Adani Energy shares fall despite 148% surge in Q2 net profit; here's why 

Adani Energy Solutions Ltd shares fell 2 per cent on Thursday even as its net profit more than doubled year-on-year (YoY) to Rs 1,322.85 crore in the September quarter, from Rs 533.97 crore a year ago. The 147.73 per cent rise in profit was largely driven by tax gains of Rs 1,274.25 crore in the quarter, against a tax outgo of Rs 187.44 crore in the year-ago period.

The net profit beat the Bloomberg consensus estimate of Rs 1,082 crore.

Revenue from operations grew 52.76 per cent YoY to Rs 10,075.54 crore from Rs 6.595.80 crore YoY, supported by stronger operating performance across the portfolio, the energy solutions platform, the ongoing smart meter rollout, and higher Service Concession Arrangement (SCA) income reflecting increased capex execution. The Bloomberg consensus for revenue stood at 9679 crore.

Adani Energy said its Ebitda rose 67 per cent YoY to a record Rs 3,548 crore, supported by growth in transmission, smart metering, a significant contribution from energy solutions platform segment and steady performance in the distribution business.

Adani Energy shares fell 2.34 per cent to Rs 1,293 apiece.

“AESL closed the first half of the fiscal year with strong financial and operational momentum, laying a robust foundation for future growth. We significantly expanded our growth pipeline by winning the strategic Vizag and Satara transmission assets, elevating our active order book to ~Rs 87,000 crore,"
said CEO Kandarp Patel.

Operationally, Patel said his Mumbai distribution business grew 11 per cent in MUs sold, while smart metering platform scaled its installation base to 15 million meters.

"A significant 2.5 GW RTC power supply contract with MSEDCL reinforced AESL’s
core competencies in multi-source energy aggregation and power supply optimization for its customers. Backed by robust quarter-on-quarter performance across all business segments and strict financial prudence, we are
well-positioned to convert this massive project pipeline into long-term stakeholder value,” he said

During the previous quarter Adani Energy executed a binding securities purchase and subscription agreement to acquire a 100 per cent equity stake in IntelliSmart Infrastructure Private Limited, a leading smart metering JV between National Investment and Infrastructure Fund  and Energy Efficiency Services Limited. The proposed acquisition is seen strengthening AESL's position as India's largest smart metering platform with over 4.7 crore smart meters, Adani Energy said.

The total consideration value for the transaction was Rs 3,050 crore, and transaction closing is subject to regulatory and other customary approvals.

Besides, during the quarter, Adani Energy completed its Rs 3,500 crores qualified institutional placement. Its management committee at its meeting on July 30 approved the allotment of 2,16,71,826 equity shares of face value?10 each to eligible investors at a price Rs 1,615 per equity share.