Adani Energy Solutions (ADANIENSOL) Q4 23/24 earnings summary

Executive summary

• Consolidated revenue for FY24 rose 17% year-over-year to Rs 14,217 crore in one report and ₹17,218 crore in another, with operational EBITDA up 7% to Rs 5,695 crore and comparable PAT up 12% to Rs 1,197 crore; net profit reported as ₹1,196 crore in another source.

• Transmission network expanded by 1,244 ckm in Q4, reaching 20,509 ckm, with system availability at 99.6%; transmission segment revenue and EBITDA grew 14% YoY.

• Smart Metering business secured contracts for 21 million meters, with an under-implementation pipeline of 22.8 million meters valued at over Rs 27,195 crore; segment revenue reported as ₹290.86 crore.

• AEML Distribution business saw 9.43% YoY growth in units sold, with distribution loss reduced to 5.29%; distribution revenue up 18% YoY but EBITDA down 4% YoY.

• Board approved audited standalone and consolidated results for FY24 and Q4, with AGM scheduled for June 25, 2024; statutory auditors issued a qualified opinion due to ongoing regulatory investigations related to a prior short seller report, with no quantifiable impact on financials.

Financial highlights

• Q4 FY24 revenue up 17% YoY to Rs 3,560 crore; operational EBITDA up 3% YoY to Rs 1,619 crore; comparable PAT down 8% YoY to Rs 387 crore.

• FY24 consolidated revenue up 17% YoY to Rs 14,217 crore; operational EBITDA up 7% YoY to Rs 5,695 crore; comparable PAT up 12% YoY to Rs 1,197 crore; EBITDA for FY24 reported as ₹4,546 crore.

• Cash profit (excluding one-time items) for FY24 at Rs 3,212 crore; net profit after tax for FY24 stood at ₹1,195.61 crore.

• Transmission segment FY24 revenue up 14% YoY; distribution segment revenue up 18% YoY; transmission EBITDA up 14% YoY; distribution EBITDA down 4% YoY.

• Basic EPS for FY24 was ₹10.20, down from ₹11.10 in FY23; consolidated net profit margin for FY24 was 6.94%, down from 9.25% in FY23.

Outlook and guidance

• Robust under-construction pipeline: Rs 170 billion in Transmission and Rs 272 billion in Smart Metering; acquisition of Essar Power Transmission project expected to close by June 2024.

• Targeting expansion in distribution to new geographies and RAB growth in Mumbai; management expects no material impact from regulatory investigations based on legal advice and Supreme Court orders.

• Annual capex plan of Rs 50-70 billion in the near-to-medium term; committed to achieving 60% renewable power procurement by FY27 (35% achieved in FY24) and Net Zero commitment by 2050.