Latest news with #AdaniPower
Time of India
a day ago
- Business
- Time of India
Adani Power shares may rally 18%, positioned as a pure play in India's thermal power space: InCred Equities
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Calling it a pure play on the Indian thermal space, domestic brokerage firm InCred Equities has initiated coverage on Adani Power Ltd (APL) with an 'add' rating and set a target price of Rs 649 per share, implying an upside potential of 17.8% from its previous closing brokerage's outlook is based on the company's strong presence in the thermal power segment, brownfield expansion strategy, and deleveraging to InCred, Adani Power is a pure play in India's thermal power space with 87% of its capacity tied to long-term power purchase agreements (PPAs) that include a fuel cost pass-through company generated Rs 200 billion of recurring EBITDA in FY25, supported by this stable revenue mix. The remaining 17% of capacity is dedicated to merchant power, leveraging Indian Energy Exchange (IEX) prices with a realised average of Rs 5–6/kWh and a peak of Rs 10/ Power currently operates 17.55 GW of capacity and has outlined an expansion strategy to scale its installed capacity to 30.67 GW by FY30F. This includes a planned addition of 13.12 GW through brownfield projects such as Mahan Phase II (1.66 GW), Raipur Phase II (1.66 GW), Korba Revival (1.32 GW), and noted that this growth strategy aligns with India's projected 5–6% annual power demand growth, with peak demand expected to reach 458 GW by domestic brokerage firm also highlighted that the company achieved a 71% plant load factor (PLF) in FY25 and generated Rs 564 billion in revenue for the same period. APL's inorganic growth strategy and expansion projects are expected to improve the industry PLF to 69% by the financial side, Adani Power is expected to report an 11% EBITDA CAGR over FY25–28F, primarily driven by increased PLF and higher power generation from the merchant segment. The company plans to spend Rs 1,200 billion in capital expenditure for FY25, funded via internal accruals, and aims to reduce its net-debt-to-EBITDA ratio to 0.9x by FY30F from 1.5x in brokerage notes potential downside risks related to execution delays in the 13.12 GW pipeline, lower-than-expected merchant realisation, and the timing of discom payment resolution.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
a day ago
- Business
- Economic Times
Adani Power shares may rally 18%, positioned as a pure play in India's thermal power space: InCred Equities
InCred Equities has initiated coverage on Adani Power with an 'add' rating and a target price of Rs 649, citing a potential 17.8% upside. The brokerage highlights APL's strong thermal power presence, stable PPAs, brownfield expansion plans, and deleveraging efforts. With capacity set to rise to 30.67 GW by FY30F, APL is well-positioned for growth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Calling it a pure play on the Indian thermal space, domestic brokerage firm InCred Equities has initiated coverage on Adani Power Ltd (APL) with an 'add' rating and set a target price of Rs 649 per share, implying an upside potential of 17.8% from its previous closing brokerage's outlook is based on the company's strong presence in the thermal power segment, brownfield expansion strategy, and deleveraging to InCred, Adani Power is a pure play in India's thermal power space with 87% of its capacity tied to long-term power purchase agreements (PPAs) that include a fuel cost pass-through company generated Rs 200 billion of recurring EBITDA in FY25, supported by this stable revenue mix. The remaining 17% of capacity is dedicated to merchant power, leveraging Indian Energy Exchange (IEX) prices with a realised average of Rs 5–6/kWh and a peak of Rs 10/ Power currently operates 17.55 GW of capacity and has outlined an expansion strategy to scale its installed capacity to 30.67 GW by FY30F. This includes a planned addition of 13.12 GW through brownfield projects such as Mahan Phase II (1.66 GW), Raipur Phase II (1.66 GW), Korba Revival (1.32 GW), and noted that this growth strategy aligns with India's projected 5–6% annual power demand growth, with peak demand expected to reach 458 GW by domestic brokerage firm also highlighted that the company achieved a 71% plant load factor (PLF) in FY25 and generated Rs 564 billion in revenue for the same period. APL's inorganic growth strategy and expansion projects are expected to improve the industry PLF to 69% by the financial side, Adani Power is expected to report an 11% EBITDA CAGR over FY25–28F, primarily driven by increased PLF and higher power generation from the merchant segment. The company plans to spend Rs 1,200 billion in capital expenditure for FY25, funded via internal accruals, and aims to reduce its net-debt-to-EBITDA ratio to 0.9x by FY30F from 1.5x in brokerage notes potential downside risks related to execution delays in the 13.12 GW pipeline, lower-than-expected merchant realisation, and the timing of discom payment resolution.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
3 days ago
- Business
- Time of India
SC upholds tribunal order in Adani case, nixes discoms' plea
Jaipur: The Supreme Court on Friday dismissed an appeal filed by Rajasthan's power distribution companies against an order of the Appellate Tribunal for Electricity (APTEL) that ruled in favour of Adani Power Rajasthan Ltd (APRL) for levying a charge of Rs 50 per tonne of coal. Tired of too many ads? go ad free now The case is related to a Dec 2017 notification issued by Coal India Ltd, imposing a charge of Rs 50 per tonne as evacuation facility charges (EFC). Adani Power, which signed a PPA with the state's discoms in 2010 for the supply of 1200 MW of power, claimed that the levy constituted a "change in law" under Article 10 of the PPA. A bench comprising Justices M M Sundresh and Rajesh Bindal held that there was no merit in the plea of Jaipur Vidyut Vitran Nigam Ltd (JVVNL) and Rajasthan discoms. It upheld the APTEL's finding that a levy introduced by Coal India Ltd constituted a "change in law" entitling Adani to compensation under its Power Purchase Agreement (PPA). After the CIL notification, Adani Power notified the discoms of the change in law event, seeking compensation. When state discoms failed to respond, Adani approached the Rajasthan Electricity Regulatory Commission (RERC), which partially allowed its claims. Both parties subsequently approached APTEL, which in April 2024 ruled in favour of Adani Power. In the order, Justice Sundresh said the statutory levy by a govt entity like CIL qualified as a change in law, triggering the restitution principle enshrined in the PPA. The verdict said that compensation must be provided to restore the power generator to the same economic position it would have occupied but for the change in law. "We find no merit in this appeal. The appeal stands dismissed accordingly," it held.
