Private power producer Adani Power Limited on Thursday informed that the company's standalone net losses widened to Rs 516 crore for the first quarter ended June 2017, as against Rs 207 crore reported in the corresponding quarter a year ago.

The company's standalone total income stood at Rs 2,819 crore for the quarter under review, up from Rs 2,810 crore in the same period last year.

APL has been facing the heat of the higher input costs due to costly imported coal at its Mundra Power Plant in Kutch. The Group chairman Gautam Adani maintained that company was in talks with stakeholders to identify the remedial measures.

On the Mundra Plant, Adani said, "We continue to engage with various stakeholders for the Mundra Plant and remain fully committed to identifying possible remedial measures for its long term sustainability."

On consolidated basis too, company's faced escalating losses at Rs 454 crore for the first quarter of the current fiscal as against the net loss of Rs 233 crore in the same quarter last year. Total consolidated income increased to Rs 5,648 crore as against Rs 5,418 crore last year. The operationalisation of 440 MW PPA in the Tiroda plant, as well as higher tariffs due to application of Change in Law clauses in some PPAs helped improve the revenues.

However, APL maintained that consolidated EBITDA for the quarter fell by 7.86 per cent to Rs 1,618 crore from Rs 1,756 crore in first quarter of 2017-18 "mainly due to higher fuel costs on account of increase in coal costs over the corresponding quarter of the previous year," a company statement said.

Adani, however, expressed satisfaction over the progress in key reforms initiated by the Government.. "for coal allocation through the SHAKTI Policy, as well as the potential for improvement in financial health of DISCOMs through the UDAY Policy. Under the aegis of SHAKTI Policy, we hope to receive linkages for our PPAs of Tiroda and Kawai plants that do not have linkages presently, which will do away the need for importing coal."

APL further informed that Average Plant Load Factor (PLF) achieved during the first quarter was 63 per cent, lower as compared to 66 per cent achieved in same period last year. This drop was on account of customer back down as well as maintenance-related shutdowns, it said.

In June, the board of Adani Power had approved slump sale plans for its power generating plant at Mundra in Gujarat as part of a restructuring exercise and separating its investment activity from the generating asset. It aims to attract funding in the separated entity for capacity expansion.

The company had offered 51 per cent stake in the said power project in Mundra for Re 1 to the Gujarat government's power utility Gujarat Urja Vikas Nigam Limited (GUVNL) after the Supreme Court in April, denied the company the right to charge compensatory tariff for its power plants due to higher international coal prices.

Related Topics