Adani Power Announces Q2 FY25 Results

Continuing revenue grows 20% y-o-y to Rs. 28,517 Crore in H1 FY25 and 10.8% y-o-y to Rs. 13,465 Crore in Q2 FY25

Continuing EBITDA grows 38.3% y-o-y to Rs. 11,692 Crore in H1 FY25 and 24.6% y-o-y to Rs. 5,402 Crore in Q2 FY25

Continuing PBT grows 69% y-o-y to Rs. 8,020 Crore in H1 FY25 and 44.8% y-o-y to Rs. 3,537 Crore in Q2 FY25

Editor’s Synopsis

Consolidated power sale volume at 46 Billion Units (BU) in H1 FY25, up by 29.2% from 35.6 BU in H1 FY24 due to improved power demand and higher operating capacity.
Consolidated continuing total revenues higher by 20% at Rs. 28,517 Crore in H1 FY25 vs Rs. 23,767 Crore in H1 FY24; due to greater sales volumes.
Consolidated continuing EBITDA for H1 FY25 higher by 38.3% at Rs. 11,692 Crore vs Rs. 8,457 Crore in H1 FY24; due to greater volumes as well as lower fuel and operating costs.
Consolidated continuing Profit Before Tax for H1 FY25 higher by 69% at Rs. 8,020 Crore vs Rs. 4,746 Crore in H1 FY24; due to improved EBITDA and lower finance costs.
Consolidated power sale volume at 21.9 BU in Q2 FY25, up by 21% from 18.1 BU in Q2 FY24 due to improved power demand and higher operating capacity.
Consolidated continuing total revenue for Q2 FY25 higher by 10.8% at Rs. 13,465 Crore vs Rs. 12,155 Crore in Q2 FY24; primarily due to greater sales volumes.
Consolidated continuing EBITDA for Q2 FY25 higher by 24.6% at Rs. 5,402 Crore vs Rs. 4,336 Crore for Q2 FY24; due to greater sales volumes as well as lower fuel and operating costs.
Consolidated continuing Profit Before Tax for Q2 FY25 higher by 44.8% at Rs. 3,537 Crore vs Rs. 2,443 Crore for Q2 FY24; due to improved EBITDA and lower finance costs.

Ahmedabad, October 28th, 2024: Adani Power Ltd. [“APL”], a part of Adani portfolio companies, today announced the financial results for the second quarter ended 30th September 2024.

Mr. S B Khyalia, CEO, Adani Power Limited, said, “Adani Power has embarked on the next phase of its growth journey, swiftly achieving capacity expansion milestones and securing power supply agreements to ensure long-term revenue stability. The Company consistently delivers robust operating and financial performance by leveraging its inherent strengths and competitive advantages. Its diverse capabilities and financial resilience provide a solid foundation for growth, enabling it to realize its vision of supporting India's economic development with reliable, sustainable, and affordable power supplies. Additionally, we are committed to rapidly turning around our recently acquired stressed power plants by utilizing our core competencies and strengths.”

Operating performance

Parameter	H1 FY25	H1 FY24	Q2 FY25	Q2 FY24
Effective Installed Capacity	15,545	14,861	15,837	15,250
Plant Load Factor	72.3%	59.2%	66.9%	58.3%
Units Sold	46.0	35.6	21.9	18.1

MW: Mega Watts; BU: Billion Units

Power demand was flat during Q2 FY25 as compared to the corresponding quarter of FY24. This was primarily due to climatic conditions such as a delayed but prolonged rain spell affecting demand. Nevertheless, cumulative demand for FY 2024-25 till 30th September 2024 was robust with a growth of 5% over the first half of FY 2023-24. Growing peak demand has also improved power offtake from the thermal power sector to ensure uninterrupted power supply during the hours of low renewable energy generation.

Business updates

APL has achieved operating generation capacity of 17,550 MW as on 30th September 2024 with the addition of 2,300 MW operating capacities, comprising:
- 2x250 MW (500 MW) Adani Dahanu Thermal Power Station (“ADTPS”), acquired under a Business Transfer Agreement on 30th September 2024
- 2x300 MW (600 MW) Lanco Amarkantak Power Limited (“LAPL”), acquired under Corporate Insolvency Resolution Process (“CIRP”) under the aegis of the Insolvency and Bankruptcy Code (“IBC”) on 6th September 2024. LAPL has been renamed to Korba Power Limited (KPL) subsequent to the acquisition.
- 2x600 MW (1,200 MW) Coastal Energen Private Limited (“CEPL”), acquired under CIRP under the aegis of IBC on 31st August 2024. CEPL has been amalgamated at the time of acquisition with Moxie Power Generation Limited (“MPGL”), a Special Purpose Vehicle of the acquiring consortium, in which APL holds a 49% equity stake.
APL received a Letter of Award from the Maharashtra State Electricity Distribution Company Ltd. for supply of power under a 25-year, 1,496 MW (net) Power Supply Agreement, to be supplied from a new 2x800 MW (1,600 MW) Ultra-supercritical thermal power project.

