Adani Power's worsening losses leave analysts aghast

It exceeded Nomura's forecast by 14%.

It has been noted that once again, the net finance cost of India-based Adani Power (APL) (up 10% q-q and 10% above Nomura's forecast) dented the bottom line – normalized net loss at INR8.7bn was 14% higher vs. Nomura's forecast (INR7.6bn).

According to a research note from Nomura, this was also significantly worse off vs. consensus net loss forecast of INR5.2bn.At INR8bn, reported net loss was 5% / 43% higher than Nomura's/consensus forecast.

Meanwhile, the company's 2QFY15 normalized revenue (at INR40.6bn) and normalized EBITDA (at INR11.4bn) came in 5% / 4%, respectively, above Nomura's forecasts – the beat was driven by Additional Compensatory Tariff (ACT) booked by the company in respect of its long-term PPAs from the Tiroda facility. Normalized EBITDA was 4% below consensus.

Here's more from Nomura:

We normalize APL’s 2QFY15 reported financials for [1] prior-period ACT – as broadly suggested by the management and corroborated by unit-wise net generation data, we assume 50% of the INR1.7bn ACT booked for 1HFY15 relates to 2QFY15, the balance being extraordinary for the quarter, and [2] exchange fluctuation loss on fuel creditors (which we include in net finance cost) + MTM gain/loss on derivative instruments.

Leverage: Consolidated debt on books stood at INR471bn as of Sep-2014 (INR360bn long-term loans + INR62bn loan from the promoter + INR49bn working capital loans), up from ~INR441bn (as of Mar-2014 (INR343bn long-term loans + INR62bn loan from the promoter + INR36bn working capital loans).

Net debt/equity (excluding working capital loans and promoter loans) stood at 6.3x as of 1HFY15 vs. 5.1x as of FY14.

Follow the link for more news on

Adani Power Limited

Also Read

Vena Energy’s 53 MW Kasama Solar Project starts operation

Adani Green’s operational capacity up 34% in H1

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit

Top News

India’s Rajasthan and Gujarat need policy reforms to fuel RE transition

Some steps they could take are implementing green tariffs and setting infrastructure funds.

8 hours ago

Global clean energy tech market to hit $2t by 2035

This is fuelled by investments as countries aim to enhance energy security.The global clean energy technology market is projected to grow from $700b in 2023 to over $2t by 2035, nearing the scale of the crude oil market, according to the International Energy Agency (IEA).This growth is fuelled by significant investments in clean technology manufacturing as countries aim to enhance energy security, maintain economic competitiveness, and cut emissions. Investment is concentrated in regions with established positions in clean energy, particularly China, the European Union, the UK, and increasingly, India.Whilst the US, EU, and India have taken measures to support their clean energy sectors, China is expected to remain the world's manufacturing hub. By 2035, China's clean technology exports are forecasted to exceed $340b—comparable to projected oil export revenues from Saudi Arabia and the UAE.Southeast Asia, Latin America, and Africa contribute less than 5% of global cleantech production value, yet the IEA suggests that these areas still hold opportunities within the clean energy economy. Developing economies, for instance, could leverage competitive advantages to advance in the value chain beyond resource extraction.The IEA said Southeast Asia could become one of the most cost-effective regions for producing polysilicon and wafers for solar panels over the next decade.

9 hours ago

NSW OKs Liverpool Range Wind Farm expansion