Adani Transmission Limited Quarterly Results Q2 FY22

Adani Transmission Limited, a part of the Adani Group, reported impressive performance in its second quarter FY22.?

The company reported a strong growth of 35% YoY in its consolidated profits (PAT) to Rs 289 crore (Rs 214 crore same period last year). This is however down from the Rs 433 crore the company reported in the June-ending quarter of FY22.?

Revenue from operations grew 15% YoY to Rs.2479 crores in Q2 FY22.?

The total EBITDA jumped 12.5% YoY from Rs.1146 crores last year to Rs.1289 crores this year. The operational EBITDA, on the other hand, grew 15.8% YoY from Rs.1001 crores to Rs.1159 crores.?

Talking about vertical-wise EBITDA, the transmission operational EBITDA jumped 14.8% YoY to Rs.732 crores with an EBITDA margin of 93%. The distribution operational EBITDA grew 17.5% YoY to Rs.427 crores.

Hits?

• 35% YoY growth in PAT, from Rs.214 crores to Rs.289 crores
• 16% YoY growth in the consolidated revenue, from Rs.2306 crores to Rs 2675 crores
• 15.8% YoY growth in operational EBITDA, from Rs.1001 crores to Rs.1159 crores
• 38.9% YoY growth in the EPS, from Rs.1.37 to Rs.1.90 per share

Misses

• The company suffered a distribution loss of 7.64% in the quarter under review?

Segment-wise performance?

• Transmission vertical – operational EBITDA jumped 14.8% YoY due to increased contribution from new lines and the recently acquired Alipurduar asset
• Distribution vertical – operational EBITDA jumped 17.5% YoY

Adani Transmission in the news

Under its transmissions vertical, Adani Transmission commissioned the BKTL (Bikaner Khetri Transmission) and FBTL (Fatehgarh – Bhadla Transmission) projects during the quarter under review. The company said that it has raised $700 million for its under-construction transmission asset portfolio. The money was raised through agreements with leading international banks.

Adani Transmission also received an LOI for the MP Power Transmission Package – II which it had won in March 2021. It also won the Greentech Energy Conservation Award 2021 for its initiatives taken for energy conservation and the financial benefits of conservation and best practices.

Adani Transmission also added 486 ckm to its operational network during the said quarter. With this addition, its total operational network stands at 18,336 ckm.

Other things to know

• During the quarter, the company maintained a distribution supply reliability at 99.9% (ASAI) and transmission system availability at 99.4%
• The company’s energy demand increased 13.4% YoY with an increase in the demand in the commercial segment. The recorded energy demand was 1975 million units
• The company posted a cash profit of Rs.692 crores in the quarter
• The net debt to EBITDA ratio reduced to 4.5 times against 4.7 times in Q2 FY21
• The stock trades at a PE of 161.56 and has a ROE of 14.05%.

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Research Analyst: Bavadharini KS