Adani Green Energy Reports 47% Rise In Revenue for Q1 FY25, Net Loss Widens

Adani Energy Solutions, previously known as Adani Transmission, faced a challenging June quarter with substantial financial losses. Despite robust revenue growth, increased expenses and a significant exceptional cost from divesting the Dahanu Thermal Power Plant impacted the company’s profitability.

Financial Performance and Revenue Growth

Adani Energy Solutions reported a consolidated loss of Rs 823.92 crore for the June quarter, a stark contrast to the Rs 175 crore profit recorded in the same period last year. This loss is attributed to higher expenses and an exceptional cost of Rs 1,506 crore incurred from the divestiture of the Dahanu Thermal Power Plant. However, the company’s revenue from operations saw a significant increase, growing 47 percent to Rs 5,378.6 crore from Rs 3,663.91 crore in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 30 percent, reaching Rs 1,628 crore.

The company’s revenue growth was driven by contributions from newly commissioned transmission lines, including Warora Kurnool, Karur, Kharghar-Vikhroli, and Khavda-Bhuj, as well as higher energy consumption in Adani Electricity Mumbai Limited (AEML) and MUL.

AEML Subsidiary and Divestiture Impact

Adani Electricity Mumbai Limited (AEML), a subsidiary of Adani Energy Solutions, played a significant role in the quarter’s developments. AEML approved the sale of the Dahanu Thermal Power Plant to a related party for Rs 815 crore, significantly lower than its book value of Rs 2,321.02 crore. This divestiture led to a one-time charge of Rs 1,506 crore. The deal is still pending regulatory approvals, and its completion will mark a substantial shift in the company’s asset portfolio.

Conclusion: Adani Energy Solutions experienced a difficult June quarter, marked by a substantial loss due to increased expenses and an exceptional cost from the divestiture of the Dahanu Thermal Power Plant. Nevertheless, the company’s revenue growth and operational expansion reflect its resilience and strategic efforts to strengthen its position in the power transmission sector. The stock of Adani Energy Solutions currently trades at Rs.1059.85 per share.

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.