Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Q2 FY24 Earnings Presentation
44 slides from Adani Energy Solutions's earnings presentation, November 2023
Slide 1: Adani Energy Solutions Limited Q2 FY24 Results Presentation
Adani Energy Solutions Limited (Formerly known as Adani Transmission Limited) Q2 FY24 Results Presentation November 2023
Slide 2: Contents
CONTENTS 04-07 Adani Portfolio 04 09-10 Executive Summary – Q2 FY24 09 Financial Highlights – Q2 FY24 12-20 and 1HFY24 12 22 Debt Profile 22 24-26 Operational Highlights – Q2 FY24 24 ESG Framework 28 28-34 36 36 Recent Awards and Recognition Annexure – Rating and AESL’s 38 38-42 Asset Portfolio
Slide 3: Adani Portfolio
adani Energy Solutions Adani Portfolio
Slide 4: 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 (56.3%) (63.2%) (72.6%) (73.2%) (65.5%) (100%) AGEL AESL APSEZ Cement
Slide 5: 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 EBITDA 70% 1,2 EBITDA 92% 1,4 AEL Growth 3x 6 Growth 1.4x 6 APSEZ Adani’s Core Infra. Platform – 320 M
Slide 6: 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 7: AESL: A platform well-positioned to leverage growth opportunities in energy domain
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 14 states 8% CAGR growth in RAB in Mumbai Development 19,862 ckm(1) Distribution
Slide 8: 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 9: Executive Summary – Q2 FY24
AESL: Executive Summary – Q2 FY24 Operational Update: Other Key Updates: – Added 219 ckms to operational network during the quarter with total network at 19,862 ckms – “Platinum Award” for Occupational Health and Safety under – During the quarter, operationalized WKTL & KTL and charged KVTL line. Re
Slide 10: Key Focus Areas – FY24 and Beyond
AESL: Key Focus Areas – FY24 and Beyond Financial Summary – Q2 FY24 Locked-in Growth and Outlook • Achieved double digits revenue growth of 13% in Q2FY24 AESL well placed to capture future growth through multiple avenues: • Robust under-construction pipeline worth Rs. 150 bn in Transmission and • Co
Slide 11: Q2 FY24 Financial Highlights (YoY)
Revenue EBITDA PAT Rs. 3,421 Cr Rs. 1,443 Cr Rs. 284 Cr 13% up YoY 6% up YoY 46% up YoY Q2 FY24 Financial Highlights (YoY) 11
Slide 12: Consolidated Financial Highlights Q2FY24 YoY
AESL: Consolidated Financial Highlights Q2FY24 YoY Operational Revenue EBITDA (In Rs Cr) 3421 1443 1362 3032 Q2FY23 Q2FY24 Q2FY23 Q2FY24 PAT Cash Profit 284 757 748 194# Q2FY23 Q2FY24 Q2FY23 Q2FY24 12 Note: #Q2 FY23 PAT was lower on account of adverse forex movement (MTM) of Rs 138 Cr (MTM adjustmen
Slide 13: Segment–wise Financial Highlights Q2FY24 YoY
AESL: Segment–wise Financial Highlights Q2FY24 YoY Operational Revenue EBITDA (In Rs Cr) 2480 907 834 2164 528 536 868 941 Transmission Distribution Transmission Distribution Q2FY23 Q2FY24 Q2FY23 Q2FY24 PAT Cash Profit 259 239 480 501 268 256 25 -45# Transmission Distribution Transmission Distributi
Slide 14: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY24 YoY
AESL: Transmission Utility - Revenue and Operating EBITDA Bridge Q2FY24 YoY (In Rs Cr) Revenue (excluding incentive) up 8% supported by Operating EBITDA up 9% driven by strong revenue revenue contribution from new line elements 83 68 (27) 4 (5) 12 915 854 847 786 Q2 FY24 Newly operational Additional
