Ahmedabad, 22 October 2024: 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 and half year ended September 30, 2024.
“We are pleased to have delivered another quarter with robust operating and financial performance. The company remains focused on timely project commissioning as well as achieving operating efficiencies. The power demand trends in both utilities and new transmission project wins are very encouraging and we are making progress with the installation of smart meters in all our contracts. Our credible steps of successfully divesting the Dahanu thermal plant in line with our commitment and achieving an all-time high share of 39% renewable power penetration in Mumbai strengthens our position as true energy transition leader in India. We are also pleased to share that prestigious business magazine Businessworld has recognized AESL as one of the India’s Most Sustainable Companies with a 2nd position in the Energy and Mining Sector and 23rd in the overall list. This demonstrates our unwavering dedication to reduce our carbon footprint and promote sustainable business practices,” said Kandarp Patel, CEO, Adani Energy Solutions.
Q2 FY25 Highlights:
Consolidated Financial Performance (Rs crore)
| Particulars | Q2 FY25 | Q2 FY24 | YoY % | 1H FY25 | 1H FY24 | YoY % |
| Total Income | 6,360 | 3,766 | 68.9 | 11,850 | 7,539 | 57.2 |
| Operational Revenue | 4,217 | 3,421 | 23.3 | 8,768 | 7,042 | 24.5 |
| Total EBITDA | 1,891 | 1,443 | 31.0 | 3,653 | 2,821 | 29.5 |
| Operating EBITDA | 1,626 | 1,368 | 18.9 | 3,235 | 2,622 | 23.4 |
| PAT | 773^ | 284 | 172.2 | 1,088# | 466 | 133.4 |
| Adjusted PAT | 459* | 284 | 61.6 | 774* | 466 | 66.1 |
| Cash profit | 1,026^ | 757 | 35.4 | 1,934# | 1,406 | 37.5 |
(Note: Total Income = Operational revenue + income from SCA/EPC/traded goods + One time income/expense + Other Income; Total EBITDA = Operating EBITDA plus other income, one-time regulatory income, adjusted for CSR exp.; Cash profit calculated as PAT + Depreciation and amortization expenses + Deferred Tax + MTM option loss); #Adjusted for an exceptional item due to carve-out of the Dahanu power plant of Rs 1,506 crore; ^Includes deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore in Q2FY25; *Adjusted for one-time deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore
Income: Total income witnessed robust growth of 69% on account of the contribution of the newly operationalized transmission assets (KVTL, KBTL, WKTL lines), partial completion of lines at under-construction projects (MP-II) and an increase in energy sales because of strong demand growth in distribution business at Mumbai and Mundra and growing 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 7%. Its distribution losses of 4.85% remain low and the utility added new consumers, reaching 3.17 million on the back of reliable and affordable power supply
EBITDA:
- EBITDA increased by 31% to Rs 1,891 crore for the quarter translating from strong revenue growth across all segments, EPC income in transmission, treasury income and steadily regulated EBITDA from the Distribution business
- The operational EBITDA of Rs 1,626 crore in Q2 ended 19% higher. The transmission business continues to maintain the industry’s leading operating EBITDA margin of 92%
PAT: PAT of Rs 773 crore in Q2FY25 was 172% higher YoY, translating from a strong EBITDA growth and boosted by deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore
Segment-wise Financial Highlights: (Rs crore)
| Segment | Particulars | Q2 FY25 | Q2 FY24 | YoY % | 1H FY25 | 1H FY24 | YoY% |
| Transmission | Op Revenue | 1,197 | 941 | 27.2 | 2,372 | 1,825 | 30.0 |
| EBITDA | 1,278 | 907 | 40.9 | 2,426 | 1,769 | 37.2 | |
| PAT | 364 | 259 | 40.2 | 614 | 421 | 45.8 | |
| Cash Profit | 690 | 501 | 37.7 | 1,261 | 918 | 37.3 | |
| Distribution (AEML and MUL) | Op Revenue | 3,014 | 2,480 | 21.5 | 6,386 | 5,217 | 22.4 |
| EBITDA | 588 | 536 | 9.8 | #1,180 | 1052 | 12.2 | |
| PAT | 398 | 25 | 1518.8 | #449 | 45 | 898.1 | |
| Cash Profit | 323 | 256 | 25.9 | #643 | 488 | 31.7 |
