Adani Power Limited (APL), India's largest private thermal power producer, has announced strong financial results for the second quarter, demonstrating resilience amid challenging weather conditions that impacted power demand growth.

Key Highlights

• Consolidated power sales volume increased by 7.4% to 23.7 Billion Units
• Total revenue rose to ₹14,308 crore, up 1.74% year-on-year
• EBITDA remained stable at ₹6,001 crore
• Profit After Tax stood at ₹2,906 crore

Operational Performance

Despite slower power demand growth due to prolonged monsoons, APL managed to increase its consolidated power sale volume to 23.7 Billion Units, up from 22.0 Billion Units in the same quarter of the previous year. This 7.4% growth was achieved despite weather-related disruptions and a high base effect from the previous year.

Financial Performance

APL's financial results reflect its operational efficiency and competitive advantages:

The company's revenue grew despite lower merchant tariffs and import coal prices. EBITDA remained stable year-on-year, showcasing APL's ability to maintain profitability in challenging market conditions. The slight decrease in Profit After Tax was primarily due to higher depreciation and deferred tax expenses.

Strategic Developments

APL has made significant strides in expanding its market presence:

1. Secured new Long Term Power Purchase Agreements (PPAs) totaling 4.5 GW:

   • 2,400 MW from Bihar DISCOM
   • 1,600 MW from Madhya Pradesh DISCOM
   • 570 MW from Karnataka DISCOM

2. Acquired 600 MW Vidarbha Industries Power Limited, increasing total capacity to 18,150 MW

3. Completed a 1:5 share split, enhancing stock liquidity

Future Outlook

APL has revised its capacity expansion target to 41,870 MW by FY 2031-32, with 23,720 MW of new projects in the pipeline. The company has already secured land and placed equipment orders for this expansion, positioning itself to meet India's growing power demand efficiently.

Mr. S B Khyalia, CEO of Adani Power Limited, commented, "We are steadily expanding our presence in the market by securing another 4.5 GW of new long-term PPAs under the SHAKTI scheme. Our strong profitability and liquidity position us well to achieve our enhanced capacity expansion goal of 42 GW by 2031-32."

As India's power sector continues to evolve, Adani Power's strategic initiatives and robust financial performance indicate its readiness to play a pivotal role in meeting the nation's energy needs while delivering value to its stakeholders.

Adani Power Limited (APL), a key player in India's power sector, has announced a significant corporate restructuring initiative. The company's Board of Directors has approved a scheme to amalgamate ten of its wholly owned subsidiaries, marking a strategic move towards streamlining operations and enhancing efficiency.

Subsidiaries Involved in the Amalgamation

The amalgamation plan encompasses the following wholly owned subsidiaries of Adani Power Limited:

1. Adani Power Dahej Limited (APDL)
2. Kutchh Power Generation Limited (KPGL)
3. Resurgent Fuel Management Limited (RFML)
4. Mahan Fuel Management Limited (MFML)
5. Orissa Thermal Energy Limited (OTEL)
6. Korba Power Limited (KPL)
7. Anuppur Thermal Energy (MP) Private Limited (ATEMPPL)
8. Mirzapur Thermal Energy (UP) Private Limited (MTEUPPL)
9. Emberiza Infra Park Limited (EIPL)
10. Vidarbha Industries Power Limited (VIPL)

Key Details of the Amalgamation Scheme

• Appointed Date: The scheme sets April 1, 2025, as the appointed date for the amalgamation.
• Regulatory Approval: The amalgamation is subject to necessary statutory and regulatory approvals, including the approval of the National Company Law Tribunal (NCLT).
• Share Exchange: As all the subsidiaries are wholly owned by Adani Power Limited, no new shares will be issued as part of the amalgamation process.
• Asset and Liability Transfer: The entire assets and liabilities of the transferor companies will be transferred to and recorded by Adani Power Limited at their carrying values.

Strategic Rationale

The amalgamation aims to achieve several strategic objectives:

1. Enhanced Scale and Integration: The move is expected to result in improved size, scalability, and integration of operations.
2. Operational Efficiency: The consolidation is likely to lead to better control, cost optimization, and more efficient resource utilization.
3. Financial Strength: The amalgamation is anticipated to create a more robust organization with greater financial strength and flexibility.
4. Improved Returns: The restructuring is designed to achieve better long-term financial returns by building a more resilient and focused organization.

Impact on Shareholders

The amalgamation will not result in any change to the shareholding pattern of Adani Power Limited. As the transferor companies are wholly owned subsidiaries, their shares held by Adani Power Limited will be cancelled upon the scheme becoming effective.

Regulatory Process

The scheme will now proceed through various regulatory stages, including approvals from shareholders, creditors, and the NCLT. The timeline for completion will depend on the regulatory processes involved.

This strategic move by Adani Power Limited reflects the company's focus on consolidating its position in the power sector and optimizing its corporate structure for improved performance and shareholder value.

Note: The implementation of the scheme is subject to regulatory approvals and other statutory compliances.