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.
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
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.
