GICS Industry : Independent Power Producers l Sub Industry : Independent Power Producers l Website : www.adanipower.

com

Adani Power Ltd

Key Stock Indicators
NSE Ticker : Bloomberg Ticker : Face value / Share: Div. Yield (%): ADANIPOWER ADANI:IN 10.0 0.0 CMP (as on 04 Jan 2011Rs/share): 52-week range up to 04 Jan 2011 (Rs)(H/L): Market Cap as on 04 Jan 2011 (Rs mn): Enterprise Value as on 04 Jan 2011 (Rs mn): Div. Yield (%): 0.0 130.2 143.35/99.40 283,732 377,783 Shares outstanding (mn) : Free Float (%) : Average daily volumes (12 months) : Beta (2 year) : 2180.0 26.5 1,126,980 -

Adani Power Limited (APL) was incorporated in 1996 and is a part of Adani Enterprises Ltd (AEL), which holds around 73.5% stake in it. APL is engaged in power generation and setting up of power projects. As of November 2010, the company had commissioned 990 MW out of its total planned capacity of 16,500 MW.

Key Financial Indicators

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m. : Not meaningful

KEY HIGHLIGHTS
Undertaking several capacity expansion plans APL is currently developing several thermal power projects which are under various stages of development with an aggregate capacity of 16,500 MW in western and central part of the country. Out of its total planned capacity, 9,240 MW is under execution and 7,260 MW is under advanced stages of planning and clearances. APL is executing a power project of 4,620 MW in four phases at Mundra. Also, the company is implementing a 3,300 MW project in two phases in Tiroda (Maharashtra) and undertaking power projects of 1,320 MW in Kawai (Rajasthan), 2,640 MW in Dahej (Gujarat) and 1,320 MW in Chhindwara (Madhya Pradesh). APL raised equity of around Rs 22 billion through an IPO in August 2009 to finance the construction and development of Mundra Phase IV and the Tiroda power project. Tie-ups for fuel supply for projects APL has signed a long-term fuel agreement with its parent company AEL. AEL has entered into an agreement with holders of long-term exploitation licenses to exclusively mine coal in Bunyu Island (Indonesia). Phase I, II and III of the Mundra project have received coal linkage for 30% of the project capacity. There is also a coal linkage with Mahanandi Coalfields Ltd for supply of 6.4 tonnes per annum for Phase IV of the Mundra project. Also, Tiroda power project has been allotted coal blocks in Lohara West and Lohara Extension in Maharashtra for generating 800 MW of power. Long-term PPA with state power utilities APL has entered into long-term power purchase agreement (PPA) with state power utilities. As of July 2010, the company has already made an arrangement for about 7,144 MW, which is around 77% of the total capacity under development. The remaining 23% of the capacity will be sold on merchant basis. APL has signed PPA with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the sale of 2,000 MW of power, with Uttar Haryana Bijli Vitaran Nigam Ltd and Dakshin Haryana Bijli Vitaran Nigam Ltd for 712 MW each, with Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for 2,520 MW, and with Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RRVPNL) for 1,200 MW.

Mar-08 -71.8 0.9 -0.1 -0.5 -0.9 -

Mar-09 -27.8 2.1 -0.1 -0.2 -

Mar-10 4,348.6 60.0 1,145.4 26.3 1.8 0.5 247.7 4.8 1.5 2.8 144.7

Shareholding (As on September 30, 2010)

FII 9% DII 2% Others 16%

Promoter 73%

KEY RISKS

Indexed price chart

(index) 160 140 120 100 80 60 40 20 0 Nov-10 Apr-10 Aug-10 Feb-10 Mar-10 May-10 Sep-10 Oct-10 Jun-10 Jan-10 Jul-10 ('000) 10000 8000 6000 4000 2000 0 Dec-10 NIFTY

Project execution risk Changes in government regulations Fuel supply

Stock Performances vis--vis market

Returns (%) YTD ADANIPOWER NIFTY
Note: 1) YTD returns are since April 1, 2010 to Jan 04, 2011. 2) 1-m, 3-m and 12-m returns are up to Jan 04, 2011.

