Adani Energy Solutions posts strong Q1 FY25 performance, PAT up 73%

Adani Energy Solutions Limited. India's largest private transmission and distribution company, has announced its financial and operational performance for the quarter ending June 30, 2024.

AESL's revenue from operations reached Rs 5,379 crore, marking a significant 47 per cent year-on-year growth, driven by newly operationalised transmission assets and increased energy consumption in its distribution business. The operational EBITDA stood at Rs 1,628 crore, up 29.7 per cent YoY, while the total adjusted EBITDA was Rs 1,762 crore, reflecting a 27.9 per cent increase. This growth was underpinned by contributions from Warora-Kurnool, Karur, Kharghar-Vikhroli, and Khavda-Bhuj transmission lines, along with the acquisition of Mahan Sipat transmission assets.

Adjusted profit after tax (PAT) rose by 73 per cent to Rs 315 crore, supported by strong EBITDA performance.

AESL's transmission business maintained a robust system availability of 99.7 per cent, adding 190 circuit kilometers during the quarter to achieve a total transmission network of 21,187 circuit kilometers. The company completed the acquisition of Mahan Sipat transmission assets, adding 673 circuit kilometers to its operational network.

The distribution business, covering Adani Electricity Mumbai Limited (AEML) and Mundra Utility Limited (MUL), saw an 8 per cent increase in energy consumption, selling 2,962 million units in AEML and 226 million units in MUL. The distribution loss was maintained at a low 5.18 per cent, with supply reliability exceeding 99.9 per cent.

AESL's smart metering segment is progressing well, with an under-implementation pipeline of 22.8 million smart meters valued at over Rs 27,195 crore.

ESG and sustainability initiatives

Dahanu Thermal Plant Divestment: In line with its ESG commitment, AESL has initiated the divestment of the Dahanu thermal power plant, aiming to improve its ESG ratings and reduce environmental impact.
Renewable Energy Penetration: AEML successfully increased its renewable energy share to 37 per cent of the power supplied in Mumbai, demonstrating the company's dedication to decarbonisation.
ESG Ratings Improvement: AESL's ESG score in the FTSE4Good Index was upgraded to 4.4, with significant improvements in the environment score. The company's CDP Climate Change 2023 score improved to 'B' from 'D', and its ESG score from Sustainalytics improved to 25.3 from 32.8, placing it among the top global utilities.

AESL's transmission segment has a strong project pipeline worth Rs 17,000 crore, with several projects expected to be commissioned in the coming quarters. The company is exploring new opportunities and has applied for parallel distribution licenses in Navi Mumbai, Greater Noida, and Mundra subdistrict.

Anil Sardana, Managing Director of AESL, stated, “AESL remains steadfast in commissioning new lines and meeting strong energy demand growth in its distribution areas. We are proud to contribute to the decarbonisation of power distribution in Mumbai and lead the energy transition in India.”