Capitaline

Results 05-May-22

Analysis

Adani Transmission

Sales up 9%, PAT down 8%

Consolidated net sales (including other operating income) of Adani Transmission for the quarter ended Mar 2022 has increased 9.10% to Rs 2974.73 crore. Operating revenue of transmission was up 17% and that of distribution was up 12%. Growth in transmission business was driven by newly commissioned lines. Distribution business revenue growth was better on account of strong energy demand and better collection efficiency. Operating profit margin has jumped from 37.67% to 40.04%, leading to 15.96% rise in operating profit to Rs 1,191.15 crore. Purchase of finished goods cost fell from 16.51% to 14.07%. Employee cost decreased from 8.65% to 6.19%. Other expenses rose from 44.49% to 47.96%. Power and Oil fuel cost rose from 29.30% to 32.27%. Other income rose 27.94% to Rs 190.62 crore. PBIDT rose 17.48% to Rs 1381.77 crore. Provision for interest rose 31.53% to Rs 650.01 crore. PBDT rose 7.30% to Rs 731.76 crore. Provision for depreciation rose 18.49% to Rs 369.53 crore. Profit before tax down 2.13% to Rs 362.23 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 125.23 crore, compared to Rs 113.57 crore. Effective tax rate was 34.57% compared to 30.68%. PAT of Rs 237 crores was lower by 7.6% on account of net forex movement (MTM) of Rs. 82 crore in Distribution business. Minority interest decreased 59.13% to Rs 7.41 crore. Net profit attributable to owners of the company decreased 3.70% to Rs 229.59 crore.

Sales of Transmission segment has gone up 13.77% to Rs 819.40 crore (accounting for 27.55% of total sales). Sales of Trading segment has gone down 7.13% to Rs 418.64 crore (accounting for 14.07% of total sales). Sales of Mumbai GTD BUSINESS segment rose 11.64% to Rs 1,736.69 crore (accounting for 58.38% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 14.86% to Rs 821.62 crore. PBIT of Transmission segment rose 12.75% to Rs 540.80 crore (accounting for 65.82% of total PBIT). PBIT of Trading segment fell 10.53% to Rs 0.51 crore (accounting for 0.06% of total PBIT). PBIT of Mumbai GTD BUSINESS segment rose 19.24% to Rs 280.31 crore (accounting for 34.12% of total PBIT).

PBIT margin of Transmission segment fell from 66.60% to 66.00%. PBIT margin of Trading segment fell from 0.13% to 0.12%. PBIT margin of Mumbai GTD BUSINESS segment rose from 15.11% to 16.14%. Overall PBIT margin rose from 26.23% to 27.62%.

Yearly performance

Consolidated net sales (including other operating income) for fiscal ended Mar 2022, has increased 13.41% to Rs 11257.52 crore. Operating profit margin has declined from 45.67% to 43.43%, leading to 7.84% rise in operating profit to Rs 4,888.64 crore. Purchase of finished goods cost fell from 7.61% to 7.30%. Employee cost decreased from 9.38% to 7.86%. Other expenses rose from 43.21% to 47.47%. Power and Oil fuel cost rose from 29.08% to 34.15%. Other income rose 13.40% to Rs 603.95 crore. PBIDT rose 8.43% to Rs 5492.59 crore. Provision for interest rose 11.71% to Rs 2364.95 crore. PBDT rose 6.07% to Rs 3127.64 crore. Provision for depreciation rose 7.39% to Rs 1427.15 crore. Profit before tax grew 4.97% to Rs 1,700.49 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 464.74 crore, compared to Rs 330.33 crore. Effective tax rate was 27.33% compared to 20.39%. Minority interest decreased 52.48% to Rs 31.14 crore. Net profit attributable to owners of the company decreased 1.59% to Rs 1,204.61 crore.

