Wednesday, May 5, 2010


4QFY10 PAT ahead of expectation on other income — Adani Power’s 4QFY10 PAT at Rs983mn, up 36% QoQ, was ahead of CIRA expectations of Rs732mn on Rs319mn of other income which we had expected the company to capitalize in line with what was done in 3QFY10.

ASPs lower than expected — ASPs in 4QFY10 at Rs3.27/kWh were down 15% QoQ. If one assumes merchant sales at Rs6/kWh and GUVNL sales at Rs2.81/kWh then one can back calculate and find out that almost 76.5% of the FY10 sales has been to GUVL and 23.5% of the FY10 sales has been merchant.

Sell: Other Income Leads To Profit Beat

Lower fuel costs and higher O&M costs — 4QFY10 fuel costs at Rs1.05/kWh per unit generated were down 27% YoY which is a very big positive but this to some extent has been negated by higher O&M costs of Rs0.23/kWh per unit sold. As a consequence, the EBITDA per unit sold is Rs1.91/kWh which is below CIRA expectations of Rs2.14/kWh

Update on tax rates and SEZ duty — Effective tax rate is down to 11% in 4QFY10, from 22% in 3QFY10, on account of commissioning of unit 2 of 330MW. Our discussion with the company suggests it has not provided for the 16% SEZ duty in FY10 as the regulations are not clear yet.

2 more units set to be commissioned — Adani Power has commissioned 2 units of 330MW each in Mundra so far. The company was set to commission unit 3 in April 2010, followed by unit 4 in June 2010.

To read the full report: ADANI POWER