Adani Power shares surge 5% as Q3 net profit sees multi-fold jump
Adani Power, the largest private thermal power producer in India, jumped 5% in early trade on Monday, reaching ₹570 apiece, after the company posted a robust set of numbers for the December quarter. In Q3 FY24, Adani Power reported a significant boost in net profit, soaring from ₹9 crore in the corresponding period last year to ₹2,738 crore in Q3FY24, primarily driven by increased revenues.
The company's consolidated revenue from operations witnessed a 67.32% year-on-year growth, reaching ₹12,991 crore compared to ₹7,764 crore in Q3FY23, primarily attributed to higher sales volumes. The power sale volume came in at 21.5 Billion Units (BU) in Q3FY24, up by 82% from 11.8 BU in Q3FY23 due to improved power demand and larger installed capacity.
The higher volumes were contributed by the Mundra, Udupi, Raipur, and Mahan plants, apart from the incremental contribution of the Godda power plant, which has quickly become an important part of the power supply ecosystem of Bangladesh, as highlighted by the company in its Q3 earnings report. Also Read: HDFC Bank share price gains 2% after RBI approves LIC's stake acquisition The company emphasised that the growth in domestic power sales volumes was fueled by the rising power demand across India, with Power Purchase Agreements ("PPAs") benefiting from the decline in prices of imported coal and alternative fuels.
Its EBITDA for Q3FY24 more than tripled, reaching ₹4,605 crore compared to ₹1,470 crore in Q3FY23, driven by increased revenues and lower prices of imported fuels. During the quarter, the company reduced its finance cost to ₹797 crore from ₹946 crore in Q3FY23.
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