Adani Energy Solution Sees Revenue Grow 46% But Posts Massive Loss In Q1

Adani Energy Solutions posted its earnings for the quarter ended June on Thursday evening.

What Happened: The Adani Group company’s revenue from operations jumped up 46% to ₹5,378 crore from the ₹3,663 crore posted in the same quarter last year. The company however posted a massive loss of around ₹1,190 crore, compared to the ₹181 profit booked in the corresponding quarter of the previous year.

The company attributed the surge in revenue to the contribution from the newly operationalised transmission assets, line addition at under-construction projects and an increase in the units sold because of higher energy consumption in the distribution business in Mumbai and Mundra and the contribution from the smart metering business.

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The massive loss was majorly from a massive one-time exceptional loss of ₹1,506 crore. Adani Electricity Mumbai Limited (AEML), a subsidiary of the Company, is in the process of divesting Dahanu Thermal Power Plant to honour its ESG Commitment. Adjusted profit for the quarter stood at ₹315 crore.

“Within the transmission segment, the company added multiple projects to its pipeline in the recent quarters expanding the order book to Rs 17,000 crore for transmission projects,”, the company said in a press release.

AEML in its board meeting on July 24, 2024, approved the transaction for carving said power plant to one of the related party subject to requisite regulatory approval at the transaction price of ₹815.00 crore against the carrying value in books of ₹2,321.02 crore and hence ₹1,506.02 crore has been charged in the statement of profit and loss as an exceptional item.

Price Action: Adani Energy Solutions’ share price was up 1.35% to close at ₹1,050.15 on Thursday.

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