Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Q3 FY24 Earnings Presentation
50 slides from Adani Energy Solutions's earnings presentation, Jan 30, 2024
Slide 1: Cover letter to BSE and NSE on results submission
29th January, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange plaza, Dalal Street, Bandra-Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai – 400051 Scrip Code: 539254 Scrip Code: ADANIENSOL Dear Sir, Sub: Submission of Media Release and Investors’ Presentation on Unau
Slide 2: Annexure A: Media Release
Annexure A Media Release Adani Energy Solutions continues robust growth Revenue at Rs 3,615 crore, up 19% YoY Operational EBITDA at Rs 1,454 crore, up 10% YoY Q3 Comparable PAT at Rs 281 crore, grew by 1% During the quarter, the company posted robust Cash Profit of Rs 786 crore Editor’s Synopsis • R
Slide 3: Q3 FY24 Highlights: Consolidated Financial Performance
Q3 FY24 Highlights: Consolidated Financial Performance (Rs crore) Particulars Q3 FY24 Q3 FY23 YoY % 9M FY24 9M FY23 YoY% Revenue 3,615 3,037 19.0% 10,657 9,117 16.9% Total EBITDA 1,732 1,708 1.4% 4,553 4,395 3.6% Operating EBITDA 1,454 1,318 10.4% 4,077 3,772 8.1% Net Profit 348^ 478# -27.2% 815^ 84
Slide 4: Segment-wise Key Operational Highlights
Segment-wise Key Operational Highlights: Particulars Q3 FY24 Q3 FY23 Change Transmission business Average Availability (%) 99.7% 99.7% In line Transmission Network Added (ckm) 302 371 In line Total Transmission Network (ckm) 20,422 18,795 Higher Distribution business (AEML) Supply reliability (%) 99
Slide 5: Smart Meters and ESG Updates
Smart Meters: • The new business segment is evolving well and will become sizeable in terms of contribution to AESL’s overall growth and profitability. It offers strong synergies to the distribution business. • During the quarter, AESL received LOA (letter of award) for Phase-2 smart metering contra
Slide 6: About Adani Energy Solutions Limited (AESL)
About Adani Energy Solutions Limited (AESL): AESL, part of the Adani portfolio, is a multidimensional organization with presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. AESL is the country’s largest private transmission
Slide 7: Annexure B: Q3 FY24 Results Presentation
Annexure B Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Q3 FY24 Results Presentation January 2024
Slide 8: Contents
CONTENTS 04-07 Adani Portfolio 04 09-10 Executive Summary – Q3 FY24 09 Financial Highlights – Q3 FY24 12-20 and 9M FY24 12 22 Debt Profile 22 24-26 Operational Highlights – Q3 FY24 24 ESG Framework 28 28-34 36 36 Recent Awards and Recognition Annexure – Rating and AESL’s 38 38-42 Asset Portfolio
Slide 9: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 10: Adani: A World Class Infrastructure & Utility Portfolio
Adani: A World Class Infrastructure & Utility Portfolio Infrastructure and Utility Primary Industry Flagship Emerging B2C Core Portfolio Materials, Metal & Incubator Energy & Utility Transport & Logistics Direct to Consumer Mining (56.4%) (63.2%) (72.6%) (73.2%) (65.9%) (100%) AGEL AESL APSEZ Cement
Slide 11: Adani Portfolio: Decades long track record of industry best growth
Adani Portfolio: Decades long track record of industry best growth with national footprint Secular growth with world leading efficiency National footprint with deep coverage Growth 3x 6 Growth 4x 6 s EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x 6 APSEZ Growth 1.4x 6 AGEL Adani’s Core Infra. Platform
Slide 12: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Centre of Excellence Project Management & Assurance Group AIMSL* Policy - Strategy - Risk Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisi
Slide 13: AESL: A platform well-positioned to leverage growth opportunities
AESL: A platform well-positioned to leverage growth opportunities in energy domain RAB expansion through Execution Prowess Strategic Presence Asset Hardening in Discoms Transmission Network of Transmission - Presence in 15 states 8% CAGR growth in RAB in Mumbai Development 20,422 ckm(1) Distribution
