India's Adani Power Q1 profit down more than half as fuel costs bite

INDIAN thermal power producer Adani Power reported a 55.3 per cent drop in first-quarter profit on Wednesday (Ju 31), as higher fuel costs ate into heatwave-driven demand surge.

The Adani Group company reported consolidated net profit of 39.13 billion rupees (S$625.1 million) in the April-June quarter, from 87.59 billion rupees a year earlier.

The company’s expenses rose 13.5 per cent to 105.68 billion rupees, led by a 16.8 per cent jump in fuel costs due to higher crude oil prices. Fuel accounts for 70 per cent of Adani Total’s overall expense bill.

Power demand in India surged during the quarter due to an unusually intense summer that extended beyond the typical March-May period into June.

The company, whose power plants are spread across seven states in the country, said its June-quarter consolidated power sales volume rose about 38 per cent to 24.1 billion units.

Adani Power’s revenue rose 36 per cent to 149.56 billion rupees.

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Earlier this month, rival JSW Energy reported an 80 per cent jump in quarterly profit on strong power demand. REUTERS