Key operating highlights for Q2 and H1 FY25

Power supplied from the MPGL and KPL power plants post-acquisition has contributed to the aggregate power dispatch growth in H1 and Q2FY25. These figures do not include the operating performance of ADTPS, which was acquired on 30th September 2024.

Merchant sales witnessed substantial growth during H1 and Q2 FY25 as compared to the corresponding periods of FY24 due to strong power demand, coupled with the Company’s competitive advantages in serving this market. Power offtake under Power Purchase Agreements (“PPAs”) also witnessed significant growth during both periods owing to strong power demand from DISCOMs, supported by lower fuel costs, and full-period operation of the Godda power plant.

Financial performance

Particulars (Rs. in Crore)	H1 FY25	H1 FY24	Change +/-	Q2 FY25	Q2 FY24	Change +/-
Continuing Revenue from Operations ⁽¹⁾	27,666.01	23,236.18	19.1%	12,949.12	11,865.91	9.1%
Continuing Other Income ⁽²⁾	850.89	530.96	60.3%	516.18	289.27	78.4%
Total Continuing Income	28,516.90	23,767.14	20.0%	13,465.30	12,155.18	10.8%
Total Reported Income	29,536.79	33,044.69	(10.6)%	14,062.84	14,935.68	(5.8)%
Continuing EBITDA	11,692.28	8,456.64	38.3%	5,402.00	4,335.99	24.6%
Reported EBITDA	12,712.17	17,734.19	(28.3)%	5,999.54	7,116.49	(15.7)%
Continuing Profit Before Tax	8,019.70	4,745.64	69.0%	3,536.54	2,443.07	44.8%
Reported Profit Before Tax	9,039.59	14,023.19	(35.5)%	4,134.08	5,223.57	(20.9)%
Tax expenses / (Credit)	1,829.28	(1,330.40)	n.m.	836.56	(1,370.60)	n.m.
Profit After Tax	7,210.31	15,353.59	(53.0)%	3,297.52	6,594.17	(50.0)%

(1), (2): Continuing Operating Revenues and Continuing Other Income exclude prior period income recognition on account of coal shortfall claims and late payment surcharge.

* n.m.: not meaningful

Key financial highlights for H1 and Q2 FY 2024-25

Revenues for H1 and Q2 FY25 include the contribution of MPGL and KPL for the month of September 2024 post-acquisition. The revenues of ADTPS have not been included as it was acquired on 30th September 2024.
Continuing operating revenue growth in H1 FY25 moderated to 19.1% in comparison to volume growth due to lower blended tariff realisation following a reduction in imported coal prices. Continuing operating revenue growth for Q2 FY25 also moderated to 9.1% for similar reasons
Robust Continuing EBITDA growth of 38.3% in H1 FY25 as compared to H1 FY24 on account of a moderation in fuel costs along with a reduction in operating expenses and positive operating leverage due to higher volumes. Similarly, Continuing EBITDA growth of 24.6% in Q2 FY25 as compared to Q2 FY24 was on account of lower fuel and operating expenses, and positive operating leverage.
Reduction in finance costs despite growth in capacity due to deleveraging and lower effective interest rate.
Strong 69% growth in Continuing Profit Before Tax in H1 FY25 and 44.8% in Q2 FY25 as compared to the corresponding periods of FY24 due to improved operating profitability and lower finance costs.
Lower one-time revenue recognition of prior period items of Rs. 1,020 Crore in H1 FY25 as compared to Rs. 9,278 Crore in H1 FY24, following resolution of all major regulatory matters and realisation of outstanding dues from DISCOMs in the previous year.
Similarly, the one-time prior period revenue recognition for Q2 FY25 was Rs. 598 Crore, as compared to Rs. 2,781 Crore for Q2 FY24.
Higher tax expense including deferred tax charge totaling to Rs. 1,829 Crore in H1 FY25, whereas H1 FY24 had recognition of deferred tax credit of Rs. 1,330 Crore. Similarly, Q2 FY25 has a tax expense of Rs. 837 Crore as compared to a deferred tax credit of Rs. 1,371 Crore for Q2 FY24.

ESG Performance

APL’s water intensity performance for Q2 FY25 was 2.07 m3/MWh, which is significantly lower than the statutory limit of 3.5 m3/MWh.
APL has achieved a Disclosure Score of 95% under the Workforce Disclosure Initiative (“WDI”) and has been shortlisted for The WDI Award and Most Improved Categories. It has also earned special mentions in the Contingent Workforce Data and Workforce Action categories.