Indian thermal power firm Adani Power reported a 5% fall in fourth-quarter profit on Wednesday, hurt by lower tariff realisations and higher operating costs.
The company, part of the billionaire Gautam Adani-led Adani Group, said its consolidated profit fell to 25.99 billion rupees ($307.2 million) in the three months ended March 31 from 27.37 billion rupees a year earlier.
Its power sale volumes rose 18.9% year-on-year in the quarter, but revenue grew a modest 6.5% to 142.37 billion rupees due to weaker merchant tariffs.
The company said the supply of power outpaced demand, leading to a fall in merchant tariffs during the quarter, which resulted in lower realisations.
Merchant tariffs refer to the price at which electricity is sold in the open market.
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Adani Power did not disclose the extent to which merchant tariffs fell during the quarter compared to a year earlier.
The company also said that it faced higher operating expenses during the quarter due to three newly acquired plants in the September quarter last year.
Adani Power’s total expenses rose 9.2% for the fourth quarter.
Peers NTPC and JSW Energy are yet to report their quarterly results.
Adani Power’s shares settled 3% lower after the results.
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