Adani Energy Solutions on Monday reported a 27.2% year-on-year (YoY) decline in consolidated net profit for the quarter ended December to Rs 348 crore. However, revenue from operations rose nearly 19% YoY to Rs 3,615 crore.

Revenue growth boosted by newly commissioned transmission lines and rise in energy consumption in the Mumbai distribution business.

The consolidated operational EBITDA or earnings before interest, taxes, depreciation and amortisation, grew by 10.4% to Rs 1,454 crore.

The consolidated cash profit of Rs 786 crore during the quarter, was marginally higher. Whereas comparable PAT of Rs 281 crore was 1% higher, supported by miscellaneous income of Rs 136 crore and lower finance cost in AEML. The comparable PAT in Distribution increased by 100%

“We are very excited about opportunities in all lines of business in AESL. The smart metering segment is consistently growing besides our existing T and D established industry position. To offer smart and tech-enabled smart metering solutions, our partnership with Airtel, Esyasoft, AdaniConnex will be very fruitful and will immensely augment our offering,” said Kandarp Patel, CEO, Adani Energy Solutions.

Operational Highlights
In the transmission segment, the transmission system availability remained robust during the quarter at 99.7%.

The business added 302 circuit kilometers during the quarter and ended with a transmission network of 20,422 circuit kilometers. In the distribution business (AEML), the company sold 2,489 million units vs. 2,169 million units last year on account of an uptick in energy demand primarily driven by higher industrial share.

Distribution loss has been improving consistently and stands at 5.46% in Q3FY24 and maintained supply reliability at over 99.9%.

The company commissioned 400 KV Kharghar-Vikhroli double circuit transmission line, establishing the first-ever high voltage 400 KV connection in Mumbai. This will enable an additional 1,000 MW power to be brought into Mumbai, thus meeting the city’s fast growing electricity demand.

The 765 KV KBTL (Khavda Bhuj line), with 217 circuit kilometers got charged during the quarter. This line, once fully commissioned, will help evacuate about 3 GW of renewable energy from Khavda, Gujarat. The project will help shape one of the country’s largest solar and wind farms.

Segment-wise Progress and Outlook
In the transmission segment, its under-construction transmission pipeline worth Rs 17,000 crores is well on track from the execution point of view.

The company is on track to commission the MP-II package (partial), the Khavda-Bhuj (partial), and the WRSR lines in the coming quarters.

The near-term (12-24 months), tendering pipeline for the industry is buoyant and upwards of Rs. 1.10 lakh crore under various stages of bidding.

The distribution business continues to show a steady performance with double-digit growth and consistently increasing RAB (regulatory asset base), supported by internal accruals. Total RAB for the distribution business has now reached Rs. 7,823 crores from Rs. 5,532 crores at the time of acquisition in 2018.

AESL is exploring several areas and have applied for parallel distribution license in several geographies like Navi Mumbai in Maharashtra, Greater Noida (Gautam Buddha Nagar) in UP, and Mundra subdistrict in Gujarat.

AEML, on a YTD basis, did capital expenditure of over Rs 800 crores and reduced its long-term debt by Rs 855 crores through a bond buyback program.

During the quarter, AESL received LOA (letter of award) for Phase-2 smart metering contracts from Andhra Pradesh discoms and a new contract from the Uttarakhand discom. Total contracts awarded in Q3 aggregate to 2 million smart meters with a contract value of ~Rs 2,300 crores.

The under-implementation pipeline now stands at 21.1 million smart meters, comprising nine projects with a contract value of over Rs 25,000 crore.


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