Slide 14: AESL - Executive Summary and Key Focus Areas
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission AESL - Executive Summary and Key Focus Areas 14
Slide 15: Executive Summary – Q3 FY24
AESL: Executive Summary – Q3 FY24 Operational Update: Other Key Updates: Transmission business: – Added 302 ckm to operational network during the quarter, with total network at 20,422 ckm – AESL won the Global Sustainability Leadership Award 2023 from the World Sustainability Congress for outstandin
Slide 16: Key Focus Areas – FY24 and Beyond
AESL: Key Focus Areas – FY24 and Beyond Financial Summary – Q3 FY24 Locked-in Growth and Outlook AESL well placed to capture future growth through multiple avenues: • Achieved double digits revenue growth of 19% • Robust under-construction pipeline of Rs. 170 bn in Transmission and Rs 251 bn in • Co
Slide 17: Q3 FY24 Financial Highlights (YoY)
Revenue Op EBITDA Comparable PAT Rs. 3,615 Cr Rs. 1,454 Cr Rs. 281 Cr 19% up YoY 10% up YoY 1% up YoY Q3 FY24 Financial Highlights (YoY) 11
Slide 18: Consolidated Financial Highlights Q3FY24 YoY
AESL: Consolidated Financial Highlights Q3FY24 YoY (In Rs Cr) Operational Revenue EBITDA PAT 3615 1732 478# 1708 3037 348^ Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Comparable PAT Cash Profit (ex one-time) 786 280 281 757 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Note: #Q3FY23 Consolidated PAT of Rs 478 Cr Includ
Slide 19: Segment-wise Financial Highlights Q3FY24 YoY
AESL: Segment–wise Financial Highlights Q3FY24 YoY (In Rs Cr) Operational Revenue EBITDA PAT 2559 461# 1163 2104 1055 246 677 1056 545 933 102^ 18 Transmission Distribution Transmission Distribution Transmission Distribution Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Comparable PAT Cash Profit (ex on
Slide 20: Transmission Utility - Revenue and Operating EBITDA Bridge Q3FY24
AESL: Transmission Utility - Revenue and Operating EBITDA Bridge Q3FY24 YoY (In Rs Cr) Revenue (excluding incentive) up 13% supported by Operating EBITDA up 13% driven by strong revenue revenue contribution from new line elements 135 119 (54) 4 ( 14 ) 38 1,029 967 909 859 Q3 FY24 Newly operational A
Slide 21: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q3FY24
AESL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q3FY24 YoY (In Rs Cr) Revenue up 22% driven by higher energy demand Operating EBITDA ended 6% higher 372 18 ( 289 ) 450 45 35 7 (5) ( 123 ) 2,559 ( 29 ) 2,104 487 459 Q3 FY24 Sale of Energy Sale of Wheeling Transmission Other Q3 FY2
Slide 22: 9MFY24 Financial Highlights (YoY)
Revenue Op EBITDA Comparable PAT Rs. 10,657 Cr Rs. 4,077 Cr Rs. 812 Cr 17% up YoY 8% up YoY 26% up YoY 9MFY24 Financial Highlights (YoY) 16
Slide 23: Consolidated Financial Highlights 9MFY24 YoY
AESL: Consolidated Financial Highlights 9MFY24 YoY (In Rs Cr) Operational Revenue EBITDA PAT 4553 10657 841# 4395 815^ 9117 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Comparable PAT Cash Profit (ex one-time) 812 1% 2257 2235 642 9MFY23 9MFY24 9MFY23 9MFY24 Note: #9MFY23 Consolidated Comparable PAT of
Slide 24: Segment-wise Financial Highlights 9MFY24 YoY
AESL: Segment–wise Financial Highlights 9MFY24 YoY (In Rs Cr) Operational Revenue EBITDA PAT 7777 2807 2824 933# 6480 668 1729 1588 2637 2881 147 -93 Transmission Distribution Transmission Distribution Transmission Distribution 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Comparable PAT Cash Profit (ex
Slide 25: Transmission Utility - Revenue and Operating EBITDA Bridge 9MFY24
AESL: Transmission Utility - Revenue and Operating EBITDA Bridge 9MFY24 YoY (In Rs Cr) Revenue (excluding incentive) up 9% supported by Operating EBITDA up 9% driven by strong revenue revenue contribution from new line elements 234 290 10 ( 27 ) (106) 50 2,628 2,802 2,412 2,568 9M FY24 Newly operati
