Adani Power is expected to report a consolidated loss of Rs 434 crore during October-December quarter as against loss of Rs 545 crore in the year-ago period and loss of Rs 799 crore in the previous quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Total income of the power generation company is seen going up 25.3 percent (up 26.6 percent Q-o-Q) to Rs 5,252 crore in the third quarter of FY15 from Rs 4,190 crore in same quarter last fiscal.
Core operating profit (ex-forex) may surge 67.2 percent year-on-year (up 34.3 percent sequentially) to Rs 1,641 crore and margin may expand 780 basis points (up 180 bps Q-o-Q) to 31.2 percent in the quarter gone by.
Analysts expect volumes to increase by 31 percent Y-o-Y due to 17 percent increase in generation capacity and 770 bps improvement in plant load factor (PLF).
Analysts expect higher revenues on account of higher expected PLF at 80 percent versus 75 percent in Q3FY14, receipt of tariff hike for Kawai and Tiroda; and commissioning of Tiroda IV (660 MW) and Kawai 660 MW (which may lead to higher generation).
They expect margins to improve due to fall in imported coal prices, compensatory tariff hike at Tiroda & Kawai and higher PLFs.
Losses may also reduce on a Y-o-Y basis on lower fuel cost estimate (imported fuel) and improvement in PLF at Mundra (86 percenet versus 59 percent in Q2), Tiroda and Kawai,
Things to watch out for in the medium term for Adani Power: Coal auction outcome and its impact, SC/APTEL’s final order on Mundra compensatory tariff, coal supply from Bunyu, linkage coal supply for Mundra-IV/Tiroda, and permanent linkage for Tiroda II and Kawai.
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