1-m -1 3

3-m -3 0

12-m 31 17

13 16

Volumes (RHS)

ADANIPOWER

CRISIL COMPANY REPORT | 1

Adani Power Ltd

BACKGROUND
Incorporated in 1996, APL is a part of AEL. AEL holds around 73.5% stake in APL, which is engaged in power generation and setting up of power projects. APL is currently developing various coal-based power projects in Gujarat, Rajasthan, Maharashtra and Madhya Pradesh, with total aggregate capacity of 16,500 MW, which are in various stages of development. As of November 2010, out of its total planned capacity, 990 MW has been commissioned. Power projects at Dahej (Gujarat), Bhadreshwar (Gujarat) and Chhindwara (MP) are under advanced stages of planning and clearances.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Adani Power Mar-10 4,348.6 60.0 1,145.4 26.3 1.8 0.5 237.8 4.6 1.5 2.8 140.4

J S W Energy Ltd. Mar-10 23,782.8 52.1 6,802.9 28.6 1.6 4.1 23.6 3.4 10.5 21.8 18.8

N T P C Ltd. Mar-10 484,671.0 26.1 88,377.0 18.2 0.7 10.7 17.2 2.4 12.7 14.8 14.2

Tata Power Co. Ltd. Mar-10 188,915.5 20.1 19,430.1 10.3 2.1 81.9 15.7 3.4 12.5 27.9 12.3

FINANCIAL PROFILE
Plant operation commences, revenue in FY10

Key Financial Indicators Units Revenue Rs mil li on Rs mil li on Per cent Per cent Per cent Ti mes Per cent Per cent EBITDA ma rgins Per cent PAT PAT ma rgi ns EBITDA growth PAT growth Gea ring RoCE RoE

Mar-08
0.0 0.0 -71.8 0.0 n.m n.m n.m 0.9 n.m n.m

Mar-09
0.0 0.0 -27.8 0.0 n.m n.m n.m 2.1 n.m n.m

Mar-10
4,348.6 60.0 1,145.4 26.3 n.m n.m n.m 1.8 1.5 2.8

With one unit starting operations in FY10, the company registered revenue of Rs 4.3 bn. Gearing remained high at 1.8 times FY10 on account of investment in various projects. The company reported a profit after tax (PAT) of Rs 1.1 bn for FY10 vis--vis a loss of Rs 28 mn in FY09.

Revenue growth Per cent

INDUSTRY PROFILE
Power generation Private utilities Private power generation entities (PGEs) tie up for power purchase through power purchase agreements (PPAs) with SEBs as SEBs monopolise power distribution. PGEs face short-to-medium term risks owing to dependence on financially weak state utilities. The cost of power generation for private power plants is relatively higher as compared to the central and state sector power plants. Due to the high costs, PGEs which account for around 18 per cent of the generating capacity usually rank last in the merit order dispatch (MOD). However, this is offset to a certain extent by supportive government policies such as benefits to private generators following open access and power trading. As per the Tariff Policy announced in January 2006, all private players are required to participate in competitive bidding for the sale of power.

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Adani Power Ltd

ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 -71.8 0.0 11.1 149.6 Mar-09 -27.8 0.0 91.3 -1,278.5 Mar-10 2,027.2 -207.3 526.3 -400.2 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 n.m n.m n.m 0.0 0.0 0.0 0.0 0.0 23.3 -0.9 -0.5 0.9 0.0 -191.2 0.0 Mar-09 n.m n.m n.m 0.0 0.0 0.0 0.0 0.0 12.7 -0.2 -0.1 2.1 0.0 785.8 0.0 Mar-10 n.m n.m n.m 60.0 0.0 26.3 0.0 0.0 27.0 2.8 1.5 1.8 8.3 40.5 0.3