Sales of Transmission segment has gone up 11.12% to Rs 3,469.33 crore (accounting for 30.82% of total sales). Sales of Trading segment has gone up 8.63% to Rs 821.91 crore (accounting for 7.30% of total sales). Sales of Mumbai GTD BUSINESS segment rose 15.19% to Rs 6,966.28 crore (accounting for 61.88% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.03% to Rs 3,461.49 crore. PBIT of Transmission segment rose 10.81% to Rs 2,428.76 crore (accounting for 70.17% of total PBIT). PBIT of Trading segment fell 8.11% to Rs 0.68 crore (accounting for 0.02% of total PBIT). PBIT of Mumbai GTD BUSINESS segment rose 2.01% to Rs 1,032.05 crore (accounting for 29.82% of total PBIT).

PBIT margin of Transmission segment fell from 70.20% to 70.01%. PBIT margin of Trading segment fell from 0.10% to 0.08%. PBIT margin of Mumbai GTD BUSINESS segment fell from 16.73% to 14.81%. Overall PBIT margin fell from 32.28% to 30.75%.

Operational Highlights FY22

Operationalized 1,104 ckm in FY22 (41.5% higher yoy) and maintained system availability above 99.7%

Energy demand (units sold) improved by 11% yoy in FY22 and 3% yoy in Q4 on account of significant rise in commercial segment and industrial segment demand

Distribution losses remains low in FY22 on account of higher collection efficiency and loss reduction measures

Transmission

Operationalised 1,104 ckm; total transmission network at 18,795 ckm

GTL, BKTL, FBTL projects consisting of ~1670 ckm were fully commissioned Robust Transmission system availability at 99.7%

Received LOI for Karur, Khavda and MP-II Transmission lines

Distribution

Added MPSEZ Utilities Limited (MUL) asset facilitating distribution of electricity in Mundra SEZ area (8,481 hectares) as a distribution licensee

AEML: oMaintained supply reliability at 99.9% (ASAI) oDistribution losses were at 6.55%, improving 127 bps yoy oEnergy demand improved to 7,972 million units up 11% yoy

Consumer-centric initiatives continue with digital payment at 69.7%

Management comment

Anil Sardana, MD & CEO, Adani Transmission said “Adani Transmission is constantly evolving and becoming a significant player in T&D sector. 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 & 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 practicing a culture of safety is integral to its pursuit of enhanced long-term value creation for all stakeholders.”

Other developments

Equity capital stood at Rs 1,099.81 crore as of 31 March 2022 to Rs 1,099.81 crore as of 31 March 2021. Per share face Value remained same at Rs 10.00.

Loan funds rose to Rs 29,901.79 crore as of 31 March 2022 from Rs 27,094.96 crore as of 31 March 2021. Inventories rose to Rs 250.11 crore as of 31 March 2022 from Rs 233.71 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,070.84 crore as of 31 March 2022 compared to Rs 1,013.54 crore as of 31 March 2021. Cash and bank balance rose to Rs 1,492.57 crore as of 31 March 2022 from Rs 1,289.91 crore as of 31 March 2021. Investments rose to Rs 560.52 crore as of 31 March 2022 from Rs 442.03 crore as of 31 March 2021. Fixed assets increased to Rs 34,733.64 crore as of 31 March 2022 from Rs 31,648.86 crore as of 31 March 2021. Intangible assets increased from Rs 592.88 crore to Rs 598.29 crore.

Cash flow from operating activities increased to Rs 4,096.61 crore for year ended March 2022 from Rs 3,784.33 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 4,334.31 crore, compared to Rs 4,515.56 crore during the year ended March 2021.

Promoters’ stake was 74.92% as of 31 March 2022, compared to 74.92% as of 31 March 2021. Promoters pledged stake was 6.74% as of 31 March 2022, compared to 12.02% as of 31 March 2021.

