Earnings Review
Tax reversal helps Adani Energy post 145% YoY jump in PAT
This story was originally published at 19:14 IST on 22 October 2024
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Informist, Tuesday, Oct. 22, 2024
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--Adani Energy Apr-Sept capex INR 44 bln vs INR 26.22 bln year ago
--Adani Energy sold 2.609 bln units electricity in Jul-Sept, up 7% on year
--Adani Energy Jul-Sept project pipeline INR 273 bln vs INR 170 bln qtr ago
--Adani Energy Jul-Sept consol EBITDA INR 18.91 bln, up 31% on year
--Adani Energy Jul-Sept distribution ops sales INR 30.14 bln vs INR 24.8 bln
--Adani Energy Jul-Sept transmission ops sales INR 23.03 bln vs INR 9.93 bln
--Adani Energy Apr-Sept consol revenue INR 115.62 bln vs INR 73.38 bln
--Adani Energy Apr-Sept consol net loss INR 1.49 bln vs INR 4.51 bln profit
--Adani Energy Jul-Sept consol revenue INR 61.84 bln vs INR 36.74 bln
--Adani Energy Jul-Sept consol net profit INR 6.75 bln vs INR 2.76 bln
By Sunil Raghu
AHMEDABAD – Adani Energy Solutions Ltd. posted a consolidated net profit of INR 6.75 billion for the September quarter, up 144.7% from a year ago. This is the highest on-year growth in net profit of the power utility company in 14 quarters. The company had posted a net loss of INR 8.24 billion in the Apr-Jun quarter.
The company's consolidated revenue for the quarter rose 68.3% on-year to INR 61.84 billion, led by higher sales of energy in the distribution business. The year-on-year growth in revenue in Jul-Sept is the highest in 17 quarters. This is the 14th successive quarter that the net revenue of the company has grown on year.
Besides the higher sales due to the addition of new transmission lines and growth in the distribution business, what helped the net profit to surge during the quarter was deferred tax reversal (minimum alternate tax entitlement for previous years) of INR 3.14 billion and higher earnings before interest, taxation, depreciation and amortisation.
The company's consolidated EBITDA rose 31% on year to INR 18.91 billion on the back of strong revenue growth, EPC income in transmission, treasury income and steady regulated EBITDA in Adani Electricity Mumbai Ltd., the company said in a press release.
Adani Energy Solutions saw its transmission business revenue more than double on year to INR 23.03 billion during the September quarter. The revenue from the distribution business rose 21.5% on year to INR 30.14 billion in Jul-Sept, while revenue from the trading business rose 176.8% on year to INR 4.9 billion.
In Apr-Sept, the first half of 2024-25, the company clocked a consolidated net loss of INR 1.49 billion, compared with a net profit of INR 4.51 billion in the corresponding period of last year. The consolidated revenue in Apr-Sept rose 57.6% on year to INR 115.62 billion.
The company’s total expenditure in Jul-Sept, including finance costs, rose 75.6% on year to INR 56.94 billion. The cost of power purchased rose 46.7% on year to INR 14.29 billion. The finance costs rose 26.9% on year to INR 8.13 bln rupees. The company had a tax write back of 1.79 billion in Jul-Sept compared to a tax outgo of INR 849 million a year ago.
OPERATIONAL UPDATE
Adani Energy Solutions sold 2.61 bln units of electricity in Jul-Sept, up 7% on-year, the company said in a presentation on its operational performance for the September quarter recently.
Adani Energy Solutions, which distributes power to consumers in Mumbai through its subsidiary Adani Electricity Mumbai, saw a fall in demand from the industrial sector in Jul-Sept. However, there was a jump in usage by residential customers. The industrial demand accounted for 11% of the total volume of electricity sold by Adani Energy Solutions during the quarter, as against 13% a year ago. The share of demand from the commercial segment remained at 38% in volume terms, while the share of residential demand rose to 51%% in Jul-Sept from 49% a year ago.
The slight change in the demand for power in terms of volume changed the segment-wise revenue for the company in the Jul-Sept quarter. While the industrial sector accounted for 11% of the revenue of Adani Energy Solutions in the September quarter, the commercial and residential segments accounted for 42% and 47%, respectively.
The customer base of the company rose to 3.17 million in Jul-Sept from 3.15 million a year ago and 3.20 million a quarter ago.
Adani Energy Solutions spent INR 44 billion on capital expenditure during Apr-Sept, up from INR 26.22 billion for the same period a year ago. The company added 140 circuit km during the September quarter, taking the total transmission network to 23,269 circuit km.
As of Sept. 30, the company had a total of 16 operational projects, with a network of 14,073 circuit km and worth INR 376 billion. Another nine projects worth INR 112 billion and adding 4,042 circuit km were recently commissioned. The company has 12 more projects under construction of 5,155 circuit km network worth INR 274 billion in the pipeline. The company hopes to complete these projects in a phased manner by June 2026. The company had a project pipeline of INR 170 billion a quarter ago.
Other than transmission lines, the company has nine pending orders to install 22.8 million smart meters over 120 months at a cost of INR 272 billion.
Adani Energy Solutions raised INR 83.73 billion through qualified institutional placement during the quarter.
The company also received a letter of intent for three new transmission projects in Gujarat at Jamnagar, Navinal and Khavda.
On Tuesday, shares of Adani Energy Solutions ended 0.8% lower at INR 1,009.85 rupees on the National Stock Exchange. The company announced the earnings during market hours. End
Edited by Saji George Titus
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