Hindustan Times
6 days ago
- Business
- Hindustan Times
Supreme Court directs Rajasthan discoms to pay 186 crore to Adani Power
The Supreme Court has dismissed an appeal filed by Rajasthan's power distribution companies against a ruling of the Appellate Tribunal for Electricity (APTEL) in favour of Adani Power Rajasthan Ltd, asking them to pay Adani Power around ₹186 crore in compensation. A bench of justices M M Sundresh and Rajesh Bindal said on May 23, that it found no merit in the appeals filed by Jaipur Vidyut Vitran Nigam Ltd (JVVNL) and other state discoms. The court upheld APTEL's April 2024 decision that recognised a levy introduced by Coal India Ltd (CIL) as a 'change in law' event under the Power Purchase Agreement (PPA) between Adani Power and the discoms. In December 2017, CIL had issued a notification introducing an Evacuation Facility Charge to cover the expenses related to transporting coal from the mine to the destination. Adani Power, which had entered a PPA to supply 1,200 MW of power to Rajasthan discoms, argued that such charge amounted to a sudden change in law and increased its cost of generating electricity. Since the provisions of the PPA protected it from financial losses due to new or modified laws, rules, or charges imposed by the government, Adani Power claimed it was entitled to receive compensation. After the Rajasthan Electricity Regulatory Commission partially allowed Adani Power's claim, the company as well as the State discoms appealed to APTEL. The Tribunal held that the new charge levied by CIL was a statutory levy imposed by a government entity and thereby qualifying as a change-in-law event and thus, Adani Power should be paid the compensation by the discoms. In its judgement on Friday, the Supreme Court, too, agreed with the Tribunal's ruling and hence, upheld its order directing JVVNL and other discoms to compensate Adani Power. The court noted that the introduction of the EFC disrupted the economic basis of the PPA and activated the principle of restitution. 'The new statutory levy by a government body like CIL qualifies as a change in law, thereby entitling APRL to be restored to the same economic position as if the change had not occurred,' the court said while dismissing the appeals filed by the discoms. The apex court also upheld the tribunal's direction that compensation to Adani Power should be paid from the date of the CIL notification, along with carrying costs at Late Payment Surcharge rates specified in the PPA. The discoms thus, will now have to pay ₹186 crore to Adani Power in dues, the top court said.
&w=3840&q=100)
Business Standard
23-05-2025
- Business
- Business Standard
Supreme Court rejects Rajasthan discoms' appeal in Adani Power case
The Supreme Court on Friday dismissed an appeal filed by Rajasthan's power distribution companies against a ruling by the Appellate Tribunal for Electricity (Aptel) in favour of Adani Power Rajasthan Ltd (APRL). A bench of Justices M M Sundresh and Rajesh Bindal found no merit in the plea filed by Jaipur Vidyut Vitran Nigam Ltd (JVVNL) and other Rajasthan discoms. The court upheld Aptel's view that a levy introduced by Coal India Ltd (CIL) constituted a change in law, entitling Adani Power to compensation under the terms of its Power Purchase Agreement (PPA). Background to the dispute The case stemmed from a December 2017 notification by CIL, introducing an evacuation facility charge (EFC) of ₹50 per tonne. Adani Power, which had entered into a PPA in 2010 to supply 1,200 MW to the Rajasthan discoms, argued that the levy triggered Article 10 of the PPA, which governed change-in-law provisions. Adani Power notified the discoms about the additional charge and sought compensation. When the matter remained unresolved, the company approached the Rajasthan Electricity Regulatory Commission (RERC), which partially allowed the claim. SC ruling reinforces 'change in law' interpretation The discoms subsequently appealed to the Supreme Court, which has now sided with Adani Power. Justice Sundresh, writing the 32-page judgment, held that the new statutory levy by a government body like CIL qualified as a change in law, thereby activating the restitution principle under the PPA. The court affirmed that compensation must be awarded to restore the power generator to the economic position it would have been in had the change not occurred. 'We find no merit in this appeal. The appeal stands dismissed accordingly,' the judgment concluded. Aptel had earlier ruled that APRL is entitled to full compensation for the change-in-law event related to evacuation facility charges, with effect from the date of the CIL notification.
