In a dynamic landscape where innovation meets sustainability, Adani Energy Solutions Ltd. (AESL) emerges as a transformative force. Formerly known as Adani Transmission Ltd., this energy powerhouse has not only undergone a name change but also a significant evolution in its operations and vision. As per Adani latest updates, AESL is now set to revolutionize India’s energy domain comprehensively, and the numbers and achievements from its recent report for the quarter ended June 30, 2023, speak volumes about its progress.
In this blog, we have explained the financial highlights in QFY24 and AESL’s achievements in a flourishing landscape.
A New Name for a Brighter Future
Recently, Adani Transmission Ltd. transitioned into Adani Energy Solutions Ltd. This transformation represents a strategic shift towards becoming a multifaceted energy solutions provider. AESL is gearing up to leverage opportunities in smart metering, district cooling solutions, and other energy-related services while maintaining its leadership in the transmission and distribution sectors. This rebranding reflects its commitment to shaping the future of India’s energy landscape.
Financial Highlights in Q1FY24
AESL’s financial performance in the first quarter of fiscal year 2024 is really impressive, showcasing its resilience and potential to adapt to changing market conditions. Here is a rundown of financial gains:
1. Consolidated Revenue Growth
AESL reported a 19% increase in consolidated revenue, reaching Rs. 3,622 Crores. This growth is attributed to incremental revenue from newly commissioned lines, partial commissioning of certain elements, and increased energy consumption in the Mumbai Distribution business.
2. Operational EBITDA
The operational EBITDA grew by 3% to Rs. 1,254 Crores, reflecting the company’s effective cost management and operational efficiency.
3. Profitability
AESL’s profit before tax (PBT) witnessed remarkable growth, soaring to Rs. 343 Crores, a substantial 70% higher compared to the previous year. The consolidated profit after tax (PAT) also demonstrated strength, ending 8% higher at Rs. 182 Crores.
4. Cash Profit
Despite the impressive financial performance, the consolidated cash profit during the quarter stood at Rs. 649 Crores, reflecting an 11% decline YoY. This decline can be attributed to a one-time tax impact of Rs. 65 Crores on dividend income from its subsidiary AEML and an additional cash outgo of Rs. 20 Crores for hedging costs during the transition from option contracts to CCS (Cross Currency Swap).
Here is a segment-wise highlights:
AESL’s operations encompass various segments, each contributing to its holistic growth story.
- Transmission Business
Operational Excellence: AESL achieved an impressive transmission system availability of 99.77%, ensuring reliability and consistency in its services.
- Network Expansion
The company added 550 circuit kilometers (ckms) to its operational network, bringing the total network to an expansive 19,778 ckms.
- Demand Surge
Energy demand, represented by units sold, surged by 7.6% YoY, reaching 2,754 million units.
- Distribution Losses
The distribution losses were impressively low at 4.85%, driven by factors like seasonality.
- Digital Adoption
AEML witnessed an increase in e-payment adoption, with e-payment as a percentage of total collection rising to 78.5% in Q1FY24, compared to 74.7% the previous year.
Pioneering Achievements and Awards
AESL’s relentless pursuit of excellence and commitment to sustainability has earned it recognition and accolades:
- As per Adani latest updates, the company was honored with the ‘Emerging Company of the Year Award – 2022’ at the ET Awards on Corporate Excellence, recognizing its remarkable growth, scale, and sustainable business practices.
- According to the Ministry of Power’s 11th Annual Integrated Rating and Ranking for Power Distribution, AESL’s subsidiary AEML is not just Mumbai’s primary power utility but also India’s No. 1 power utility.
- AESL was conferred with the prestigious Golden Peacock Award in Environment Management (GPEMA), reaffirming its dedication to sustainable practices.
- The company secured five ‘Par-Excellence Awards’ at the 9th National Conclave on 5S, organized by the esteemed Quality Circle Forum of India HQ (QCFI), showcasing its unwavering commitment to business excellence.
- AESL’s consistent prioritization of sustainable practices earned it a place among the Top 50 of India’s Most Sustainable Companies in the annual ranking by BW Business World, where it was featured in the top 3 most sustainable companies.
- The company’s commitment to sustainability is further underscored by certifications such as Single-use Plastic Free, Zero Waste to Landfill (ZWL), and being Net Water Positive, awarded by independent agencies like DNV, Intertek, and CII.
- Recognized for excellence in financial reporting, AESL received the ICAI Awards for Excellence in Financial Reporting for the year 2021-22 in the Infrastructure and Construction Sector Category (turnover above Rs. 500 Crores).
Summing Up
As Adani Energy Solutions Ltd. continues to evolve and set new benchmarks in the energy sector, it is evident that this transformative force is on the path to creating a brighter and more sustainable future. Different segments of Adani’s businesses have been awarded with prestigious accolades. This fuels energy to accelerate business operations and implement an innovative approach to nation development.
