Adani Transmission net profit down 60% to ₹59 crore on write-off over finance sunk cost

Our Bureau Mumbai | Updated on May 09, 2020 Published on May 09, 2020


Transmission Limited (ATL) reported a drop in net profit in Q4 due to one-time write-off concerning finance sunk cost.

In the March-ended quarter, ATL’s net profit was Rs 58.97 crore, a 60 per cent drop when compared to Rs 146.7 crore posted in the year-ago period. The one-time write-off was Rs 185 crore, which was categorised as finance sunk cost (non-cash item). Finance sunk cost is a cost that has already incurred but cannot be recovered.

For full fiscal 2019-20, consolidated net profit rose to Rs 706.49 crore, a 26 per cent jump from Rs 559.20 crore posted in 2018-19.

Gautam Adani, Chairman, Adani Group, said, “There is abundant potential for significant growth in India's transmission sector in the coming years. With the government's core focus towards the objective of 24x7 power for all, Adani Transmission Limited with its widespread network and continuous growth looks forward to become world-class electric utility. Through its integrated ESG philosophy focusing on long-term value creation, ATL is striving towards nation building and fueling sustainability and will continue to explore opportunities for growth."

Operating revenues of ATL was Rs 2,220 crore in the Match-ended quarter, down 3 per cent when compared to Rs 2,282 crore shown in the same period last year. The revenue was down due to lower share of distribution business on account of subdued power demand as a result of shutting down of industire due to Covid-19 pandemic. Anil Sardana, MD & CEO, ATL said that the company used its business continuity and disaster management drills during these times in order to provide essential services. “During the lockdown things moved much faster and we got requisite permissions for various kinds of upgradation,” he added.

For the whole fiscal ended March 2020, revenue came in at at Rs. 10,237 crore, up 57 per cent when compared to Rs 6,530 crore posted in fiscal 2019, on the back of strong revenue contribution from seven newly operational Special Purpose Vehicles in transmission and AEML's full year contribution.

Owing to AEML’s reduction in consumption in Q4 FY20 and refinance costs and repayments costs (which the company has said is one-time in nature) incurred, the consolidated EBITDA registered 2 per cent growth and 1 per cent growth was seen in Profit before Tax (PBT).

Transmission segment posted revenues of Rs 683 crore in Q4 March 2020, a 17 per cent rise when compared to the same period last year. Transmission segment's operational EBITDA went up 18 per cent to Rs 618 crore.

However, operational revenue from distribution segment dropped 9 per cent to Rs 1,536 crore in Q4 March 2020 from Rs 1,696 crore in the same period last year. The distribution segment's operational EBITDA fell 22 per cent to Rs 275 crore.

ATL also said that it continues to focus on freeing up its equity, reducing cost of debt and bringing in partners to set global corporate practices. In the 2019-20 fiscal, ATL completed its maiden US Private Placement of $400 million in Feb-Mar 2020. Additionally, Qatar Investment Authority (QIA) has invested in AEML, which completed raising a $1 billion US Dollar bond issuance, first ever by a private integrated utility from India.

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Published on May 09, 2020
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