Adani Energy Solutions Limited (AESL), a key player in the diversified Adani portfolio, stands as the largest private transmission and distribution company in India. With a rapidly expanding smart metering segment, the company today announced its financial and operational performance for the quarter and half-year ending September 30, 2024.
In a significant achievement, AESL raised ₹8,373 crore through a Qualified Institutional Placement (QIP), marking the largest fundraiser in the Indian power sector. The company reported a robust 69% growth in total income, driven by contributions from newly commissioned projects including the Kharghar-Vikhroli, Warora-Kurnool, and Khavda-Bhuj lines, as well as the acquired Mahan-Sipat line. Additionally, higher energy sales from the Mumbai and Mundra utilities and the smart metering segment played a crucial role in this growth.
The company’s EBITDA increased by 31% to ₹1,891 crore for the quarter, reflecting strong revenue growth alongside enhanced EPC income in transmission and steady regulated EBITDA in Adani Electricity Mumbai Limited (AEML). Notably, Profit After Tax (PAT) saw an impressive 172% year-on-year increase, aided by a deferred tax reve₹al of ₹314 crore related to previous years MAT entitlements.
AESL secured three new transmission projects—NES in Jamnagar, NES in Navinal (Mundra), and Khavda Phase IVA—adding 2,059 circuit kilometres to its under-construction network. As a result, the total pipeline for under-construction projects has expanded significantly from ₹ 17,000 crore in Q1FY25 to approximately ₹27,300 crore in Q2FY25. The demand for energy remains strong, with energy sales in AEML rising 7% year-on-year to 2,609 million units, while the Mundra Utility (MUL) experienced a substantial 50% increase to 234 million units.
In terms of operational efficiency, AESL reported an average system availability exceeding 99.7% during the quarter. This impressive performance resulted in an incentive income of ₹ 35 crore. The new transmission projects secured during this period have a combined project cost of approximately ₹10,300 crore, further bolstering the company’s capabilities.
In the distribution segment, AEML achieved sales of 2,609 million units compared to 2,446 million units year-on-year, reflecting increased energy demand. The distribution loss at AEML has consistently improved, currently standing at 4.85% in Q2FY25, while supply reliability has been maintained at over 99.9%. For the Mundra Utility (MUL), unit sales rose to 234 million units in Q2FY25 from 156 million units, driven by strong industrial demand.
AESL currently has a robust pipeline of 12 projects under construction, valued at approximately ₹27,300 crore. The company anticipates fully commissioning several critical projects within the current fiscal year, with a solid near-term tendering pipeline exceeding ₹59,000 crore.
The distribution business is exhibiting steady performance with double-digit revenue growth and an expanding Regulatory Asset Base (RAB), which stands at ₹8,405 crore for AEML as of 1HFY25.
The smart metering segment is evolving positively and is poised to significantly contribute to AESL’s overall growth and profitability. The deployment of smart meters is progressing well across various regions, with an under-implementation pipeline of 22.8 million smart meters across nine projects, valued at over ₹27,195 crore. This segment is expected to create substantial synergies with the distribution business.
In another release, Adani Energy received a notice from the Securities and Exchange Board of India (SEBI), alleging the improper classification of certain investors as public shareholders. Adani Energy indicated that it would provide the necessary information and clarifications to the regulatory authorities in response to the notice.
On October 23, 2024, Adani Energy shares opened at ₹1,009.95 and touched the day high of ₹1,009.95, reflecting a rise of 2.44% at 09:53 AM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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