Multibagger Adani Power’s shares jump over 4%; here's why

On March 5, Adani Power announced it received the creditors' approval for the resolution plan to acquire insolvent Lanco Amarkantak Power.

"The proposed transaction does not result in an appreciable adverse effect on competition in any plausible relevant market in India," the Competition Commission of India (CCI) said.

Adani Power is engaged in the business of thermal power generation in India.

The multibagger stock has delivered returns of 191% over the past 12 months which marks a significant outperformance over Nifty.

The Adani Group company reported a multifold jump in its consolidated net profit at Rs 2,738 crore for the quarter ended December. The same stood at just Rs 9 crore in the same period last year. Revenue from operations jumped 67% year-on-year (YoY) to Rs 12,991 crore in the October-December period, compared with Rs 7,764 crore in the corresponding period of last year.

EBITDA for the reporting quarter more than doubled to Rs 5,059 crore against Rs 1,996 crore in the same quarter last year. Continuing EBITDA jumped 242% to Rs 5,059 crore.
Growth in continuing EBITDA was mainly a result of a lower increase in fuel cost compared to growth in revenues, primarily due to lower import fuel prices and alternate fuel costs.

Depreciation charges for the third quarter increased to Rs 1,002 crore from Rs 838 crore in Q3 FY23 due to the addition of the Godda power plant.

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