Adani Energy Solutions reports strong Q1 FY25 performance

Revenue from operations at Rs 5,379 crore, up 47% YoY

Operational EBITDA at Rs 1,628 crore, up 29.7% YoY 

Adjusted PAT of Rs 315 crore increased by 73% YoY 

 

The company honoring its ESG commitment has decided to divest Dahanu thermal plant in Q1FY25 resulting an exceptional item in line with Ind AS 105, of Rs 1,506 crore. The financial numbers are, therefore, adjusted for this exceptional item   

 

 

Ahmedabad, 25 July 2024 Adani Energy Solutions Limited (“AESL”), part of the globally diversified Adani portfolio and the largest private transmission and distribution company in India with a growing smart metering portfolio, today announced its financial and operational performance for the quarter ended June 30, 2024.

 

“AESL remains steadfast with commissioning of new lines, along with strong energy demand growth in its distribution areas of AEML and MUL. We are further contributing to decarbonization of the power distribution in Mumbai by way of 37% renewable power penetration in Mumbai. We remain focused on recognizing and tapping market opportunities within the areas of interest and lead energy transition in India. We take pride in our contribution to developing critical transmission infrastructure, to facilitate renewable evacuation (e.g. Khavda) and as well as strengthening the existing grid and driving energy efficiency in India through its smart metering program. We are also pleased to share that prestigious agency like the FTSE have upgraded our ESG score in the FTSE4Good Index to 4.4, with environment score being the key improvement area. This demonstrates our unwavering dedication to reduce environmental impact and promote sustainable practices,” said Anil Sardana, MD, Adani Energy Solutions.

 

Q1 FY25 Highlights: 

Consolidated Financial Performance         (Rs crore)

 

Particulars	Q1 FY25	Q1 FY24	YoY %
Revenue from operations	5,379	3,664	46.8%
Total EBITDA (Adjusted)	1,762#	1,378	27.9%
Operating EBITDA	1,628	1,255	29.7%
PAT (Adjusted)	315#	182	73.0%
Cash profit	908#	649^	39.9%
Cash Profit (ex one-time)	908	639	42.1%

 

(Note: Total EBITDA = Operating EBITDA plus other income, one-time regulatory income, adjusted for CSR exp.; Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM option loss;) #Adjusted for an exceptional item because of proposed carve-out of the Dahanu power plant in line with Ind AS 105, of Rs 1,506 crore. ^Includes one-time bilateral charge and provision of Rs 10 crores (net off tax) in Q1FY24 

Revenue:  Revenues witnessed a robust growth of 47% on account of the contribution from the newly operationalized transmission assets, line addition at under-construction projects and an increase in the units sold because of higher energy consumption in the distribution business at Mumbai and Mundra and contribution from smart metering business

• Strong transmission system availability of 99.7% at the portfolio level
• AEML, the Mumbai distribution business witnessed an increase in the energy consumed by 8%. Its distribution losses of 5.18% remains low and the utility added new consumers, reaching 3.2 million on the back of reliable and affordable power supply
  
  
  EBITDA: 

 

• The operational EBITDA increased by 30% to Rs 1,628 crore for the quarter, with incremental revenue contribution from Warora-Kurnool, Karur, Kharghar-Vikhroli and MP-II lines, recently acquired Mahan Sipat assets and steadily regulated EBITDA from the Distribution business. The transmission business continues to maintain the industry’s leading EBITDA margin of 91%
• The total EBITDA of Rs 1,762 crore in Q1 ended 28% higher after adjusting for an exception item of Rs 1,506 crore on account of proposed carve-out of the Dahanu power plant, in accordance with Ind AS 105
• PAT: PAT of Rs 315 crore in Q1FY25 was 73% higher YoY translating from a strong EBITDA growth 

 

Segment-wise Financial Highlights:               (Rs crore)

 

Segment	Particulars	Q1 FY25	Q1 FY24	YoY %
Transmission	Op Revenue	1,174	884	32.8%
	EBITDA	1,148	862	33.3%
	PAT	251	162	54.8%
	Cash Profit	571	417	36.9%
Distribution (AEML and MUL)	Op Revenue	3,372	2,738	23.2%
	EBITDA Adj.	592	516	14.8%
	PAT Adj.	51	20	151.2%
	Cash Profit	320	232	38.2%
Smart Metering	Op Revenue	76	-	-
	EBITDA	21	-	-
	PAT	14	-	-
	Cash Profit	16	-	-

