Adani Power second quarter profit falls 99% on poor sales
Adani Power’s consolidated net profit for the September quarter of 2019 got decimated on poor sales and operating margins, missing Bloomberg analysts’ estimate of Rs. 33.25 crore net profit. The company on Wednesday reported a 99% year-on-year (y-o-y) fall in net profit to Rs. 3.88 crore, even as revenue from operations fell 17% on year to Rs. 5,916 crore.
The power generator’s earnings before interest, tax, depreciation and amortisation (Ebitda) for the September quarter fell 52% on year to Rs. 1,348 crore, while operating margins for the quarter fell 891 basis points to 22.8%. The drop in operating profit and operating margins was triggered by lower volume and poor realisations during the quarter. The company said its average plant load factor (PLF) for the September quarter fell to 63% from 65% a year ago, while volumes dropped to 13.6 billion units from 14.6 billion units a year ago. The drop in performance has been attributed to lower grid demand and higher renewable energy generation during the July-September quarter.