Slide 26: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge 9MFY24
AESL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge 9MFY24 YoY (In Rs Cr) Revenue up 20% driven by higher energy demand Operating EBITDA ended 6% higher 1,297 54 (1,183 ) 1,047 156 121 (23) (4) 7,777 (71) (10 ) 6,480 1,448 1,360 9M FY24 Sale of energy Wheeling Sale of Other Transmiss
Slide 27: 1HFY24 – Debt Profile
1HFY24 – Debt Profile 21
Slide 28: Capital Management Program elongates debt maturity and improves credit quality
AESL’s Capital Management Program elongates debt maturity and significantly improves credit quality Refinancing risk minimized1- above 5 year maturity increased from 12% to 74% As of As of 31 March 16 30 Sept 23 12% (year of inception) < 1 Y - 19% < 1 Y - 6% 1 to 5 Y - 69% 1 to 5 Y - 20% Consolidate
Slide 29: Q3 FY24 Operational Highlights (YoY)
▪ Average Transmission System Availability 99.67% ▪ Transmission Network at 20,422 ckm added 302 ckm ▪ Supply Reliability (ASAI) in AEML is above 99.99% ▪ Distribution Loss in AEML further improved to 5.46% Q3 FY24 Operational Highlights (YoY) 23
Slide 30: Transmission Utility – Key Operating Metrics Q3FY24
AESL: Transmission Utility – Key Operating Metrics Q3FY24 (YoY) Transmission Network Length(2) (ckm) Power Transformation Capacity(2) (MVA) 20,422 54,661 18,795 40,001 Added 302 ckm to the Continuous expansion operational network in in transformation Q3 with total network capacity on account of at 2
Slide 31: Distribution Utility (AEML) – Key Operating Metrics Q3FY24
AESL: Distribution Utility (AEML) – Key Operating Metrics Q3FY24 (YoY) Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) SAIFI SAIDI CAIDI SAIFI SAIDI CAIDI 99.997% 99.997% 27.23 25.77 Reliability Maintained supply parameters like SAIDI reliability of more and SAIFI remain
Slide 32: Distribution Utility (AEML) – Key Operating Metrics Q3FY24
AESL: Distribution Utility (AEML) – Key Operating Metrics Q3FY24 (YoY) Consumer base (million) Distribution Loss (%)(1) E-payment (% of total collection) 3.16 3.10 5.60% 80.36% 5.46% Increase in Distribution loss E-payments share 74.87% consumer base improving increasing with reflecting AEML consist
Slide 33: AESL - ESG Framework
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission AESL is now certified Won the prestigious Continue to maintain Single Use Plastic (SUP) Free AESL won “Global Best-in-class ESG ratings Sustainability Leadership Net Water Positive From global rating agencies: Award 202
Slide 34: ESG Framework
AESL: ESG Framework United Nations GHG Protocol SBTi Global Compact Guiding Integrated Reporting Policies Guiding Principles and TCFD framework CDP disclosure principle Disclosure Standards UN Sustainable TNFD GRI Standards Development Goals Policy Structure Focus Areas ESG UNSDG aligned: • Environm
Slide 35: Environment: Key Environmental Indicators and Milestones
AESL: Key Environmental Indicators and Milestones Key Performance Indicators Current Status Baseline Medium to Long-term Targets Energy Mix & Emission Intensity AEML has achieved 35% renewable in power mix as of 30% by 2023 - RE share in power procurement 3% FY19 60% by FY27 December 2023 (achieved
Slide 36: Social Philosophy and Focus Areas
AESL: Social Philosophy and Focus Areas Our social Initiatives are mapped to UNSDG 2030 • Physical infrastructure and e-learning platform in rural areas Access to Education • Educational Kits (2830 students benefited) & School Uniforms Tiroda, Dahanu and to Anganwadi children (5780 students benefite
Slide 37: Social: Key Social Indicators and Milestones
AESL: Key Social Indicators and Milestones Target Material Categories Material Themes Key Performance Indicators Baseline (FY23-24) Zero Rate of fatalities per million hours worked Zero (FY 20-21) Work related injury Rate of recordable work-related injuries per million man-hours 0.33 Zero worked (FY
