Adani Power is slated to post third-quarter earnings and analysts would look for cues to find out if the company has made progress on the regulatory and coal supply fronts.
A CNBC-TV18 poll of analysts predicts the power firm to clock consolidated revenues of Rs 3,400 crore in the December quarter (up 11.7 percent from Rs 3,045 crore) while EBITDA and net profit/loss are seen at Rs 800 crore and negative Rs 680 crore, respectively.
The company is yet to get a formal order from the Central Electricity Regulatory Commission (CERC) on compensatory tariffs for its Mundra plant, after the Deepak Parekh committee’s proposed formula for large projects on the issue was accepted by the regulator.
Losses on the bottomline are expected to continue even as production from Adani’s Bunyu coal mines in Indonesia has picked up. Adequate domestic coal supplies for the company’s Tiroda and Mundra IV projects have significantly reduced import requirements and improved plant load factors, resulting in project level profits.
Also read: Here's how govt plans to de-allocate coal blocks
Continued spot purchases for other Mundra projects and the Kawai plant to honour the power purchase agreement (PPA) commitments will translate into overall losses
Despite eight consecutive quarters of losses, the stock trades at expensive valuations when compared to peers -- it trades at 2 times price-to-book-value and 7 times EV-EBITDA of FY15 estimates.
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