Adani Transmission to supply 60% power to Mumbai from green sources in next 4 yrs

Adani Electricity Mumbai Limited (AEML), a subsidiary of Adani Transmission on Wednesday said the company plans to provide 60% of its electricity from renewable energy sources by 2027. In a regulatory filing, the company said scaling renewable energy supply is part of the company’s strategy to provide reliable, affordable, and sustainable electricity to consumers.

"AEML consumers will have the proud distinction to be amongst the few globally to source a significant share of electricity from Renewable Energy Sources (60% by 2027)," the company said in a statement.

Following the development, the shares of Adani Transmission on Thursday declined by 2.6% to hit an intra-day low of ₹1,015.20 apiece on the Bombay Stock Exchange. During the session, the share price of Adani Transmission opened lower at ₹1,037 as against the closing price of the previous session of ₹1,042.75. On Thursday, the company’s market capitalisation stood at ₹1,15,341 crore as 44,242 shares exchanged hands on the BSE against the two-week average of 1.58 lakh shares. The company hit a 52-week high of ₹4,238.55 on September 16 last year, whereas it hit a 52-week high of ₹630 on March 1 this year.

According to the company, Adani Electricity Mumbai Ltd will receive an amount of ₹1,574 crore (₹1,496 crore as principal and carrying cost) towards the approved past period revenue gap during the next two years along with carrying cost.

The company said in the last two years, the share of renewable energy procurement increased from 3% to 30%. The capital expenditure of Adani Electricity Mumbai Limited stood at ₹1,310 crore for FY23, which has been fully funded through internal accruals without any debt incurrence. As of March 31, 2023, Adani Electricity Mumbai Limited has a cash surplus of about ₹800 crore. 

The working capital loan of Adani Electricity Mumbai Limited has been reduced to ₹500 crore as of March 31, 2023, from ₹1,045 crore in December 2022, according to the company’s regulatory filing. The company’s regulatory asset base increased from ₹5,607 crore in FY19 to ₹7,49 crore in FY22, with a CAGR of 10.10%.

For the December quarter of FY23, Adani Transmission reported a consolidated net profit of ₹478 crore, up 73% year-on-year, aided by a one-time income of ₹240 crore from a regulatory order. The company’s revenue rose 16% year-over-year to ₹3,037 crore for the third quarter, compared with ₹2,623 crore in the corresponding period a year ago. The company’s consolidated operational EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased to ₹1,318 crore in the third quarter.

According to the rating agency Moody's, Adani Transmission's investment-grade credit profile reflects the predictable cash flow from its portfolio of high-quality transmission and distribution (T&D) assets in India (Baa3 stable), most of which are regulated.