Millennium Post

Adani Power suffers 8-fold annual loss rise

Adani Power on Monday reported Rs 586 crore net loss for the fourth quarter ended 31 March, primarily due to higher cost of imported fuel.

For the entire 2012-13, the company registered a massive loss of Rs 2,295 crore, as against a net loss of Rs 294 crore in the previous financial year.

'Net loss for the quarter ending March 2013 stood at Rs 586 crore, compared to a net loss of Rs 292 crore in the same period last year,' Adani Power said in a statement on Monday.

'(The loss) is mainly on account of higher prices of imported coal and transmission constraints,' it added.

The company's Q4 revenues grew 79 per cent to Rs 1,889 crore, from Rs 1,055 crore. Total income for the entire fiscal rose by 66 per cent to Rs 6,779 crore, compared to Rs 4,092 crore.

On standalone basis, the net loss for the year was Rs 1,952 crore, as compared to Rs 294 crore in the previous year.

'The challenges of limited resources and evacuation bottleneck have affected our profitability in the past year,' Adani Power CFO Prabal Banerji said.

'However, with FSA signing, timely delivery of the domestic coal and with fully operationalised capacity, the company is confident of posing a strong operational and financial performance to bring value to its stakeholders,' he added.

Meanwhile, power sector regulator CERC said in an order last month that the company should be compensated for increase in the cost of coal imported from Indonesia.

The company approached CERC last year seeking revision in tariff from its 1,980-mw Mundra project in Gujarat, citing increase in imported fuel cost.

CERC said that in order to offset increase in cost of imported coal, till the international price of the commodity stabilises, the company should be provided with some relief.

The package will be called 'compensatory tariff' and it could be variable in nature in proportion with the hardship that the company is suffering on account of the unforeseen events.   
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