Adani Power Limited (APL) has announced its financial results for the first quarter, demonstrating resilience in the face of challenging market conditions. The company reported a total revenue of Rs 14,167.00 crores, an EBITDA of Rs 5,744.00 crores, and a profit after tax of Rs 3,305.00 crores for Q1.

Power Supply and Market Dynamics

Despite a 1.6% decline in all-India power demand due to an early monsoon, APL managed to increase its power supply by 1.6% year-on-year, delivering 24.6 billion units of electricity. This growth was supported by the additional 2,300 MW capacity acquired last year and higher short-term sales in bilateral and exchange markets.

Financial Performance

The company's financial results reflect its ability to navigate market volatility:

While the revenue remained stable compared to the previous quarter, it saw a slight decrease year-on-year due to softer merchant tariffs and lower imported coal prices. The company's merchant realization stood at Rs 6.51 per kWh, down from Rs 7.60 in the same quarter last year.

Operational Highlights and Expansion

Adani Power continued its expansion strategy by acquiring Vidarbha Industries Power Ltd, adding 600 MW of capacity to its portfolio. This acquisition is expected to strengthen the company's presence in Maharashtra and provide further growth opportunities.

The company has made significant progress in its ongoing capacity expansion projects:

• Mahan Phase-II (Madhya Pradesh): Over 66% execution completed
• Raipur Phase-II (Chhattisgarh): Crossed 25% execution
• Raigarh Phase-II: Exceeded 20% execution

Additionally, APL received environmental clearance for the Korba Phase-II expansion revival, which will add 1,320 MW of capacity upon completion.

Strategic Developments

In a significant move, Adani Power signed a long-term Power Purchase Agreement (PPA) with Uttar Pradesh for 1,600 MW gross capacity at a tariff of Rs 5.39 per unit. This brings the company's fresh capacity tie-up to 4,520 MW, aligning with its growth strategy.

The company also reported improved financial health, with the receipt of over $500 million in payments from the Bangladesh Power Development Board, bringing outstanding receivables to near-normal levels.

Debt Management and Future Outlook

As of June 30, APL's total debt stood at Rs 44,372.00 crores. The company repaid Rs 2,579.00 crores of unsecured perpetual securities during the quarter, demonstrating its commitment to debt reduction.

Looking ahead, Adani Power remains optimistic about the power sector's growth prospects in India. The company has secured equipment supplies for 11.2 GW of new capacity addition, positioning itself to capitalize on the government's target of adding 80-95 GW of thermal power capacity to meet growing energy demands.

S.B. Khyalia, CEO of Adani Power, commented on the results, stating, "Adani Power has again demonstrated its competitive strength and the resilience of its business model. We are confident that the path to a secure and sustainable energy future passes through the thermal power landscape, and we are well-positioned to play a key role in attaining the country's targeted capacity addition."

As India's power demand continues to grow, Adani Power's strategic investments and operational efficiency are likely to play a crucial role in meeting the nation's energy needs while delivering value to its stakeholders.

Adani Power Limited , India's largest private sector thermal power generator, has secured approval to construct a 2,400 MW ultra-supercritical thermal power plant in Bihar, marking a major development in the state's energy sector.

Project Details

The project, which involves an investment of approximately ₹24,000.00 crore ($3.00 billion), will be located in Village Pirpainti, Bhagalpur District, Bihar. Adani Power received a Letter of Intent (LoI) from Bihar State Power Generation Company Limited (BSPGCL) for the long-term procurement of electricity on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL).

Key Features of the Power Plant

Project Timeline

The project has an ambitious timeline for completion:

• Unit 1: 48 months from the appointed date
• Unit 2: 54 months from the appointed date
• Unit 3: 60 months from the appointed date

Economic Impact

This large-scale project is expected to have a significant economic impact on the region:

• Direct and indirect employment generation of 10,000 - 12,000 jobs during the construction phase
• Approximately 3,000 jobs once the plant becomes operational

Competitive Edge

Adani Power emerged as the lowest bidder in a tightly contested tender process, securing the project with a final supply price of ₹6.08 per kWh. This competitive pricing is expected to provide affordable power to the state utilities.

Management's Perspective

S.B. Khyalia, Chief Executive Officer of Adani Power, expressed enthusiasm about the project, stating, "We are pleased to have won the bid to develop and operate a 2,400 MW thermal power project in Bihar. We will set up a new greenfield plant with an investment of ~$3 billion, which is expected to further aid industrialization in the state. Our plant will be an advanced, low-emission Ultra-supercritical and will supply dependable, competitively priced, and high-quality power to the state."

Next Steps

Adani Power anticipates receiving the Letter of Award (LoA) in due course, following which a Power Supply Agreement (PSA) will be executed with the State Utilities.

This project represents a significant expansion of Adani Power's portfolio, which currently includes an installed thermal power capacity of 18,110 MW spread across twelve power plants in various Indian states. The new Bihar plant is set to play a crucial role in addressing the state's power needs and supporting its industrial growth.

As India continues to balance its energy needs with environmental concerns, the use of ultra-supercritical technology in this project underscores the shift towards more efficient and potentially less polluting thermal power generation methods.