Slide 38: Governance Philosophy and Focus Areas
AESL: Governance Philosophy and Focus Areas Policies Committees Assurance • Environment Policy covered in BR Policy • Water Policy • Corporate Responsibility Committee • Bio-diversity Policy • Risk Management Committee Corporate Governance • Due –diligence for CoC, HR, ESG etc Responsibility Committ
Slide 39: Governance: Key Indicators and Milestones
AESL: Key Governance Indicators and Milestones Material Categories Material Themes Key Performance Indicators Baseline Actions Taken and Goals 16.6% - women Board Gender Balance the board composition in terms of men • % of women directors in board improved to Board Gender Diversity directors in boar
Slide 40: Enhanced Safety Culture
AESL: Enhanced Safety Culture Safety Initiatives During Q3FY24 Safety Performance in Q3FY24 • Safety training: 47,683 man-hours of safety training and awareness during Q3 FY24 Transmission Distribution (AEML) • Positive Safety Culture: Safety Parameters Q3FY24 Q3FY23 Q3FY24 Q3FY23 o Monthly Safety Q
Slide 41: Recent Award and Achievements
Recent Award and Achievements 35
Slide 42: Recent Awards & Achievements
AESL: Recent Awards & Achievements Received “Excellence in Procurement Adani Energy Solutions has won the Innovation” & “Outstanding Leader in AEML awarded “Excellence in Road Safety” prestigious Golden Peacock Award in Procurement” award at 8th ISM-India and “Excellence in Innovation in Safety Envi
Slide 43: Annexure – Rating and Operational and Under-construction Asset Portfolio
Adani Energy Solutions Limited Debt Presentation | February 2 0 2 0 Transmission Annexure– Rating and Operational and Under-construction Asset Portfolio 14
Slide 44: AESL and AEML Credit Ratings
AESL and AEML Credit Ratings International – ATSOL Obligor Group (Transmission business) (Reg S/ 144A) SPV Ratings - Domestic Rating Agency Facility Rating/Outlook Company Rating Agency Rating Outlook Fitch Dollar Bond BBB-/Stable AESL India Ratings AA+ Negative AESL ICRA A1+ - Moody’s Dollar Bond B
Slide 45: AESL's Operational Asset Portfolio as of Dec 2023 (1/2)
AESL’s Operational Asset Portfolio as of Dec 2023 (1/2) Adani Energy Solutions Limited 100% 100% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% ATSCL & WTGL, PPP Bikaner ATIL MEGPTCL AEML MUL ATBSPL ATRL RRWTL CWRTL FBTL GTL APTL STL Khetri Discom Discom MTSCL WTPL 8/9/10 Mundr
Slide 46: AESL's Operational Asset Portfolio as of Dec 2023 (2/2)
AESL’s Operational Asset Portfolio as of Dec 2023 (2/2) Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% Obra-C Lakadia WRSS – XXI Jam Karur Kharghar Khambaliya WKTL Transmission - Vikhroli Badaun Banaskantha (A) Obra Lakadia Lakadia - Jam Warora Karur Kharghar Banaskantha Bhuj Kham
Slide 47: Transmission Under-construction Asset Portfolio as of Dec 2023
AESL‘s Transmission Under-construction Asset Portfolio as of Dec 2023 Adani Energy Solutions Limited Since AESL’s evolution its Transmission Network 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% (ckms) has grown 3.5x and expanded into Distribution MP AEMIL Khavda- Khavda – businesses NKTL WR-SR
Slide 48: Smart Metering Under-construction Portfolio as of Dec 2023
AESL‘s Smart Metering Under-construction Portfolio as of Dec 2023 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% APEPDCL – APCPDCL – APSPDCL – MSEDCL MSEDCL BEST APDCL NBPDCL UPCL Phase 1 & 2 Phase 1 & 2 Phase 1 & 2 NSC-05 NSC-06 BEST Smart NE Smart Adani Adani Adani Ada
Slide 49: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Energy Solutions Limited (together with its subsidiaries, the “Company” or “AESL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given sole
Slide 50: Thank You
MUSHKILON K\ adani , NAHI SUNTE, HUM KARKE DIKHATE HAIN. #HumKarkeDikhateHain — adani Energy Solutions Thank You
Adani Energy Solutions — Q3 FY24 Earnings Presentation on 6ix