Adani Transmission Q2 PAT drops 33% YoY to Rs 194 cr

Adani Transmission's (ATL) net profit tumbled 32.67% to Rs 194.47 crore despite of 22.3% jump in revenue from operations to Rs 3032.07 crore in Q2 FY23 over Q2 FY22.

The company said that the profit is not comparable on account of adverse forex movement (MTM) of Rs 138 crore (mark-to-market adjustment on foreign currency loans) from Rs 6 crore gain in the corresponding quarter in the Adani Electricity Mumbai (AEML) business.

Revenue witnessed double-digit growth on account of new transmission lines coming into operation and higher energy demand, the firm stated.

On the segmental front, the operational revenue of the Transmission business was Rs 868 crore (up 10.1% YoY) and the revenue from the Distribution business was Rs 2,164 crore (up 28% YoY).

Transmission business revenue growth was driven by newly commissioned lines over the period. Distribution business revenue increased on account of a significant jump in energy demand.

Total EBITDA rose 5.6% to Rs 1,362 crore in Q2 FY23 from Rs 1,289 crore reported in the same period last year.

Profit before tax in Q2 FY23 stood at Rs 249.95 crore, down by 36.94% from Rs 396.36 crore posted in Q2 FY22.

Adani Transmission operationalized 352 circuit km (CKM) in Q2 FY23 and maintained system availability at 99.76%.

Energy demand (units sold) improved by 13% YoY to 2,233 million units in Q2 FY23, driven by a rise in commercial and industrial segment demand.

Distribution losses remain low at 6% on account of high collection efficiency and loss reduction measures.

Anil Sardana, MD & CEO, Adani Transmission, said, ATL is constantly evolving and is already a significant player in the T&D sector. ATL's growth trajectory remains firm despite the challenging macro environment. Our pipeline of projects and recently operationalised assets will further strengthen our pan-India presence and consolidate our position as the largest private sector transmission and distribution company in India. ATL is consistently benchmarking to be the best-in-class and is pursuing disciplined growth with strategic and operational de-risking, capital conservation, ensuring high credit quality and business excellence with high governance standards. The journey towards a robust ESG framework and practising a culture of safety is integral to our pursuit of enhanced long-term value creation for all our stakeholders.

Adani Transmission's board has approved the issuance of non-convertible debentures (NCDs) for an amount not exceeding Rs 1,500 crore in one or more tranches, subject to all applicable regulatory / statutory approval(s).

Meanwhile, the company's board has also approved the appointment of Bimal Dayal as chief executive officer (CEO) of transmission business and Kandarp Patel as chief executive officer (CEO) of distribution business and key managerial personnel of the company with effect from 2 November 2022.

The company further said that Anil Kumar Sardana, managing director and CEO of the company has relinquished the position of CEO to these two executives and will continue in the capacity as managing director (KMP) of the company with effect from 2 November 2022.

Adani Transmission (ATL) is the transmission and distribution business arm of the Adani Group. ATL is the country's largest private transmission company with a cumulative transmission network of approximately 18,795 ckm, out of which approximately 15,003 ckm is operational and approximately 3,792 ckm is at various stages of construction.

Shares of Adani Transmission declined 0.87% to Rs 3,308.45 on the BSE.

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