Adani Power jumped over 3 percent on the November 3 morning, a day after the company reported a net profit of Rs 6,594 crore in the September quarter, up more than eight times from the year-ago period. Revenue rose 84 percent.
The massive rise in net profit was on account of a one-time gain of Rs 1,371 crore as tax credit.
"This increase in revenue was a result of greater sales volumes including the contribution of the Godda power plant and higher merchant sales,” Adani Power said on November 2.
Lower import coal prices helped in higher offtake of power under import coal-based power purchase agreements (PPAs) of Mundra and Udupi plants. Tariffs under these PPAs were determined according to approved regulatory processes and tracking international coal prices, it said.
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Adani Power and its subsidiaries achieved an average plant load factor (PLF) of 58.3 percent and a power sales volume of 18.1 billion units on improved power demand and higher operating capacity.
Its EBITDA jumped more than 200 percent YoY to Rs 4,336 crore, mainly on account of lower fuel costs, higher merchant tariffs and the inclusion of the Godda power plant.
Following the announcement, Adani Power surged nearly 7 percent before ending the day at Rs 372.95 apiece.
Adani Power, which fell to a 52-week low of Rs 132.40 in February following the Hindenburg report, has gained more than 66 percent in the past six months.
The report by the American shortseller accused the Adani group of stock manipulation and financial irregularities, charges which were denied by the ports-to-power conglomerate.
Adani Power is trading nearly 6 percent below its 52-week high of Rs 409, hit on September 12, 2023. Promoters decreased their holdings in the company in the September quarter to 70.02 percent from 74.97 percent in the June quarter.
Also Read| Adani Enterprises stock rises even as Q2 net profit halves, revenue declines
Adani Group stocks in green
Other Adani Group stocks were also trading in green. Adani Green Energy was up over a percent amid reports that the renewables firm was in talks with a group of foreign lenders to borrow $1.8 billion. A Bloomberg report said the funds would be used for the expansion of firm's solar and wind projects.
The details were confidential at this stage. The banks involved in these negotiations included Barclays Plc, BNP Paribas SA, Deutsche Bank AG, First Abu Dhabi Bank PJSC, Rabobank, and Standard Chartered Plc, the report said.
Adani Wilmar shares were also up a percent as Nuvama Institutional Equities retained a "buy" rating on the stock. The brokerage, however, cut its target price to Rs 515 from Rs 600 following a weak set of quarterly results. A steady-state run rate is likely in the second half of FY24, like in the past, while margins would improve, it said.
Adani Energy Solutions, Adani Green Energy, Adani Ports, Adani Enterprises, ACC and NDTV were also trading up to 2 percent higher amid positive market sentiment. Ambuja Cement was the only Adani Group stock to trade a tad lower.
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