Adani Power surpassed state-owned power utility NTPC in terms of market capitalization (market-cap) following a sharp rally in the share price of the Gautam Adani-led Group company.
At 09:38 AM, Adani Power stood at the 35th position with a m-cap of Rs 160.4291 crore, while NTPC stood at the 37th place in the overall ranking with a market-cap of Rs 154,710 crore, BSE data showed. Adani Power also surpassed car company Mahindra & Mahindra (M&M), which had an m-cap of Rs 156,394 crore, the data showed.
In the past one month, Adani Power’s share price has risen 41 percent, compared to a 6 percent gain in NTPC’s market price. Meanwhile, benchmark S&P BSE Sensex, rallied 10 percent.
So far in calendar year 2022 (CY22), Adani Power has outperformed the market by growing 318 percent, compared to 30 percent growth recorded by NTPC. In comparison, the S&P BSE Sensex rose 1.9 percent during the period.
Adani Power reported a 17-fold jump in consolidated profit after tax (PAT) at Rs 4,780 crore in the June quarter (Q1FY23). Power utility company Adani Group has posted PAT of Rs 278 crore in Q1FY22.
“In Q1FY23, the company’s total consolidated revenue more than doubled or grew 115 percent year-on-year (YoY) to Rs 15,509 crore compared to Rs 7,213 crore in Q1FY22. This revenue increase was helped by increased PPAs. Tariffs due to higher imported coal prices higher and greater use of alternative coal, increased traders and short-term tariffs, revival of 1,234 MW Bid-2 PPAs with Gujarat DISCOMs, and higher period revenue recognition,” Adani Power said.
Earnings before interest, taxes, depreciation, and amortization (ebitda) jumped 227 percent YoY at Rs 7,506 crore. The growth was aided by prior period revenue recognition, increased tariff realization, and changes in sales mix, partially offset by the impact of higher fuel costs, increased operating expenses due to the Mahan Energen acquisition, unfavorable foreign exchange movements, etc.
A number of reforms undertaken by the Indian government have strengthened the Indian power sector. This includes fuel bonding under the Scheme for Securing and Allocation of Koyala (Coal) Transparently in India (SHAKTI) and Ujwal DISCOMS Assurance Yojana (UDAY) to catalyze the transformation of electricity distribution companies, Adani Power said in its FY22 annual report.
The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural electrification and Pradhan Mantri Har Ghar Sahaj Bijli Yojana (Saubhagya). The complement of these initiatives has been directed to increase the availability of electricity to the last person through the expanding network and policies directed at improving the resilience of distribution companies, the company said.
Adani Power further said that availability of reliable and economical power supply is the main driver of comprehensive growth. It is an important factor in improving human development index and industrial growth.
Electricity demand in India is expected to witness sustainable growth due to the government’s push towards Make-in-India, growth in disposable income and living standards as well as growing industrialization. India’s peak electricity demand is expected to be around 340 GW by 2030 compared to a peak demand of 203 GW in 2021 as per the Central Electricity Authority (CEA), the company said.