AESL Breaks Records in Q2 FY25: PAT Up by 172%, Smart Meters Leading the Way
Newzdaddy Business Updates
Synopsis of the Article
- Adani Energy Solutions Limited (AESL) reported strong growth in Q2 FY25.
- Profit After Tax (PAT) increased by 172% year-on-year to Rs 773 crore.
- Excluding a one-time deferred tax reversal adjusted PAT stood at Rs 459 crore, up by 61.6%.
- EBITDA rose by 31% YoY to Rs 1,891 crore.
- Total income surged by 69%, driven by recently commissioned projects and smart metering contributions.
- The company raised Rs 8,373 crore through QIP, the largest in India’s power sector.
- Three new transmission projects were secured, adding 2,059 circuit kilometers to the pipeline.
- Energy demand increased by 7% in Adani Electricity Mumbai (AEML) and by 50% in Mundra Utility (MUL).
- AESL successfully divested the Dahanu thermal plant, marking a milestone in its ESG commitment.
- The company is leading the renewable energy transition, with a 39% renewable power share in Mumbai.
- AESL won several awards, including being named the 2nd most sustainable company in the Energy and Mining Sector by Businessworld.
Adani Energy Solutions Reports Robust Growth in Q2 FY25
In the second quarter of FY25, Adani Energy Solutions Limited (AESL), one of the biggest private electricity transmission and distribution firms in India, demonstrated outstanding performance. The company’s outstanding financial and operational accomplishments can be attributed to its emphasis on growing its transmission network, maintaining operational effectiveness, and setting the standard for renewable energy.
A Strong Financial Performance in Q2 FY25
With a Profit After Tax (PAT) of Rs 773 crore in Q2 FY25, AESL demonstrated a remarkable 172% YoY growth. The company’s PAT was Rs 459 crore after accounting for a one-time deferred tax reversal of Rs 314 crore, which was still a significant gain of 61.6%. Additionally, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased significantly, rising 31% year over year to Rs 1,891 crore.
In Q2 of FY25, AESL’s overall revenue increased 69% year over year to Rs 6,360 crore. Newly installed transmission lines, more energy sales in important areas like Mumbai and Mundra, and the company’s expanding smart metering business were some of the factors that contributed to this expansion.
Raising Funds for Future Growth
Through a Qualified Institutional Placement (QIP), AESL raised Rs 8,373 crore, the most money ever raised in the Indian power industry. Future growth initiatives, such as extending the transmission network and improving energy solutions nationwide, will be fuelled by this funding. With dependable power solutions for consumers and companies alike, AESL is currently in a strong position to maintain its position as a leader in India’s energy industry.
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Expanding Transmission Network and Securing New Projects
The transmission division of AESL performed exceptionally well during the quarter. The company’s under-construction network now has 2,059 circuit kilometers after winning three significant new contracts in Gujarat and Mundra. AESL currently has about Rs 27,300 crore in projects under construction, up from Rs 17,000 crore in the first quarter of FY25.
With a 99.7% average gearbox system availability, AESL is still exhibiting high operational efficiency. In Q2 of FY25, this high availability also generated Rs 35 crore in incentive income.
Growth in Distribution and Smart Metering
With the sale of 2,609 million units, AESL reported a 7% rise in Adani Electricity Mumbai’s (AEML) energy demand. Mundra Utility (MUL) saw a notable uptick as well, with sales rising 50% year over year to 234 million units. The company’s distribution loss for AEML has been steadily increasing and is now 4.85%, demonstrating AESL’s dedication to reducing operating losses and providing consumers with dependable energy.
Additionally, AESL’s smart metering business is expanding. With a contract value of more than Rs 27,195 crore, the business has a pipeline of 22.8 million smart meters spread over nine distinct projects. Smart meter deployment is going smoothly, and in the upcoming years, this business sector is anticipated to significantly contribute to AESL’s total expansion.
Commitment to Sustainability and ESG Goals
A strong dedication to Environmental, Social, and Governance (ESG) activities has been shown by AESL. The firm successfully sold its 500 MW Dahanu thermal power plant under its ESG concept, bringing it one step closer to its objective of lowering carbon emissions and advancing renewable energy. AESL became a trailblazer in India’s energy revolution as its proportion of renewable energy in Mumbai hit an all-time high of 39% by the end of September 2024.
Businessworld recognized AESL’s sustainability achievements by ranking them as the second most sustainable firm in the Energy & Mining category, rising from 45th to 23rd overall. The company’s transparency and dedication to ESG principles are further demonstrated by its 97% score in the World Disclosure Initiative (WDI) study.
Awards and Recognitions
AESL’s commitment to quality was acknowledged on many platforms. At the esteemed Brandon Hall HCM awards in the USA, the company’s leadership development initiative, Adani Marvels, took home the title of “Best Leadership Development Program.” Additionally, the Quality Circle Forum of India (QCFI) held the 10th National Conclave on 5S, where Adani Electricity Mumbai won eight honors in different categories.