Adani Power's fourth quarter loss widens

Business Sunday 28/May/2017 13:35 PM
By: Times News Service
Adani Power's fourth quarter loss widens

Ahmedabad: Adani Power, a part of the Adani Group, posted a net loss of Rs4,960.53 crore (Rs49.60 billion) for the fourth quarter ended March 2017 as compared to a profit of Rs1,012.19 crore (Rs10.12 billion ) in the corresponding quarter of the previous year.
The company also faced a loss from operations to the tune of Rs900 crore (Rs9 billion) for the fourth quarter as compared to a profit of Rs1,085 crore (Rs10.85 billion) in the corresponding quarter last year. Consolidated total income for fourth quarter 2017 was Rs6,587 crore (65.87 billion) as compared to Rs7,757 crore (Rs77.57 billion) in the corresponding quarter in the year previous. The company sold 16.31 billion units of power in fourth quarter of 2017 as compared to 17.06 billion units in fourth quarter of 2016.
During the year, the company wrote off receivables pertaining to compensatory tariff for Mundra plant, totalling to Rs3,620 crore (Rs36.20 billion) that were recognised up to March 2016, as well as other receivables and advances totalling to Rs457 crore (Rs4.57 billion), as exceptional items, Adani Power said in a media statement on Saturday.
In April, the Supreme set aside a decision of Central Appellate Tribunal for Electricity to allow Adani Power and Tata Power to charge compensatory tariff against the increased imported coal cost from Indonesia.
"Consequent to outcome of the Supreme Court judgement, we have engaged with the stakeholders for possible remedial measures for long term sustainability of the Mundra Plant. With the Government's continuous efforts to remove the hurdles faced by the power sector, and encouraging reforms like the new coal linkage policy, we are seeing an improvement in the business environment. Allocation of linkage under the new policy will allow us to access domestic coal, and do away with the need for compensatory tariffs for our power plants going forward," Gautam Adani, chairman, of Adani Power said in a media statement.