Adani Transmission : Consolidated Results

	Quarter ended			Year ended
Particulars	202203	202103	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	2,974.73	2,726.61	9.10	11,257.52	9,926.33	13.41
OPM (%)	40.04	37.67	237 bps	43.43	45.67	-224 bps
OP	1,191.15	1,027.18	15.96	4,888.64	4,533.17	7.84
Other Inc.	190.62	148.99	27.94	603.95	532.60	13.40
PBIDT	1,381.77	1,176.17	17.48	5,492.59	5,065.77	8.43
Interest	650.01	494.18	31.53	2,364.95	2,116.99	11.71
PBDT	731.76	681.99	7.30	3,127.64	2,948.78	6.07
Depreciation	369.53	311.87	18.49	1427.15	1328.88	7.39
PBT	362.23	370.12	-2.13	1700.49	1619.9	4.97
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	362.23	370.12	-2.13	1700.49	1619.9	4.97
EO Income	0	0	-	0	0	-
PBT after EO	362.23	370.12	-2.13	1700.49	1619.9	4.97
Taxation	125.23	113.57	10.27	464.74	330.33	40.69
PAT	237	256.55	-7.62	1235.75	1289.57	-4.17
Minority Interest (MI)	7.41	18.13	-59.13	31.14	65.53	-52.48
Net profit	229.59	238.42	-3.70	1204.61	1224.04	-1.59
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	229.59	238.42	-3.70	1204.61	1224.04	-1.59
EPS (Rs)*	2.09	2.17	-3.70	10.95	11.13	-1.59

* EPS is on current equity of Rs 1,099.81 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Adani Transmission : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202203	202103	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Transmission	27.55	819.40	720.23	13.77	30.82	3,469.33	3,122.06	11.12
Trading	14.07	418.64	450.76	-7.13	7.30	821.91	756.63	8.63
Mumbai GTD BUSINESS	58.38	1,736.69	1,555.62	11.64	61.88	6,966.28	6,047.64	15.19
Total Reported Sales	100.00	2,974.73	2,726.61	9.10	100.00	11,257.52	9,926.33	13.41
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	2,974.73	2,726.61	9.10	100.00	11,257.52	9,926.33	13.41
PBIT
Transmission	65.82	540.80	479.66	12.75	70.17	2,428.76	2,191.80	10.81
Trading	0.06	0.51	0.57	-10.53	0.02	0.68	0.74	-8.11
Mumbai GTD BUSINESS	34.12	280.31	235.08	19.24	29.82	1,032.05	1,011.75	2.01
Total PBIT	100.00	821.62	715.31	14.86	100.00	3,461.49	3,204.29	8.03
Less : Interest		650.01	494.18	31.53		2,364.95	2,116.99	11.71
Add: Other un-allcoable		190.62	148.99	27.94		603.95	532.60	13.40
PBIT Margin(%)
Transmission		66.00	66.60	-59.87		70.01	70.20	-19.70
Trading		0.12	0.13	-0.46		0.08	0.10	-1.51
Mumbai GTD BUSINESS		16.14	15.11	102.88		14.81	16.73	-191.47
PBT	100.00	362.23	370.12	-2.13	100.00	1,700.49	1,619.90	4.97

Previous News

Adani Transmission Q4 PAT soars 85% YoY to Rs 440 cr
( Hot Pursuit - 30-May-23 09:43 )

Adani Energy Solutions Ltd gains for third straight session
( Hot Pursuit - 29-Nov-23 13:05 )

Adani Energy Solutions Q4 PAT drops 13% YoY to Rs 381 cr
( Hot Pursuit - 02-May-24 13:17 )

Adani Transmission Ltd soars 5%, rises for fifth straight session
( Hot Pursuit - 08-Mar-23 13:00 )

Indices trade with limited gains; Pharma shares advance
( Market Commentary - Mid-Session 02-May-24 14:34 )

Adani Transmission gains on incorporating electricity unit in Aurangabad
( Hot Pursuit - 17-Mar-23 12:00 )

Adani Transmission Ltd Slides 5%, S&P BSE Utilities index Shed 1.57%
( Hot Pursuit - 28-Mar-23 09:45 )

Adani Transmission schedules AGM
( Corporate News - 08-Jul-22 09:35 )

Adani Energy Solutions Ltd Falls 2.81%
( Hot Pursuit - 30-Nov-23 09:30 )

Adani Transmission incorporates subsidiary for power distribution & infra services
( Hot Pursuit - 13-Sep-22 12:55 )

Adani Energy Solutions Ltd up for five straight sessions
( Hot Pursuit - 22-Aug-23 13:01 )