Adani Transmission reports net profit of Rs 230 cr in Q2

Our Bureau Mumbai | Updated on November 07, 2019 Published on November 07, 2019

Adani Transmission has reported a net profit of Rs 230 crore, a 156 per cent increase when compared to Rs 89.50 crore it posted in the year-ago period. After eliminating one-time interest income and revenue reversal, net of tax, of Rs 37 crore for the September-ended quarter, profit was up 82 per cent.

This rise was due to a combination of new transmission networks that have become fully operational and new orders. In the financial year 2019, Adani Transmission had seven transmission assets which became operational in this financial year and so far have contributed Rs 300 crore in revenue.

Revenues for the company also came in strong at Rs 2,638 crore, an 80 per cent when compared to Rs 1,300 crore it posted in the same period last year.

Gautam Adani, Chairman, Adani Group, in a statement said: “The Indian power sector is currently going through tremendous transformation. We have always strived to be a significant contributor toward nation building and we will continue to explore opportunities for growth by leveraging our strong transmission network."

Anil Sardana, MD & CEO, Adani Transmission Limited, added that the company's focus in this financial year has been to expand the grid network and investing in technological advancements that will supply power to deficit parts of the country.

Further, its transmission business EBITDA was Rs. 623 crore up 23 per cent and margins came in at 92 per cent when compared to the year-ago period. In the distribution business, operational EBITDA was Rs 459 crore, up 190 per cent.

In the first half of this financial year, Adani Transmission received a letter of intent to build, own, operate and maintain the transmission project in Gujarat through tariff based competitive bidding process. The Lakadia Banaskantha Transco Limited project is c.360 circuit (ckt) kilometres at voltage level of 765 KV at Lakadia and Banaskantha substations in Gujarat. It will also build, own, operate and maintain another transmission project in Gujarat, i.e. Jam Khambaliya Transco Limited, which is kilometres of 400 kV D/C line along with 400 kV substation in Gujarat. The full year tariffs from both these projects is estimated to be Rs 144 crore.

The Board of Directors of Adani Transmission have approved issuance of US Dollar denominated foreign currency bonds up to $500 million.

In a statement to the exchanges, Adani said that these Dollar-denominated foreign currency bonds will be issued on a private placement basis in one or more tranches abroad. It may also look at listing it in any of the stock exchanges in India or overseas. The proceeds of the bonds will be used for refinancing purposes. Further, the Board also approved buyback of existing non-convertible debentures (NCDs) and Masala Bonds of Rs.2,290 crore in one or more tranches.

Also, as on September-ended quarter, cash and cash equivalents of Adani Transmission shot up in the last 6 months to Rs 1,174 crore from Rs 314 crore in the same period last year.

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Published on November 07, 2019
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