Adani Transmission Q3 profit drops 40% but revenue climbs

Adani Transmission Ltd on Thursday said its consolidated net profit for the third quarter fell 40% to Rs 277 crore from Rs 433 crore during the same period last year, when it had recorded some one-time gains.

The sharp decline in profit came even as the Adani Group company posted a 14.5% increase in its consolidated revenue for the period to Rs 2,623 crore from Rs 2,292 crore in the quarter ended December 2020.

The drop in profit meant that Adani Transmission’s earnings per share for the quarter, a key measure of profitability, was also down nearly 40% over the same period last year. 

The company, however, said that the 40% decline in profit was not comparable year-on-year on account of Rs 62 crore reversal of earlier interim power purchase bill, one-time deferred tax assets creation of Rs 129 crore and forex mark-to-market gain of Rs 40 crore in the distribution business during the third quarter of last fiscal year.

The company reported a marginal 2.2% uptick in its cash profit for the third quarter on a year-on-year basis.

Consolidated numbers for the first nine months of the year looked marginally better, with the net profit declining 3.3% on a year-on-year basis and consolidated revenue up 15.8% as compared with the nine-month period last year. 

Other key highlights

1) Operationalized 3,080 circuit km in the first nine months of the year and 41ckm in the third quarter.

2) Nine-month EBITDA of Rs 4,111 crore, up 5.7% year-on-year, and third-quarter EBITDA of Rs 1,325 crore, up 5.8%.

3) Consolidated operational EBITDA at Rs 3,433 crore versus Rs 3,196 crore in the nine-month period, up 7.4%.

4) Transmission operational EBITDA at Rs 2,195 crore, up 14.5%, and distribution operational EBITDA at Rs 1,239 crore.

5) Energy demand improved by 14% on a year-on-year basis for the first nine months and 11% for the third quarter.

Management commentary

Adani Transmission said that the growth in transmission business was driven by newly operational lines. It also said the distribution business revenue growth was better on account of higher energy sales and better collection efficiency. The company said its distribution losses remained low on account of higher collection efficiency. 

“Adani Transmission is constantly evolving and becoming a significant player in the transmission and distribution sector,” said Anil Sardana, MD and CEO.

“ATL’s robust growth pipeline and recently operationalised projects will further strengthen its pan-India presence and consolidate its position as the largest private sector transmission company in India,” he said.