to the firm, this was somewhat offset by higher volumes brought on by the increased demand for power at Tiroda and Kawai as well as the inclusion of operating results from the recently purchased Mahan facility.