Adani Energy Solutions (ADANIENSOL) Q1 24/25 earnings summary

Executive summary

• Revenue from operations rose 47% year-over-year to ₹5,379 crore, driven by new transmission assets, higher energy demand, and smart metering contributions.

• Operational EBITDA increased 30% year-over-year to ₹1,628 crore; adjusted PAT surged 73% to ₹315 crore, reflecting strong operational performance.

• Entered a high growth phase, supported by a robust project pipeline in transmission, distribution, and smart metering.

• Carved out the Dahanu power plant at INR 815 crore, resulting in a one-time impairment of ₹1,506 crore, aligning with the strategy to become a pure transmission and distribution utility.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024, with statutory auditor's limited review completed.

Financial highlights

• Revenue from operations: ₹5,379 crore, up 47% year-over-year; adjusted EBITDA: ₹1,762 crore, up 28%; operational EBITDA: ₹1,628 crore, up 30%.

• Adjusted PAT: ₹315 crore, up 73% year-over-year; cash profit: ₹908 crore, up 40%.

• Transmission segment revenue grew 33% (ex-incentive); distribution revenue up 23% year-over-year.

• Consolidated net loss after tax was ₹1,190.66 crore, mainly due to an exceptional item of ₹1,506.02 crore related to the planned divestment of Dahanu Thermal Power Plant.

• Transmission availability remained at 99.7%, and distribution at over 99.9%.

Outlook and guidance

• Targeting installation of 5-6 million smart meters in FY25, ramping up to 10 million annually from FY26.

• Expecting to maintain 20% annual growth at the consolidated level, supported by a strong order book and market opportunities.

• Transmission EBITDA projected to grow by 50% by FY27 based on projects in hand.

• Distribution business expected to grow steadily at 10-15% annually, driven by regulated asset base expansion.

• Smart metering business expected to become a significant growth and profitability driver.