India's Adani Power posts fall in Q2 profit before tax on muted power demand

The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad · Reuters

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October 28 (Reuters) - Indian thermal power producer Adani Power reported a more than 20% fall in second-quarter profit before tax on Monday as demand remained muted.

The company, part of billionaire Gautam Adani-led Adani Group, said its consolidated profit before tax fell to 41.34 billion rupees ($491.9 million) in the three months ended Sept. 30 from 52.24 billion rupees a year earlier.

India's electricity demand for the July-September period was down as above-normal rainfall resulted in lower temperatures - the country's power demand typically peaks in May.

Power generation in the quarter increased 1.1% year-on-year - reaching 468 billion units - due to lower irrigation and cooling needs.

Revenue rose about 2.7% to 133.39 billion rupees.

Power generation and revenue had risen 15% and 84% year-on-year, respectively, in the September 2023 quarter due to unusually dry weather.

Adani Power's consolidated net profit halved to 33.31 billion rupees in the reported quarter from 65.94 billion rupees a year ago as it benefitted from a tax gain of 13.71 billion rupees last year.

Last week, peer JSW Energy reported a marginal rise in its quarterly profit while NTPC posted a decline in its adjusted profit due to weak seasonal power demand.

Adani Power's shares settled 1% higher, ahead of earnings.

($1 = 84.0480 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman)