Adani Power Second-Quarter Profit Soars On Demand Surge, Tax Gain

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Adani Power Second-Quarter Profit Soars On Demand Surge, Tax GainThe thermal power producer Adani Power reported a near ten-fold surge in second-quarter profit on Thursday, as it benefited from soaring power demand and a tax gain.

Shares of Adani Power, part of billionaire Gautam Adani's eponymous conglomerate, jumped as much as 7.7% to 393.4 rupees after the results. They had climbed 51% from July to September.

The company's consolidated net profit climbed to 65.94 billion rupees ($792.3 million) in the quarter, helped in part by a tax gain of 13.71 billion rupees.

It had posted a profit of 6.96 billion rupees a year ago.

India's power demand, which typically peaks during May, unexpectedly surged in the September quarter due to unusually dry weather, a sharp plunge in hydroelectric output and higher economic activity.

Last month, rival JSW Energy posted a near 83% surge in its quarterly profit.

Adani Power's consolidated average plant load factor, a percentage of energy sent out by the power plant corresponding to installed capacity, rose to 58.3% from 39.2%.

Power sales volume jumped about 65% to 18.1 billion units.

That helped Adani Power's revenue from operations surge 84.4% to 129.91 billion rupees.

Its total expenses rose 25.4%, mostly due to higher fuel costs, which made up about three-fourths of overall costs.

The Adani Group's flagship firm Adani Enterprises is scheduled to report results later in the day.