Adani Power shares have been on an incredible upward trajectory, with a rocket-like surge in their value. The company’s shares traded at INR 389.50, marking a 4% increase on Friday.
The remarkable quarterly results of Adani Power have contributed to this continuous surge, with the stock price rising by 25% over the past seven business days and an astonishing 66.03% over the last six months. Let’s delve into the reasons behind this impressive performance and the company’s plans.
Adani Power’s Strong Quarterly Results
- After the release of robust quarterly results, Adani Power’s shares have been consistently rising.
- In the second quarter of the ongoing fiscal year, the company’s pure profit has surged more than nine times, reaching INR 6,594 crores.
- In the same quarter last year (July-September 2022), Adani Power’s net profit was INR 696 crores.
- This remarkable increase in profit can be attributed to improved Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), one-time exceptional income, and tax relief.
Company’s Strategy
- Adani Power revealed that it had an 848% surge in net profit for the second quarter of the fiscal year, reaching INR 6,594 crores.
- This is a significant improvement compared to the same period in the previous year when the net profit was INR 696 crores.
- The surge in revenue in the July-September quarterly period of the current fiscal year stood at 61%, reaching INR 12,155 crores.
- In contrast, the consolidated revenue in the same period in the previous year was INR 7,534 crores.
- Adani Power attributes the rise in revenue to an increase in the quantity of electricity sold.
- The company, which has an established thermal power capacity of 15,210 MW, operates eight power plants across Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand.
Recent Performance of Adani Power Shares
- The Adani Power shares had reached their highest level in 52 weeks on September 12, 2023, at INR 409.70.
- On August 22, 2022, it had touched a record high of INR 432.50.
- Over the past five years, the stock has witnessed an impressive growth of 669.20%. During this period, its price has risen significantly, starting from INR 50 to the current price.
Conclusion
Adani Power’s remarkable performance in the recent quarters has driven a surge in its stock price. The company’s focus on improving EBITDA, along with one-time exceptional income and tax relief, has significantly boosted its profits.
Adani-Power’s strategic approach in the power sector has contributed to its strong financial performance. The continuous rise in its share price reflects the investor confidence and the positive outlook for the company in the energy industry.
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