Adani Transmission Limited: Consolidated Results for FY23 and Q4FY23

Ahmedabad, 29 May 2023: Adani Transmission Limited (“ATL”), the largest private transmission and distribution company in India and part of the globally diversified Adani portfolio, today announced its financial and operational performance for the quarter and year ended March 31, 2023.

“The exceptional resilience of the Adani Group’s business model has once again been validated by our strong financial performance,” said Mr Gautam Adani, Chairman, Adani Group. “We are leaders in the transmission and distribution space and have consistently set new industry standards in efficiency, performance, and asset development. Adani Transmission is well positioned to deliver exponential growth, and we are working towards fulfilling our nation’s massive electricity needs and strengthening our position as a world class utility. We are accelerating the transition to a sustainable and reliable grid and are committed to our pursuit of energizing and ensuring continuous and reliable power supply across all regions through our assets in India. Our focus remains strong on cashflow generation, operational excellence, and governance.”

Financial Highlights – Consolidated (Transmission and Distribution

• Consolidated revenue in Q4FY23 and FY23 witnessed double-digit growth on account of new transmission lines becoming operational and an uptick in energy consumption

• Consolidated EBITDA increased to Rs 1,706 Cr in the fourth quarter, a 23% YoY increase. EBITDA for the full year FY23 increased 11% to Rs 6,101 Cr

• In Q4FY23, the consolidated PAT of Rs 440 Cr was 85% higher YoY. The increase was primarily driven by one-time income of Rs 148 Cr (net off tax Rs 122 Cr) from regulatory order in the Transmission business (a net positive impact of Rs 21 Cr after adjusting for a provision of Rs 131 Cr (net off tax Rs 101 Cr)) and aided by a mid-term true-up order by the regulator in AEML

• Consolidated cash profit of Rs 977 Cr in Q4FY23 increased by 28% YoY. On a full year basis, the cash profit of Rs 3,411 Cr grew by 12% YoY

Segment-wise Financial Highlights:

• Transmission business revenue growth in Q4 was driven by newly commissioned lines, and Distribution revenue increased on account of a consistent uptick in energy demand

• During the quarter, Transmission EBITDA grew by 9% to Rs 872 Cr, and Distribution EBITDA jumped 43% to Rs 834 Cr

• Q4 PAT in the Transmission business grew 11% to Rs 221 Cr, and Distribution PAT at Rs 218 Cr grew 478% YoY, aided by a mid-term true-up order by the regulator

Segment-wise Key Operational Highlights:

• Operationalized 609 ckm in Q4FY23 and maintained system availability at 99.68%

• Energy demand (units sold) improved by 11.5% YoY in Q4FY23, driven by a rise in commercial segment and industrial segment demand

• Distribution losses in Q4 were at 4.89%, and collection efficiency remained above 100%

• AEML continues to provide its customers with a unique proposition of competitive tariffs and renewable energy, with solar and wind accounting for 30% of their energy mix.

Recent Developments, Achievements and Awards:

• ATL received the ‘Emerging Company of the Year Award – 2022’ at the ET Awards on Corporate Excellence in recognition of its growth, scale, and sustainable business practices

• AEML, Mumbai’s primary and most preferred power utility, is now also India’s No. 1 power utility, per the Ministry of Power’s 11th Annual Integrated Rating and Ranking for Power Distribution, a report prepared by McKinsey & Company and PFC (the nodal agency)

• World Sustainability has given the Global Sustainability Leadership Award in the category of “Best Sustainable Strategies — Power Industry.”

• Enlightened Growth Leadership Award 2022 for best-in-class sustainable business practices from Frost & Sullivan Institute

• Received ICAI Awards for Excellence in Financial Reporting for the year 2021-22 (Bronze Plaque in Infrastructure and Construction Sector Category (turnover above Rs 500 Cr))

• Adani Transmission has pledged to become Net Zero by 2050, limiting global warming to 1.5 °C above pre-industrial levels through measurable actions, and has become a Signatory to the UN Energy Compact to further SDG 7 (Affordable and Clean Energy)

• ATL’s operational sites are certified as Single-use Plastic Free, Zero Waste to Landfill (ZWL), Net Water Positive from independent agencies like DNV, Intertek, and CII

Notes: 1) Q4FY23 and FY23 Operational Revenue and Operational EBITDA doesn’t include arrears of Rs 148 Cr and Rs 389 Cr respectively approved in MERC order in June’21 determining and allowing MEGPTCL to claim incremental Aggregate Revenue Requirement (ARR) based on Appellate Tribunal for Electricity order (APTEL); 2) Distribution segment includes AEML Mumbai and Mundra Utilities Ltd. (MUL). MUL was acquired in December 2021 and included in Distribution segment from Q4FY22 onwards; Jam Khambhaliya Transco Ltd (JKTL) and WRSS XXI (A) – Western Region System Strengthening XXI (A) Line

Mr. Anil Sardana, MD, Adani Transmission Ltd., said, “ATL is constantly evolving and is already a significant player in the T&D sector. ATL’s growth trajectory remains firm despite the challenging macroeconomic environment. Our pipeline of projects and recently operationalised assets will further strengthen our pan-India presence and consolidate our position as the largest private sector transmission and distribution company in India. ATL is consistently benchmarking to be the best-in-class and is pursuing disciplined growth with strategic and operational de-risking, capital conservation, ensuring high credit quality, and business excellence with high governance standards. The journey towards a robust ESG framework and practising a culture of safety is integral to our pursuit of enhanced long-term value creation for all our stakeholders.”