Adani Energy Solutions (ADANIENSOL) Q3 23/24 earnings summary

Executive summary

• Revenue rose 19% YoY to Rs 3,615 crore in Q3 FY24, driven by new transmission lines and higher energy demand in Mumbai distribution; board approved unaudited standalone and consolidated results for Q3 and nine months ended 31 Dec 2023.

• Operational EBITDA increased 10% YoY to Rs 1,454 crore; comparable PAT grew 1% to Rs 281 crore; consolidated Q3 net profit was Rs 348 crore with strong margins.

• Transmission network expanded by 302 ckm, reaching 20,422 ckm, with system availability at 99.7%; acquisition of Halvad Transmission Limited completed in Q3.

• Smart metering order book reached 21.1 million meters (Rs 25,000 crore contract value); 2 million meters awarded in Q3; Essar Power Transmission acquisition expected to close by March 2024.

• Adani Electricity Mumbai achieved 35% renewable energy share, with distribution losses reduced to 5.46%; Mumbai powered 100% by renewable electricity for four hours during Diwali.

Financial highlights

• Q3 FY24 revenue: Rs 3,615 crore (+19% YoY); 9M FY24 revenue: Rs 10,657 crore (+17% YoY); consolidated Q3 revenue from operations: Rs 4,824 crore; nine months: Rs 12,537 crore.

• Q3 operational EBITDA: Rs 1,454 crore (+10% YoY); 9M operational EBITDA: Rs 4,077 crore (+8% YoY); Q3 consolidated EBITDA margin: 32.23%; net profit margin: 7.22%.

• Q3 comparable PAT: Rs 281 crore (+1% YoY); 9M comparable PAT: Rs 812 crore (+26% YoY); Q3 consolidated net profit: Rs 348 crore; nine months: Rs 814 crore.

• Q3 cash profit (ex one-time): Rs 786 crore (+4% YoY); 9M cash profit: Rs 2,257 crore (+1% YoY); one-time income of Rs 136 crore recognized from partial repurchase of $120 million bond.

• Q3 PAT includes Rs 136 crore miscellaneous income from $120 million bond buy-back; Q3 FY23 PAT included Rs 240 crore one-time regulatory income.

Outlook and guidance

• Under-construction transmission pipeline of Rs 17,000 crore and smart metering pipeline of Rs 25,100 crore; annual capex plan of Rs 5,000–7,000 crore.

• Targeting 60% renewable power procurement by FY27; committed to Net Zero by 2050; exploring parallel distribution licenses in Navi Mumbai, Greater Noida, and Mundra.

• Essar Power Transmission acquisition expected to close by March 2024, pending regulatory approvals.