Adani Energy Solutions reports loss in Q1 on one-time charge

Adani Energy Solutions reported a loss of ₹824 crore in the June quarter on account of an exceptional charge of ₹1,506 crore incurred as part of the process to divest Dahanu thermal power plant.

On July 24, the board approved the proposal to carve out the power plant to a related party at a transaction price of ₹815 crore against the carrying value in the books of ₹2,321 crore.

Adjusted for this one-time charge, the net profit would have been ₹315 crore, up 73 per cent from year ago. Revenue rose 47 per cent to ₹5,379 crore driven by contribution from the newly operationalised transmission assets, line addition at under-construction projects and an increase in the units sold because of higher energy consumption in the distribution business at Mumbai and Mundra and contribution from smart metering business.

The Mumbai distribution business, Adani Electricity Mumbai saw an 8 per cent rise in energy consumed in the quarter.

EBITDA rose close to 30 per cent at ₹1,628 crore with incremental revenue contribution from Warora-Kurnool, Karur, Kharghar-Vikhroli and MP-II lines, recently acquired Mahan Sipat assets and from the distribution business. The transmission business continues to maintain EBITDA margin of 91 per cent.

Transmission biz

Revenue from transmission business was up 33 per cent on year to ₹1,173 crore, that from distribution was 23 per cent higher at ₹3,372 crore while smart metering reported revenue of ₹76 crore.

The transmission business contributed net profit of ₹251 crore, distribution business ₹51 crore and ₹14 crore came from smart meters.

The company added 190 circuit km in the quarter and ended with a total transmission network of 21,187 circuit km. The transmission business has a robust under construction project pipeline worth ₹17,000 crores that are currently under execution. It is on track to commission the MP-II package, NKTL (North Karanpura), Khavda Phase-II, Part-A and the WRSR (Narendra-Pune) lines in the coming quarters. The near-term tendering pipeline for the industry is upwards of ₹90,000 crore, the company said.

The distribution business continues to show a steady performance with double digit revenue growth and expansion of regulatory asset base. Total RAB for the distribution business is at ₹8,371 crore from ₹5,532 crore at the time of acquisition in 2018.

Adani Energy said it was exploring multiple areas and has applied for a parallel distribution licence in Navi Mumbai in Maharashtra, Greater Noida (Gautam Buddha Nagar) in UP, and Mundra subdistrict in Gujarat.

In smart meters it has a under-implementation pipeline at 22.8 million comprising nine projects with a contract value of over ₹27,195 crore.