AESL reports a 46% PAT growth in Q2 FY24; PAT at Rs 284 Cr
Q2 operational EBITDA at Rs 1,368 Cr, up 10% YoY
Revenue in Q2 FY24 increased by 13% YoY
The company has a robust and resilient business model and a strong order pipeline of Rs. 150 billion in transmission business and Rs. 230 billion in smart metering business
Editor’s Synopsis
Financial Highlights Q2 FY24 (YoY):
- Consolidated revenue increased by 13% to Rs 3,421 Cr
- Consolidated operational EBITDA grew by 10% to Rs 1,368 Cr
- PBT of Rs. 370 Cr was 48% higher YoY from a lower base. Q2 FY23 PBT was lower on account of adverse forex movement (MTM) of Rs 138 Cr (MTM adjustment on foreign currency loans)
- PAT ended 47% higher at Rs 284 Cr translating from a higher PBT
- Consolidated cash profit of Rs 757 Cr during the quarter was marginally higher
- Net debt to EBITDA stands at 3.8x as of September 2023
Operational Highlights Q2 FY24:
Transmission Business
- Fully commissioned Warora Kurnool (WKTL) and Karur (KTL) transmission lines and charged 400 kV Kharghar Vikhroli line
- Robust transmission system availability at 99.68%
- Added 219 ckms to the operational network, with the total network at 19,862 ckms
Distribution Business (AEML)
- Energy demand (units sold) is up 9.56% YoY to 2,446 million units
- Maintained supply reliability at 99.9% (ASAI)
- Distribution losses were 5.81%, improved from 6.0% in the corresponding quarter
- E-payment as a percentage of total collection was 79.2% in Q2 FY24 vs. 74.9% last year, driven by the digital adoption push
Smart Metering Business
- Received LOA for four smart metering projects in Maharashtra, AP and Bihar totaling 14.76 million smart meters with a contract value of Rs. 174 billion during the quarter
- The total smart metering under-construction pipeline stands at 19.4 million smart meters, consisting of eight projects with a contract value of Rs. 232 billion
Notes:KTL: Karur Transmission Limited; WKTL: Warora Kurnool Transmission Ltd; KVTL: Kharghar Vikhroli Transmission Ltd. ASAI: Average Service Availability Index; Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM option loss; CCS: Cross-currency Swap
Ahmedabad, 06 November 2023: Adani Energy Solutions Limited (“AESL”), part of the globally diversified Adani portfolio, 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, 2023.
Financial Highlights – Consolidated (Transmission and Distribution(1)):
|
Particulars (Rs. crore) |
Q2 FY24 |
Q2 FY23 |
YoY % |
1H FY24 |
1H FY23 |
YoY % |
|
Revenue |
3,421 |
3,032 |
12.8% |
7,042 |
6,081 |
15.8% |
|
Operational EBITDA |
1,368 |
1,241 |
10.2% |
2,622 |
2,454 |
6.9% |
|
Total EBITDA |
1,443 |
1,326 |
6.0% |
2,821 |
2,688 |
5.0% |
|
PBT |
370 |
250 |
48.1% |
713 |
452 |
57.9% |
|
PAT |
284 |
194 |
46.1% |
466 |
363 |
28.5% |
|
EPS (Rs) |
2.47 |
1.85 |
33.5% |
4.04 |
3.35 |
20.6% |
|
Cash Profit# |
757 |
748 |
1.2% |
1,406 |
1,479 |
-4.9% |
- Consolidated revenue in Q2 FY24 witnessed double-digit growth on account of newly commissioned lines (WKTL, JKTL, WRSS, and LBTL), commissioning of elements at NKTL and MP-II lines, an increase in energy consumption in the Mumbai Distribution business (AEML), and new customer additions
- Consolidated EBITDA increased to Rs 1,443 Cr in the first quarter, a 6% YoY increase
- PBT came in at Rs 370 Cr, an increase of 48% YoY; In Q2 FY24, the consolidated PAT of Rs 284 Cr was 46% higher YoY
Segment-wise Financial Highlights:
|
Particulars (Rs. crore) |
Q2 FY24 |
Q2 FY23 |
YoY % |
1H FY24 |
1H FY23 |
YoY% |
|
Transmission Segment |
||||||
|
Operational Revenue |
941 |
868 |
8.4% |
1,825 |
1,704 |
7.1% |
|
Operational EBITDA |
854 |
786 |
8.6% |
1,661 |
1,553 |
7.0% |
|
Margin (%) |
91% |
91% |
- |
91% |
91% |
- |
|
Total EBITDA |
907 |
834 |
8.8% |
1,769 |
1,644 |
7.6% |
|
PBT |
305 |
305 |
0.0% |
600 |
607 |
-1.1% |
