Adani Power, the power generating arm of the Adani Group, posted consolidated net profit of Rs 8.7 crore in the three months ended Dec 31, down from Rs 218 crore a year ago.
"Operating performance during third quarter was constrained mainly due to high import coal prices and insufficient domestic fuel availability due to high power demand," the company said in a statement.
Anil Sardana, Managing Director, Adani Power Limited, said: "Adani Power Limited has consistently demonstrated its superior skills in project execution, excellence in power plant operations, and capabilities in fuel and logistics management, which has helped it turn around stressed power assets acquired under schemes of corporate debt resolution, apart from setting various benchmarks in its greenfield power plants. With resolution of most of its regulatory issues now, the Company is well placed in terms of liquidity to meet its present commitments and growth requirements. Adani Power Limited, with its strategically located and efficient power plants, is poised to gain maximum advantage from India’s growing power demand and provide stable, reliable and affordable power supply, while ensuring the betterment of communities around it.”
Fuel costs, which account for about 70% of the company's total expenses, nearly doubled to Rs 5,533 crore. Revenue from operations rose 44.8% to Rs 7,764 crore.
Shares of Adani Power have fallen nearly 34% since Jan. 24, taking the company's losses to $4.3 billion since the Hindenburg report came out, while the group's losses have ballooned to over $102 billion. On Wednesday, Adani Power's scrip on BSE closed 5% higher at Rs 181.9.
Adani Group has been hit by a market rout after US short-seller Hindenburg Research on Jan. 24 alleged it had engaged in stock manipulation and used tax havens.
The group has denied all allegations. Adani Group first said it would evaluate an independent review while reporting results for other group companies on Tuesday.
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