Credit rating agency, CRISIL has downgraded rating of Adani Power’s long term bank facilities to BBB/Negative from A-/Stable. The ratings are downgraded on the back of under performance in profitability in 2011-12.
The underperformance in profitability is on account of a combination of the fixed-tariff structure (no fuel-cost pass through) for APL’s capacity under power purchase agreement (PPA) and a sharp increase in fuel costs.
For the full year ended March 31, 2012, the company posted a loss of Rs 293.92 crore for the year ended March 31, 2012 as compared to the net profit of Rs 523.75 crore for the same period in the previous year. However, total income increased by 93.22% at Rs 4239.83 crore for year under review as compared to Rs 2194.28 crore for the period ended March 31, 2011.
