Adani Energy Solutions Reports 27% Decline in Net Profit to Rs 348 Crore in October-December Quarter

Adani Energy Solutions Ltd (AEML) reported a more than 27% decline in its consolidated net profit, amounting to Rs 348.25 crore for the October-December quarter, in comparison to the same period the previous year. The country’s largest private power transmission and distribution company had recorded a consolidated net profit of Rs 478.07 crore in the quarter concluding on December 31, 2022, primarily due to a one-time regulatory income of Rs 240 crore.

AEML clarified in an exchange filing that the net profit in Q3 of this fiscal year includes a miscellaneous income of Rs 136 crore related to the USD 120 million bond buy-back. The comparable PAT (Profit After Tax) of Rs 281 crore was 1% higher compared to Rs 280 crore in the corresponding quarter of the previous year.

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Total income saw an increase to Rs 4,824.42 crore in the third quarter of FY24 from Rs 3,719.31 crore in the same period a year ago. The operational parameters were robust, with an average system availability of over 99.7%.

AEML expanded its transmission network by adding 302 circuit kilometers during the quarter, reaching a total of 20,422 circuit km. The company sold 2,489 million units, up from 2,169 million units the previous year, driven by higher industrial demand.

Distribution loss improved to 5.46% in the third quarter of FY24, maintaining supply reliability at over 99.9%. The company has an under-construction transmission pipeline worth Rs 17,000 crore and is on track to commission various projects in the coming quarters.

In the near term (12-24 months), the tendering pipeline for the industry is robust, exceeding Rs 1.10 lakh crore at various stages of bidding. The distribution business continues to show steady performance with double-digit growth and an increasing Regulatory Asset Base (RAB).

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The under-implementation pipeline includes 21.1 million smart meters, comprising nine projects with a contract value of over Rs 25,000 crore. The untapped market for smart meters is significant, with the government targeting 250 million by 2026.

Anil Sardana, MD of Adani Energy Solutions, mentioned, “Our growing portfolio with newly commissioned lines, coupled with favorable energy demand, continues to drive our growth.” Kandarp Patel, the CEO, highlighted the consistent growth in the smart metering segment and emphasized the strategic partnerships to enhance their tech-enabled smart metering solutions.

AEML’s Mumbai distribution business witnessed a 14.8% increase in energy consumption, maintaining one of the lowest distribution losses at 5.46%. The company added new consumers, reaching 3.16 million, driven by reliable and affordable power supply.