Adani Power up on outstanding Q2 results; other Adani equities also higher

1. ADANI POWER UP ON OUTSTANDING Q2 RESULTS; OTHER ADANI EQUITIES ALSO HIGHER

2. Adani Power, which plunged to a 52-week low of Rs. 132.40 on the Hindenburg report in February, has rebounded more than 66 percent in the previous six months despite the Adani Group controversies. Adani Power rose more than 3% on November 3rd, a day after the business posted a net profit of Rs. 6,594 crore in the September quarter, up more than eight times from the previous year. Revenue increased by 84%. The enormous increase in net profit was due to a one-time tax credit benefit of Rs. 1,371 crore. Adani Power said on November 2nd that the rise in income was due to higher sales volumes, including the contribution of the Godda power plant and higher merchant sales. Lower import coal prices increased power consumption under import coal-based power purchase agreements (PPAs) for Mundra and Udupi facilities. According to the Group, tariffs under these PPAs were decided using acceptable regulatory methods and monitoring international coal prices.

3. To sustainably deliver a steady, dependable, and economical power supply, the company's established competencies are being enhanced by deploying digitalization, analytics, and cutting-edge technology. Despite the Adani Group controversies, the firm and its subsidiaries achieved an average Plant Load Factor (PLF) of 58.3 percent and a power sales volume of 18.1 billion units in Q2 FY24, compared to 39.2 percent and 11 billion units in Q2 FY23. The stock was last trading 7.71% higher at Rs. 393.15. ADANI POWER AND ITS SUBSIDIARIES OBTAINED PLF OF 58.3% ON AVERAGE

4. Adani Group stocks in Green According to Bloomberg, the cash would be used to expand the firm's solar and wind projects. At this point, the specifics were kept private. According to the article, the banks participating in these conversations were Barclays PLC, BNP Paribas SA, Deutsche Bank AG, First Abu Dhabi Bank PJSC, Rabobank, and Standard Chartered Plc. Adani Wilmar shares rose 1% as Nuvama Institutional Equities maintained its "buy" rating. Following a poor set of quarterly results, the brokerage reduced its target price to Rs. 515 from Rs. 600. According to the company, a steady-state run rate is envisioned in the second half of FY24, while margins would rise. Despite the Adani Group controversies, Adani Energy Solutions, Adani Green Energy, Adani Ports, Adani Enterprises, ACC, and NDTV were all trading up to 2% higher amid a good market mood.

5. The company's revenue from operations increased significantly as well The company's operating income increased significantly, totalling Rs. 12,990.58 crores, representing an 84.42% rise over the same quarter last year, when it was Rs. 7,043.77 crore. It should be noted that this income number includes one-time adjustments due to a domestic coal deficit of Rs. 1,125 crore. Despite the ongoing Adani Group controversies, income has improved due to various causes, such as more significant sales volumes, contributions from the Godda power project, and higher merchant sales. Adani Power stated that its ability to capitalize on decreased import coal costs was critical in increasing power offtake under import coal-based Power Purchase Agreements (PPAs) for the Mundra and Udupi facilities. Tariffs under these agreements are set by recognized regulatory mechanisms based on international coal prices. In addition to operational revenue, the business recorded Rs. 1,945 crore in other quarterly income. This amount includes one-time adjustments for prior period items, namely Rs. 1,656 crore in carrying costs and late payment fees.