|
PAT |
259 |
239 |
8.5% |
421 |
473 |
-11.0% |
|
Cash Profit |
501 |
480 |
4.2% |
918 |
948 |
-3.1% |
|
|
|
|
|
|
|
|
|
Distribution Segment(1) |
|
|
|
|
|
|
|
Revenue |
2,480 |
2,164 |
14.6% |
5,217 |
4,377 |
19.2% |
|
Operational EBITDA |
514 |
455 |
12.9% |
961 |
901 |
6.7% |
|
Total EBITDA |
536 |
528 |
1.5% |
1,052 |
1,044 |
0.8% |
|
PBT |
65 |
-55 |
217.8% |
113 |
-155 |
173% |
|
PAT |
25 |
-45 |
155.1% |
45 |
-110 |
141% |
|
Cash Profit |
256 |
268 |
-4.2% |
488 |
531 |
-8.0% |
- The increase in distribution revenue is on account of higher units sold and on account of customer acquisitions
- The distribution business continued to deliver strong performance, with double-digit growth in revenue and operational EBITDA during the quarter
- PAT in the transmission business in 1H FY24 declined due to a higher tax outgo of Rs. 65 Cr on dividend income at the parent AESL level
Segment-wise Key Operational Highlights:
|
Particulars |
Q2 FY24 |
Q2 FY23 |
Change |
|
Transmission business |
|||
| Average Availability (%) | 99.7% | 99.7% | In line |
| Transmission Network Added (ckm) | 219 | 352 | Lower |
|
Distribution business(AEML) |
|||
| Supply reliability (%) | 99.99% | 99.99% | In line |
| Distribution loss (%) | 5.81% | 6.0% | Higher |
| Units sold (MU's) | 2,446 | 2,233 | Higher |
- AEML, the No. 1 utility in the country, continues to provide a unique proposition of competitive tariffs and renewable energy to its customers. The proportion of renewable power in the total energy mix further increases to 38%
- Fully commissioned WKTL and KTL lines and charged KVTL line
- Added 219 ckm in Q2 FY23 and maintained system availability at 99.68%
- Energy demand (units sold) improved by 9.5% YoY, driven by an increase in industrial segment demand
- Distribution losses in AEML in Q2 were 5.81%, with a higher share of e-payments at 79.2%
Recent Developments, Achievements and Awards:
- AEML, Mumbai’s primary and most preferred power utility, is now alsoIndia'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)
- “Platinum Award” for Occupational Health and Safety under the 8th Apex India Occupational Health and Safety Award 2023 by Apex India Foundation
- Economic Times HR World honoured Adani Electricity Mumbai Limited in July’23 with the highest award in the category of Best Innovative Leadership Development Programme for Adani Electricity’s ‘AE-Marvels’.
- AESL 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
- AESL is in the Top 50 of India’s Most Sustainable Companies in the annual ranking of BW Business World. AESL was featured in the top 3 most sustainable companies by prioritising sustainable practices
- Single-use Plastic Free, Zero Waste to Landfill (ZWL), and Net Water Positive certifications from independent agencies like DNV, Intertek, and CII
Notes: 1) Distribution segment includes AEML Mumbai and Mundra Utilities Ltd. (MUL). MUL was acquired in December 2021 and included in Distribution segment from Q4FY22 onwards; KTL: Karur Transmission Limited; WKTL: Warora Kurnool Transmission Ltd; KVTL: Kharghar Vikhroli Transmission Ltd. ASAI: Average Service Availability Index; Cash profit calculated as PAT + Depreciation + Deferred Tax + MTM option loss; CCS: Cross-currency Swap
Mr. Anil Sardana, MD, Adani Energy Solutions Ltd., said, "AESL remains steadfast in its performance and continues to expand into multiple energy solution areas. It has been demonstrating its execution prowess by commissioning assets despite significant inherent challenges. AESL’s growth trajectory remains significant despite a challenging macroeconomic environment. Our pipeline of projects in both transmission and smart metering will further strengthen our pan-India presence and consolidate our position. AESL 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."