Adani Power likely to post Q4 loss at Rs 420 cr

Gujarat-based Adani Power will declare its fourth quarter (January-March) numbers on Monday. Analysts on an average expect another weak quarter from the power producer.

According to a CNBC-TV18 poll, the company is likely to post a standalone loss at Rs 420 crore in fourth quarter as against Rs 507 crore previous quarter and Rs 290 crore in a year ago period, due to pending tariff increase.

Also Read - SC approves commissioning of Kudankulam Nuclear Power Plant

Net sales are likely to jump 13.4 percent Q-o-Q and 91.6 percent Y-o-Y to Rs 1,913 crore in March quarter.

Full commissioning of the Mundra project will help the company to report strong sales on Y-o-Y basis.

Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to go up 34.3 percent Q-o-Q and 3.3 times Y-o-Y to Rs 315 crore during the quarter.

EBITDA margin is seen rising 260 basis points Q-o-Q and 690bps Y-o-Y to 16.5 percent in fourth quarter.

According to analysts, Adani Power is one of the biggest beneficiaries of declining imported coal prices and rupee appreciation, because around 65 percent of its fuel cost is in US dollar terms and around 70 percent of its debt as on March 2012 is denominated in foreign currency.

Analysts feel, with the recent ruling of the CERC, the company is certain to receive some form of ‘compensatory tariff’ over and above the existing PPA (power purchase agreement) tariff.