Last Updated on November 8, 2023 by BFSLTeam BFSLTeam
On 6 November 2023: Adani Energy Solutions Limited (BSE, NSE: ADANIENSOL) announced its Q2 2023-24 financial results, posting a huge 45% PAT growth, Operating EBITDA up YoY, and a surge in Revenue YoY.
Table of Content
Resilient Financial Result Takeaways
Here are the financial highlights of Q2 results:
- Based on its Q2 results, the company has displayed a healthy business model and a sound order pipeline reaching ₹15,000 Cr in the transmission business and ₹23,000 Cr in the smart metering business.
- The Consolidated revenue has increased to ₹3,421 Cr, a rise of 13%.
- The Consolidated Operational EBITDA surged by 10% and reached ₹1,368 Cr.
- The Profit Before Tax (PBT) was at ₹370 Cr and was 48% higher YoY than in Q2 FY22-23 when it was at ₹138 Cr. The previous fiscal same quarter was adversely affected by forex movements, while this quarter was unaffected, relatively.
- The Profit After Tax (PAT) was at ₹284 Cr, 47% higher than the PAT in Q2 FY22-23. This was due to a higher PBT in this current Q2.
- The Consolidated Cash Profit at ₹757 Cr during Q2 FY23-24 was marginally higher than that in Q2 FY22-23.
- Net Debt to EBITDA stood at 3.8x at the close of the current fiscal Q2.
Operational Highlights
Here are the business highlights of Q2:
- Regarding the Transmission Business, Q2 witnessed the fully commissioned Karur (KTL) and Warora Kurnool (WKTL) transmission lines, as well as the charging of the 400 kV Kharghar Vikhroli Line. Additionally, as regards this side of the business, there was strong transmission availability at 99.68%, and 219 ckms was added to the operational network, with the entire network at 19,862 ckms.
- In terms of the Distribution Business (AEML), the energy demand as reflected by the units sold is up by 9.56% YoY, reaching 2,446 million units. Additionally, supply reliability was maintained at 99.9% (ASAI). It is also important to note that distribution losses were at 5.81% in the current fiscal Q2, versus 6.0% in Q2 FY22-23. Also, e-payment as a percentage of the total collection was at 79.2% in Q2 FY23-24 as opposed to 74.9% in Q2 FY22-23. The improved collection in the current year’s Q2 was largely due to a boost in digital adoption.
- As far as the Smart Metering Business goes, the company has received LOA for four smart metering projects in AP, Maharashtra, and Bihar reaching a total of 14.76 million smart meters and a corresponding contract value of Rs. 17,400 Cr in Q2. With this, the total smart metering “under-construction” pipeline amounts to 19.4 million smart meters and 8 projects with a corresponding contract value of ₹23,200 Cr.
Additional Read: Q2 Results Dashboard
Recognition with Results
Besides the financial and business outcomes of the Q2 report, the company had some accolades and recognitions to share and some key ones are mentioned below:
- Mumbai’s primary and most preferred power utility, AEML, is now also India’s top power utility (as per the Ministry of Power’s 11th Annual Integrated Rating and Ranking for Power Distribution).
- The company has received the Platinum Award for Occupational Health and Safety 2023 from the Apex India Foundation.
- AESL received the Emerging Company of the Year Award (2022) at the ET Awards on Corporate Excellence in acknowledgment of its scale, growth, and sustainable practices.
Also Read: Adani Green Energy Share Price
Management Commentary
The MD of Adani Energy Solutions Limited had some reflections on the results and these are indicated below:
- The company has displayed a steadfast level of performance as it continues its journey of expansion into several energy solution spheres.
- The growth trajectory of the company is strong despite challenging macroeconomic factors.
- The company’s pipeline of projects in the areas of smart metering and transmission will lead to strengthening the company’s pan-India presence.
- The company is constantly striving to be the best-in-class energy solutions provider as it makes an active effort to pursue disciplined growth with strategic and operational de-risking, ensuring capital conservation and high credit quality.
Financial Results
Here are the financial results (Consolidated – Transmission and Distribution) of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 | YoY % |
| Revenue | 3, 421 | 3,032 | 12.8% |
| Total EBITDA | 1,443 | 1,362 | 6.0% |
| Profit Before Tax | 370 | 250 | 48.1% |
| Profit After Tax | 284 | 194 | 46.1% |
About Adani Energy Solutions Ltd.
The year 2006 saw the foray of the Adani Group into the power transmission sector in India. This was a long time before Adani Energy Solutions Limited was conceived. Nonetheless, Adani Energy Solutions Limited was carved out of the Adani Group to facilitate power transmission lines in specific areas. Part of the huge Adani portfolio, this company has a prominent presence in multiple facets of the domain of energy, including smart metering, distribution, transmission, and energy cooling.
As India’s largest private company involved in energy transmission, the company boasts a key presence in 16 states plus a full transmission network comprising 19,800 ckm, not to mention a transmission capacity of 53,000 MVA. Adani Energy Solutions Limited is responsible for serving over 12 million consumers within the Mumbai metropolitan area plus the industrial area of Mundra SEZ. The company is on course with the ramping up of its smart metering business and is likely to become the leading integrator of smart metering in the country. Via the expansion of its distribution network facilitated by parallel licencing, plus competitive solutions on the retail side, the company is forging ahead and revolutionising the means of energy delivery to consumers. The company is strict about its mission to deliver the most affordable, reliable, and sustainable energy to the Indian consumer.
Source:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/484c574f-1c53-4301-9dea-c07d8338f608.pdf
