Adani Energy Solutions Reports Strong Growth in Q2 FY25

Mumbai: ani Energy Solutions Limited (“AESL”), part of globally diversified ani portfolio and largest private transmission and distribution company in India with a growing smart metering portfolio, today announced its financial and operational performance for quarter and half year ended September 30, 2024.

“We are pleased to have delivered anor quarter with robust operating and financial performance. company remains focused on timely project commissioning as well as achieving operating efficiencies. power demand trends in both utilities and new transmission project wins are very encouraging and we are making progress with installation of smart meters in all our contracts. Our credible steps of successfully divesting Dahanu rmal plant in line with our commitment and achieving an all-time high share of 39% renewable power penetration in Mumbai strengns our position as true energy transition leer in India. We are also pleased to share that prestigious business magazine Businessworld has recognized AESL as one of India’s Most Sustainable Companies with a 2nd position in Energy and Mining Sector and 23rd in overall list. This demonstrates our unwavering dedication to reduce our carbon footprint and promote sustainable business practices,” said Kandarp Patel, CEO, ani Energy Solutions.

Income: Total income witnessed robust growth of 69% on account of contribution of newly operationalized transmission assets (KVTL, KBTL, WKTL lines), partial completion of lines at under-construction projects (MP-II) and an increase in energy sales because of strong demand growth in distribution business at Mumbai and Mundra and growing contribution from smart metering business

• Strong transmission system availability of 99.7% at portfolio level
• AEML, Mumbai distribution business, witnessed an increase in energy consumed by 7%. Its distribution losses of 4.85% remain low and utility ded new consumers, reaching 3.17 million on back of reliable and affordable power supply
   

EBITDA:

• EBITDA increased by 31% to Rs 1,891 crore for quarter translating from strong revenue growth across all segments, EPC income in transmission, treasury income and steily regulated EBITDA from Distribution business
• operational EBITDA of Rs 1,626 crore in Q2 ended 19% higher. transmission business continues to maintain industry’s leing operating EBITDA margin of 92%

PAT: PAT of Rs 773 crore in Q2FY25 was 172% higher YoY, translating from a strong EBITDA growth and boosted by deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore

Transmission business:

• On operational parameters, it was a strong quarter, with an average system availability of over 99.7%. Robust line availability resulted in an incentive income of Rs 35 crore in Q2FY25
• During quarter, company won three new transmission projects with a project cost of ~Rs. 10,300 crore - NES in Jamnagar Gujarat , NES in Navinal (Mundra), Khavda Phase IVA ding 2,059 ckm to under construction network
• ded 140 circuit kilometers during quarter and ended with a total transmission network of 23,269 circuit kilometers

Distribution business (AEML Mumbai and MUL Mundra):

• Sold 2,609 million units in AEML vs. 2,446 million units YoY on account of an uptick in energy demand
• distribution loss at AEML has been improving consistently and stands at 4.85% in Q2FY25. Maintained supply reliability at over 99.9%
• units sold in MUL (Mundra) utility was 234 MUs in Q2FY25 as against 156 MUs on back of strong industrial demand

Segment-wise Progress and Outlook:

Transmission:

• Robust under construction project pipeline of 12 projects worth ~Rs 27,300 crores are currently under execution phase
• We expect to fully commission MP-II package, Sangod, NKTL (North Karanpura), Khavda Phase-II, Part-A and WRSR (Narendra-Pune) lines in current fiscal year
• near-term tendering pipeline for industry is solid and upwards of Rs 59,000 crore

Distribution:

distribution business continues to show a stey performance with double digit revenue growth and expansion of RAB (regulatory asset base). Total RAB for AEML business, including GTD divisions, stands at Rs 8,405 crores as of 1HFY25

Smart Meters:

• new business segment is evolving well and will become sizeable in terms of contribution to AESL’s overall growth and profitability. It will offer massive synergies to distribution business
• Project set-up and meter deployment is progressing well across all regions
• under-implementation pipeline stands at 22.8 million smart meters, comprising nine projects with a contract value of over Rs 27,195 crore
   

ESG Updates:

• AESL concluded divestment of 500 MW of ani Dahanu rmal Power Station in line with its ESG philosophy. This landmark step places AESL closer to its aspiration to be amongst top 20 global companies in ESG ratings amongst global utility industry
• ani Electricity Mumbai successfully increased its renewable energy share in overall electricity mix to an all-time high of 39% at end of September 2024
• Scored 97% in World Disclosure Initiative (WDI) survey, by Thomson Reuters Foundation well above energy sector and country averages of 76% and 60% respectively
• Awarded one of India’s Most Sustainable Companies by Business World in 2024. Company has secured 2nd position in Energy and Mining Sector and ranked 23rd in overall list, up from 45th position in 2023
• ani Electricity and ani Foundation, through ir CSR initiative ‘Swabhimaan Project,’ has empowered over 4,000 underprivileged women, providing m with skill development training and opportunities to earn a sustainable livelihood

AESL, part of ani portfolio, is a multidimensional organization with presence in various facets of energy domain, namely power transmission, distribution, smart metering, and cooling solutions. AESL is country’s largest private transmission company, with a presence across 16 states of India and a cumulative transmission network of 23,269 ckm and 70,686 MVA transformation capacity. In its distribution business, AESL serves more than 12 million consumers in metropolitan Mumbai and industrial hub of Mundra SEZ. AESL is ramping up its smart metering business and is on course to become India’s leing smart metering integrator with an order book of over 22.8 million meters. AESL, with its integrated offering through expansion of its distribution network through parallel licenses and competitive and tailored retail solutions, including a significant share of green power, is revolutionizing way energy is delivered to end consumer. AESL is a catalyst for transforming energy landscape in most reliable, affordable, and sustainable way.