Adani Energy Solutions shares in focus post Q4 results, business update

Adani Energy Solutions Ltd, whose shares are up 41 per cent in past six months, will be in focus on Thursday morning after the Adani group company said its net profit fell 13.3 per cent for the March quarter to Rs 381 crore from Rs 440 crore in the same quarter last year.  Profit, excluding one-off, was down 7.6 per cent at Rs 387 crore, the Adani firm said in a BSE filing.

Revenue for the quarter jumped 17.4 per cent YoY to Rs 3,560 crore from Rs 3,031 crore. operational Ebitda rose 3 per cent to Rs 1,619 crore for the quarter, with incremental revenue contribution from Warora-Kurnool, Karur, Kharghar-Vikhroli and MP-II lines and steadily regulated Ebitda from the distribution business.

In the Transmission segment, Adani Energy Solutions said it has a robust under construction project pipeline worth Rs 17,000 crore is in the execution phase. The company is on track to commission the MP-II package, NKTL (North Karanpura), Khavda Phase-II, Part-A and the WRSR (Narendra-Pune) lines in coming quarters

"The near term (12-18 months), tendering pipeline for the industry is buoyant and upwards of Rs 1.10 lakh crore under various stages," the Gautam Adani-led company said.

In the case of distribution business, Adani Energy Solutions said the segment has continued to show a steady performance with double digit revenue growth and expansion of RAB (regulatory asset base), supported by internal accruals.

"Total RAB for the distribution business has now reached Rs 8,485 crore from Rs 5,532 crore at the time of acquisition in 2018," it said.

AESL is exploring multiple areas and has applied for a parallel distribution license in Navi Mumbai in Maharashtra, Greater Noida (Gautam Buddha Nagar) in UP, and Mundra subdistrict in Gujarat.

"AEML, during the year, invested capital expenditure of over Rs 1,334 crore and reduced its long-term debt by Rs 855 crore through a bond buyback program," it said.

Meanwhile, in the case of Smart Meters, the new business segment is evolving well and would become sizeable in terms of contribution to AESL’s overall growth and profitability, the company said.

In FY24, Adani Energy Solutions received contracts of 21 million meters from Andhra Pradesh, Maharashtra, Bihar, and Uttarakhand DISCOMs. The under-implementation pipeline now stands at 22.8 million smart meters, comprising nine projects with a contract value of over Rs 27,195 crore, it said.