- Adani Transmission said on Monday that its third-quarter consolidated net profit rose 78% from last year on the back of a one-off income of ₹240 crore as a result of a regulatory order.
- Revenue rose 22% to ₹3,552 crore, enabled by new transmission lines and an increase in power demand.
- The Adani Group company said two new transmission lines in Gujarat namely Jam Khambaliya and Western Region Strengthening Scheme contributed to revenue growth during the quarter.
Adani Transmission on Monday reported a 78% year-over-year increase in its third-quarter consolidated net profit. The company’s net profit was supported by a one-off income of ₹240 crore as a result of a regulatory order.
Excluding the one-off gain, net profit was 12% lower than last year. Revenue rose 22% to ₹3,552 crore, enabled by new transmission lines and an increase in power demand.
Adani Transmission said that two new transmission lines in Gujarat namely Jam Khambaliya and Western Region Strengthening Scheme contributed to the revenue growth in the transmission segment during the quarter. Adani Transmission has obtained a 35-year lease for both projects.
“Our pipeline of projects and recently operationalized assets will further strengthen our presence across India and consolidate our position as the largest private sector transmission and distribution company in India,” said Anil Sardana, Managing Director of Adani Transmission.
Shares of Adani Transmission continued to fall, falling 10% on Monday. Since US-based shortseller Hindenburg released a report on January 24 accusing the Adani group of stock manipulation and accounting fraud, the company’s shares have fallen more than 54%.
Adani Transmission’s Q3 in Numbers:
| Particularities | Q3 FY23 | 2nd quarter FY23 | Q3 FY22 |
| Gain | ₹3,552 crore | ₹3,251 crore | ₹2,912 crore |
| Net profit | ₹475 crore | ₹206 crore | ₹267 crore |
| Net margin | 13.4% | 6.3% | 9.2% |
Source: company reports
The company reported higher efficiency even as power demand increased 4.4% during the quarter – distribution loss fell to 5.6% in Q3 from 6.53% a year ago, while average availability rose to 99, 75% in Q3 from 99.69% a year ago.
However, the transmission network in use fell 9.7% year-on-year during the quarter to 371 cubic kilometers.
Increase in coal price passed on to customers
Coal and power purchase costs account for the bulk of Adani Transmission’s costs – while coal prices rose 1% year-on-year in the quarter, power purchase costs rose 18%.
The company said it has partially recovered these increases from customers. “The impact of increases in coal prices and power purchase costs in recent periods has been partially offset by the recovery of fuel adjustment costs (FAC) in monthly billing,” it said in the exchange filing.
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