Adani Power’s earnings declined by 50 percent, are the good days over now?
Rahul Tiwari October 28, 2024 08:21 PM

Adani Power Limited has released the results for the second quarter of financial year 2025. This quarter has not proved to be better for the company. There has been a slight increase in revenue and decline in net profit. The consolidated net profit of the company has declined by 50 percent to Rs 3,297 crore as compared to the previous same quarter. There was a profit of Rs 6,594 crore in Q2 FY24.

Earnings decreased by 50 percent

Adani Power saw a marginal growth in revenue, reaching Rs 13,338 crore in Q2FY25 compared to Rs 12,990 crore in the same quarter last year, showing a growth of 2.4% YoY. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of this financial year stood at Rs 5,276 crore, compared to ₹7,110 crore in Q2 FY24. This shows a decrease on an annual basis.

Growth seen in company's revenue

EBITDA margin for the quarter was 39.55%, a slight decline from 39.81% in Q2 FY24, highlighting stable but stressed operating efficiency. Adani Power's second quarter results reflect the company's ability to maintain stable revenue growth despite decline in earnings and operating margins. The company's decline in net profit and EBITDA indicates cost pressures and competitive challenges, while steady revenue growth indicates resilient demand in the power sector.

This was the condition of the company's shares this year

Adani Power shares have registered a growth of about 14% this year. On October 28, it closed at Rs 595.20 with a marginal gain of 0.49%. It has seen a decline of 9.29% in the last one month and a slight decline of 0.15% in the last six months. Adani Power shares have given an excellent return of 66.28% in the last one year, while it has increased by 13.75% since the beginning of this year (January 1). The market cap of the company is Rs 2.31 lakh crore.

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