Note: #Adjusted for an exceptional item because of carve-out of the Dahanu power plant in line with Ind AS 105 of Rs 1,506 crore. KVTL – Kharghar Vikhroli, KBTL – Khavda Bhuj, WKTL: Warora Kurnool, MP-II: MP Package II
Segment-wise Key Operational Highlights:
| Particulars | Q2 FY25 | Q2 FY24 | Change |
| Transmission business | |||
| Average Availability (%) | 99.7% | 99.7% | In line |
| Transmission Network Added (ckm) | 140 | 219 | Lower |
| Total Transmission Network (ckm) | 23,269 | 19,862 | Higher |
| Distribution business (AEML) | |||
| Supply reliability (%) | 99.99% | 99.99% | In line |
| Distribution loss (%) | 4.85% | 5.81% | Higher |
| Units sold (MU’s) | 2,609 | 2,446 | Higher |
| Distribution business (MUL) | |||
| Units sold (MU’s) | 234 | 156 | Higher |
Transmission business:
- On operational parameters, it was a strong quarter, with an average system availability of over 99.7%. Robust line availability resulted in an incentive income of Rs 35 crore in Q2FY25
- During the quarter, the company won three new transmission projects with a project cost of ~Rs. 10,300 crore – NES in Jamnagar Gujarat, NES in Navinal (Mundra), Khavda Phase IVA adding 2,059 ckm to under construction network
- Added 140 circuit kilometers during the quarter and ended with a total transmission network of 23,269 circuit kilometers
Distribution business (AEML Mumbai and MUL Mundra):
- Sold 2,609 million units in AEML vs. 2,446 million units YoY on account of an uptick in energy demand
- The distribution loss at AEML has been improving consistently and stands at 4.85% in Q2FY25. Maintained supply reliability at over 99.9%
- The units sold in MUL (Mundra) utility was 234 MUs in Q2FY25 as against 156 MUs on the back of strong industrial demand
Segment-wise Progress and Outlook:
Transmission:
- Robust under construction project pipeline of 12 projects worth ~Rs 27,300 crores are currently under the execution phase
- We expect to fully commission the MP-II package, Sangod, NKTL (North Karanpura), Khavda Phase-II, Part-A and the WRSR (Narendra-Pune) lines in the current fiscal year
- The near-term tendering pipeline for the industry is solid and upwards of Rs 59,000 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 AEML business, including GTD divisions, stands at Rs 8,405 crores as of 1HFY25
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
- Project set-up and meter deployment is progressing well across all the regions
- The under-implementation pipeline stands at 22.8 million smart meters, comprising nine projects with a contract value of over Rs 27,195 crore
ESG Updates:
- AESL concluded the divestment of 500 MW of Adani Dahanu Thermal Power Station in line with its ESG philosophy. This landmark step places 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 all-time high of 39% at the end of September 2024
- Scored 97% in the World Disclosure Initiative (WDI) survey, by Thomson Reuters Foundation well above the energy sector and country averages of 76% and 60% respectively
- Awarded one of the India’s Most Sustainable Companies by Business World in 2024. The Company has secured 2nd position in the Energy and Mining Sector and ranked 23rd in the overall list, up from 45th position in 2023
- Adani Electricity and Adani Foundation, through their CSR initiative ‘Swabhimaan Project,’ has empowered over 4,000 underprivileged women, providing them with skill development training and opportunities to earn a sustainable livelihood
Achievements:
- Economic Times HR, and the prestigious Brandon Hall HCM (Human Capital Management) has awarded Adani Marvels, a leadership development program at AEML, the “Best Leadership Development Program” in the USA
- The Mumbai utility received eight awards in various categories at 10th National Conclave on 5S organized by the Quality Circle Forum of India (QCFI), demonstrating its unparallel commitment to operational excellence
- AEML has been awarded the Gold Award for Best Learning Culture in an Organization – Large Scale Enterprises by ET HRWORLD from The Economic Times