Adani Power may continue to report losses during July-September quarter despite compensatory tariff for variable charge as higher capital cost and leverage debt continue to weigh on profitability of the company, say analysts. Higher generation, higher merchant realisations and slight moderation in fuel cost may improve profitability on sequential basis.
Gujarat-based power generation company is expected to report consolidated loss of Rs 438 crore during the quarter against loss of Rs 798 crore in year-ago period, according to analysts polled by CNBC-TV18.
The company has been reporting dismal numbers for more than 11 quarters due to lack of adequate coal supply from Bunyu mines, which is forcing it to blend expensive spot coal inventory and import of coal due to limited availability of domestic coal.
Higher plant load factor at Mundra and Tiroda may support revenue that may grow 32 percent year-on-year to Rs 5,457 crore in quarter gone by.
Year-on-year numbers are not comparable fully due to Udupi inclusion in 2015.
Operating profit is seen rising 29 percent year-on-year to Rs 1,565 crore but margin may contract 50 basis points to 28.7 percent in quarter ended September 2015.
Key things to watch out for would be merchant volumes & realisations, impact of acquisitions especially on debt levels, coal supply from Bunyu & linkage coal supply for Mundra-IV/ Tiroda, and update on compensatory tariff.
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