Representational Image/Power
Representational Image/Power
Image by analogicus from Pixabay

Adani Transmission on Friday posted 66.52 per cent jump in consolidated net profit at Rs 355.40 crore for June quarter 2020-21.

In the year-ago period, the company clocked a profit of Rs 213.42 crore, a BSE filing said.

Total income in June quarter was Rs 2,542.84 crore as compared to Rs 2,889.74 crore in the same period last year.

The company sold 1,728 million units(MU) of electricity in the quarter under review as against 2,422 MU in the year-ago period.

The electricity distribution losses stood at 13.47 per cent in the quarter compared to 7.78 per cent in the same period last year.

About the COVID-19 impact, the company said that the power sector is an essential service with must run status.

The company's (transmission) lines are operating at 99.9 per cent availabilities and there is no adverse impact on billing.

It further stated that due to lockdown, even though power demand was down due to lower consumption by industrial and commercial consumers, it was slightly offset by the retail demand.

There is no significant impact on EBIDTA margin as distribution business is a regulated asset.

About liquidity position, it said the company maintains enough liquid investments and working capital lines to meet its obligations in FY21.

The COVID-19 had no impact on transmission business, however distribution business got affected due to lower power demand from C&I (commercial and industrial) customers which had an impact on overall consolidated performance.

It also said the company is entitled to delay payment surcharge for delayed payment by customers.

"Adani Transmission is well positioned to deliver exponential growth and we are working towards fulfilling our nation's electricity needs and strengthening our position as a world class utility. Our increasingly sustainable practices will help ensure ESG (Environmental, Social, and Governance) driven goals, one that will benefit not only key stakeholders but entire nation," said Gautam Adani, Chairman, Adani Group.

The ESG refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria help determine the future financial performance of companies (return and risk) in a better way.

"Adani Transmission is constantly benchmarking to be best in class and is pursuing focused approached to be world-class integrated utility through development agenda coupled with de-risking of strategic and operational aspects, capital conservation, ensuring high credit quality and forging strategic partnerships for business excellence and high governance standards," Anil Sardana, MD and CEO, Adani Transmission, said.

The company said the economic activity in Mumbai is picking up post relaxation in lockdown and it noticed improvement in power demand in July 2020 and accordingly the collection scenario has improved substantially.

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Free Press Journal