  

 

Segment-wise Key Operational Highlights:

Particulars	Q1 FY25	Q1 FY24	Change
Transmission business
Average Availability (%)	99.7%	99.7%	In line
Transmission Network Added (ckm)	190	550	Lower
Total Transmission Network (ckm)	21,187	19,778	Higher
Distribution business (AEML)
Supply reliability (%)	99.99%	99.99%	In line
Distribution loss (%)	5.18%	4.85%	Higher
Units sold (MU's)	2,962	2,754	Higher
Distribution business (MUL)
Units sold (MU's)	226	133	Higher

 

Transmission business: 

• On operational parameters, it was a strong year, with an average system availability of over 99.7%. Robust line availability resulted in an incentive income of Rs 30 crore in Q1FY25 
• During the quarter, the company completed acquisition of Mahan Sipat transmission assets thereby adding 673 ckm to its operational network  
• Added 190 circuit kilometers during the quarter and ended with a total transmission network of 21,187 circuit kilometers
  
  
  

Distribution business (AEML Mumbai and MUL Mundra): 

• Sold 2,962 million units in AEML vs. 2,754 million units sequentially on account of an uptick in energy demand 
• Distribution loss at AEML has been improving consistently and stands at 5.18% in Q1 FY25. Maintained supply reliability at over 99.9%
• The units sold in MUL (Mundra) utility was 226 MUs in Q1FY25 as against 133 MUs on the back of strong industrial demand

 

Segment-wise Progress and Outlook:

Transmission:

• Robust under construction project pipeline worth Rs 17,000 crores are currently under the execution phase
• The company is on track to commission the MP-II package, NKTL (North Karanpura), Khavda Phase-II, Part-A and the WRSR (Narendra-Pune) lines in the coming quarters
• The near-term tendering pipeline for the industry is solid and upwards of Rs 90,000 crore

 

Distribution:

• The distribution business continues to show a steady performance with double digit revenue growth and expansion of RAB (regulatory asset base). Total RAB for the distribution business stands at Rs 8,371 crores from Rs 5,532 crores at the time of acquisition in 2018
• AESL is exploring multiple areas and has applied for a parallel distribution license in Navi Mumbai in Maharashtra, Greater Noida (Gautam Buddha Nagar) in UP, and Mundra subdistrict in Gujarat

 

Smart Meters: 

• The new business segment is evolving well and will become sizeable in terms of contribution to AESL’s overall growth and profitability. It will offer massive synergies to the distribution business
• The under-implementation pipeline stands at 22.8 million smart meters, comprising nine projects with a contract value of over Rs 27,195 crore. The contribution from smart metering business has flowed into the business 
  
  ESG Updates:

 

• AEML has initiated divestment of the Dahanu thermal power plant (ADTPS), which is in line with AESL’s ESG philosophy. This will place AESL closer to its aspiration to be amongst the top 20 global companies in ESG ratings amongst the global utility industry
• Adani Electricity Mumbai successfully increased its renewable energy share in the overall electricity mix to an impressive 37% at the end of June 2024
• FTSE Russell has upgraded AESL’s ESG score in the FTSE4Good index series from 4 to 4.4. The environment score improved to 4.3 from 3.3, while social and governance score maintained at 4 and 5 respectively 
• CDP Climate Change 2023 score improves to ‘B’ from ‘D’, surpassing the Asia regional average of ‘C’ driven by environmental transparency and prompt actions on climate change
• In a recent assessment by Sustainalytics, the ESG score improves to 25.3 from 32.8, placing the company amongst the top 30 global utilities and top 20 electric utilities tracked by Sustainalytics thereby beating the global and industry average scores 

 

Achievements:

• Adani Electricity launched new “Network Operations Center (NOC)” powered by India's first fully functional Advanced Distribution Management System (ADMS) and SCADA technology to ensure reliable power supply to over 12 million consumers
• Received 11th Innovation with Impact Awards for DISCOMs in multiple categories by Indian Chamber of Commerce (ICC) on the sidelines of India Energy Summit: Green Energy (ranked 2nd); Efficient Operations (ranked 3rd); Performance Improvement (ranked 3rd)
• In our pursuit of achieving the highest standards of consumer centricity, AEML launched quarterly newsletter ‘City Currents’ to keep our large consumer base in Mumbai updated on innovations and the solutions we are bringing to impact people’s lifestyles