Adani Power posts loss on fuel costs, rupee fall

The company depends entirely on imports for its current coal requirements.

India holds 10 percent of the world's coal reserves but has struggled to meet power producers' needs because of stagnating output due to delays in environmental clearance and land acquisition and poor investment in mining, forcing generators to import.

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Adani Power posted a mark-to-market loss of 2.05 billion rupees on derivatives during the quarter. The rupee fell 7.7 percent against the dollar in the period and has rebounded nearly as much in January.

Since the rupee has recovered since December-end, almost 90 percent of these losses have been reversed, Chief Financial Officer Prabal Banerji told Reuters.

"If rupee appreciates further, we will actually be in gains," said Banerji.

Increased sale of power in the open market - 30 percent of total output in the quarter from 10 percent a year ago - and a firmer merchant tariff raised the average realisation to 3.51 rupees per kilowatt-hour from 2.93 rupees a year ago.

The merchant tariff, which refers to prices outside long-term agreements, rose to 4.09 rupees per unit in the quarter from 3.88 rupees in the year-ago period.

Adani currently operates capacity of 3,300 megawatts, and will add about 2,000 MW by March, Banerji said.

Adani Power, valued by the market at $3.6 billion, ended 2 percent higher at 82.05 rupees on Monday in a Mumbai market that closed 0.58 percent higher.