Adani Power shares hit lower price band on Thursday after the company reported a poor set of numbers in the December 2022 quarter (Q3 FY23). The Adani Group company is also facing the threat of likely reduction in weightage by MSCI, which is weighing on investor sentiment.
Adani Power reported a 96 per cent fall in the net profit at Rs 8.77 crore in the December 2022 quarter, which was Rs 218.49 crore in the same quarter a year ago. However, It reported a 45 per cent rise in revenue from operations at Rs 7,764.41 crore against a revenue of Rs 5,360.88 crore in the year-ago period.
Adani Power clocked a marginal decline in the consolidated EBITDA at Rs 1,996 crore in Q3 FY23, which was Rs 2,003 crore for Q3 FY22 which was constrained mainly by an impact of higher fuel costs.
Shares of Adani Power tumbled 5 per cent, locked in seller’s circuit, at Rs 172.90 on Thursday. The scrip had settled at Rs 182 on Wednesday after rising 5 per cent. The scrip has hit lower circuit levels in 12 out of 13 sessions.
Adani Power’s shares are down 42 per cent in the last year 2023 so far but have delivered a return of more than 60 per cent in the last one year. The stock has surged 410 per cent in the last five years.
Adani Power reported a 1,960 per cent rise in the net profit at Rs 5,484.16 crore for the nine months ended on December 31, 2022, compared to a profit of Rs 266.11 crore in the year-ago period. Its consolidated revenue from operations jumped 67 per cent to Rs 28,531.24 crore for the given period.
Adani Power said the growth in sales was mainly due to higher regulatory income, increased operating capacity, and improved tariff realization under long-term Power Purchase Agreements. A majority of Adani Power’s revenues come from power generation and related activities.
Other than this, index provider MSCI (Morgan Stanley Capital International) said certain investors in Adani Group securities should no longer be designated as free float, and it is reviewing this status. Adani Power is also a part of the MSCI India index with a weightage of 18 basis points.
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