Mar-08 0.0 0.0 -60.7 0.0 11.1 0.0 0.0 -71.8 -71.8 0.0 552.1 -0.1

Mar-09 0.0 0.0 63.5 0.0 91.3 0.0 0.0 -27.8 -27.8 0.0 1842.0 -0.0

Mar-10 4,348.6 4,348.6 2,610.9 60.0 526.3 316.0 258.6 1,472.6 1,145.4 26.3 2180.0 0.5

Mar-08 5,931.4 6,907.4 12,838.8 0.0 7,059.6 4,552.2 11,611.7 4,354.4 6.2 28,811.1 183.5 24,446.3 532.4 3,832.5 0.0 149.1 1,921.0 28,811.2

Mar-09 18,420.4 5,008.0 23,428.4 0.0 49,896.9 0.0 49,896.9 5,608.3 11.3 78,944.9 3,451.2 68,910.4 0.0 10,034.4 0.0 285.4 5,585.5 78,944.8

Mar-10 21,800.4 36,989.9 58,790.2 119.9 98,442.9 7,262.2 105,705.1 14,617.1 34.8 179,267.1 28,528.6 153,731.7 0.1 25,535.3 2,563.0 1,912.1 11,653.9 179,267.1

Cash flow from operating activities Capital Expenditure Investments and others Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

88.9 -18,428.3 -532.4 -18,960.7 9,893.1 10,169.1 0.0 233.6

-1,215.0 -44,572.7 532.4 -44,040.3 10,436.4 38,285.1 0.0 198.3

1,946.0 -85,343.5 -0.1 -85,343.6 33,380.1 55,808.2 0.0 277.7

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

20,295.8 1,424.0 497.0 1,921.0

48,919.8 3,664.5 1,921.0 5,585.5

89,466.0 6,068.4 5,585.5 11,653.9

0.3
0

1.5
0

1.1
2,000

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a ti on PBT PAT Sep-10 3 4,139.3 2,282.6 454.9 358.5 1,469.2 1,258.5 100.0 55.1 11.0 8.7 35.5 30.4 (0.7) (0.7) (0.7) % of Rev Sep-09 % of Rev 3 100.0 n.m n.m n.m n.m n.m Sep-10 6 7,670.1 4,414.7 809.1 637.6 2,968.0 2,403.2 100.0 57.6 10.5 8.3 38.7 31.3 (6.0) (6.0) (6.0) % of Rev Sep-09 % of Rev 6 100.0 n.m n.m n.m n.m n.m

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Adani Power Ltd

FOCUS CHARTS & TABLES
Rs mn 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Dec-09

Quarterly sales

Rs mn 1,400 1,200 1,000 800 600 400 200 0 Dec-09

Quarterly PAT

Mar-10

Sep-10

Rs/share 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Dec-09

EPS

Per cent 80 70 60 50 40 30 20 10 0 Sep-10

Movement in operating and net margins

Dec-09

Mar-10

OPM

Mar-10

Shareholding Pattern (Per cent) Dec 2009 Mar 2010 Promoter 73.5 73.5 FII 7.7 8.2 DII 1.9 2.6 Others 16.9 15.8

Jun 2010 73.5 8.5 2.5 15.5

Sep 2010 73.5 8.7 2.1 15.7

Board of Directors Director Name Ga uta m Sha ntil a l Ada ni (Mr.) Ra jes h Sha nti la l Ada ni (Mr.) Ra jendra Kuma r Ma da n (Mr.) Vija y Pya rela l Ra ncha n (Mr.) Chi nubha i Ra ma nl a l Sha h (Mr.) Bri j Beha ri Ta ndon (Mr.) Surender Kuma r Tuteja (Mr.)

Designation Non-Executive Cha i rma n, PromoterDirector Ma na gi ng Di rector, Promoter-Di rector Non-Executive Di rector Non-Executive Di rector Non-Executive Di rector Non-Executive Di rector Non-Executive Di rector

Ameet Hi ra nya kuma r Des a i (Mr.) Director

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Sep-10
NPM

Sep-10