Adani Power posts Q3 net loss of Rs 429 crore on low tariffs

Adani Power on Wednesday reported a consolidated net loss of Rs 429 crore in the third quarter ended December 2014, as lower tariff and limited domestic coal availability took a toll on the bottom line.

However, the company's consolidated net loss narrowed to Rs 545 crore in the year-ago period.

Total income climbed to Rs 5,504 crore in Q3 (October-December 2014) from Rs 4,190 crore in the corresponding year-ago period, Adani Power said in a statement.

"Our result reflects higher volume of power generation, improved PLF at all plant, relatively lower coal cost and improved operational efficiencies which were partially offset by the PPA prices being non-remunerative coupled with limited availability of coal," Adani Power CEO Vneet Jaain said.

PLF is Plant Load Factor while PPA stands for Power Purchase Agreement.

In the three-month period to December 31, 2014, the company sold 14.73 billion units of electricity, higher than 11.18 billion units sold in the corresponding period of the previous fiscal.

Adani Power Chairman Gautam Adani said the outlook for the power sector is likely to improve significantly with the policy initiatives of the government and positive macroeconomic environment.

"The revival of the power sector gives Adani Power an opportunity to participate in the consolidation of the power industry and also with thrust being given by the government towards renewable energy power generation, immense opportunities and potential for growth to the company," Adani said.

Shares of the company closed almost flat at Rs 49.80 on the Bombay Stock Exchange.