Adani Energy Solutions shares in focus after 6% drop in Q1 profit

Shares of Adani Energy Solutions (erstwhile Adani Transmission Ltd) will be in focus on Tuesday morning after the Adani group company reported a 5.88 per cent year-on-year (YoY) drop in its June quarter profit. The largest private transmission and distribution company said its consolidated profit came at Rs 175.06 crore for the quarter compared with Rs 185.99 crore in the same quarter last year.

Adani Energy Solutions' growth trajectory remains firm despite the challenging macroeconomic environment, MD Anil Sardana said adding that the company's pipeline of projects and recently operationalised assets will further strengthen its pan-India presence and consolidate its position as the largest private sector transmission and distribution company in India.

Adani Energy Solutions, whose shares are up 6.3 per cent in the last one month,  said its consolidated cash profit fell 11 per cent to Rs 649 crore for the quarter due to the one-time tax impact of Rs 65 crore on dividend from its subsidiary AEML and additional cash out go of Rs 20 crore for hedging cost on moving to CCS from option contracts.

Adani Energy Solutions said its total income for the quarter jumped 16.08 per cent to Rs 3,772.25 from Rs 3,249.74 crore in the corresponding quarter last year.

Adani Energy Solutions said distribution revenues rose on account of higher unit sold and the recovery of the past period regulatory gap of Rs 183 crore, included in the regulatory deferral balances. It noted that the Transmission business profit declined due to a higher tax outgo of Rs 65 crore on dividend income at the parent level, whereas distribution PAT was Rs 20 crore compared to Rs 66 crore loss YoY on account of mark-to-market movements of foreign currency loans in the previous periods.

In terms of distribution business, Adani Energy Solutions said the supply reliability stood at 99.9 per cent. Energy demand (units sold) was up 7.6 per cent YoY. Distribution losses were at 4.85 per cent. The loss was lower than usual due to seasonality, the company said. E-payment as a percentage of total collection was 78.5 per cent in Q1 FY24 against 74.7 per cent last year, driven by the digital adoption push.

For smart metering business, Adani Green Solutions received LoA (Letter of Award) for three projects in Andhra Pradesh with a contract value of Rs 3,700 crore during the quarter. The total smart metering under-construction pipeline consists five projects with a contract value of Rs 5,800 crore.

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