Slide 15: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q2FY24 YoY
AESL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge Q2FY24 YoY (In Rs Cr) Revenue up 15% driven by higher energy demand Operating EBITDA ended 13% higher 256 316 ( 228 ) 2,480 32 43 514 ( 24 ) 21 (26) 455 ( 10 ) (5) 2,164 Q2 FY24 Sale of energy Wheeling Sale of energy Other Transmiss
Slide 16: 1H FY24 Financial Highlights (YoY)
Revenue EBITDA PAT Rs. 7,042 Cr Rs. 2,821 Cr Rs. 466 Cr 16% up YoY 5% up YoY 28% up YoY 1H FY24 Financial Highlights (YoY) 16
Slide 17: Consolidated Financial Highlights 1HFY24 YoY
AESL: Consolidated Financial Highlights 1HFY24 YoY Operational Revenue EBITDA (In Rs Cr) 2821 7042 6081 2688 1HFY23 1HFY24 1HFY23 1HFY24 PAT Cash Profit 1479 466 363^ 1406# 1HFY23 1HFY24 1HFY23 1HFY24 Note: #Consolidated cash profit of Rs 1,406 Cr in 1HFY24 was 5% lower YoY due to the one-time tax i
Slide 18: Segment–wise Financial Highlights 1HFY24 YoY
AESL: Segment–wise Financial Highlights 1HFY24 YoY Operational Revenue EBITDA (In Rs Cr) 1769 5217 1644 4377 1044 1052 1704 1825 Transmission Distribution Transmission Distribution 1HFY23 1HFY24 1HFY23 1HFY24 PAT Cash Profit 948 918 473 421 531 488 45 -110# Transmission Distribution Transmission Dis
Slide 19: Transmission Utility - Revenue and Operating EBITDA Bridge 1HFY24 YoY
AESL: Transmission Utility - Revenue and Operating EBITDA Bridge 1HFY24 YoY (In Rs Cr) Revenue (excluding incentive) up 7% supported by Operating EBITDA up 7% driven by strong revenue revenue contribution from new line elements 158 115 12 (56) ( 13 ) 6 1,773 1,661 1,658 1,553 H1 FY24 Newly operation
Slide 20: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge 1HFY24 YoY
AESL: Distribution (AEML+MUL) - Revenue and Operating EBITDA Bridge 1HFY24 YoY (In Rs Cr) Revenue up 19% driven by higher energy demand Operating EBITDA ended 7% higher YoY (1,067 ) 281 743 840 45 (39 ) 75 51 (17) ( 11 ) 5,217 961 901 4,377 H1 FY24 Sale of Energy Sale of Energy Wheeling Other Transm
Slide 21: 1HFY24 – Debt Profile
1HFY24 – Debt Profile 21
Slide 22: AESL's 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 23: Q2 FY24 Operational Highlights (YoY)
▪ Average Transmission System Availability 99.68% ▪ Transmission Network at 19,862 ckm added 219 ckm ▪ Supply Reliability (ASAI) in AEML is above 99.99% ▪ Distribution Loss in AEML further improved to 5.81% Q2 FY24 Operational Highlights (YoY) 23
Slide 24: Transmission Utility – Key Operating Metrics Q2FY24 (YoY)
AESL: Transmission Utility – Key Operating Metrics Q2FY24 (YoY) Transmission Network Length(2) (ckm) Power Transformation Capacity(2) (MVA) 19,862 18,795 53,161 40,001 Added 219 ckm to the Continuous expansion operational network in in transformation Q2 with total network capacity on account of at 1
Slide 25: Distribution Utility (AEML) – Key Operating Metrics Q2FY24 (YoY)
AESL: Distribution Utility (AEML) – Key Operating Metrics Q2FY24 (YoY) Supply Reliability (ASAI) (%) SAIDI (mins), SAIFI (nos.) and CAIDI (mins)(1) SAIFI SAIDI CAIDI 99.999% 99.999% 32.72 27.45 Reliability Maintained supply parameters like SAIDI reliability of more and SAIFI remains than 99.9% robus
Slide 26: Distribution Utility (AEML) – Key Operating Metrics Q2FY24 (YoY)
AESL: Distribution Utility (AEML) – Key Operating Metrics Q2FY24 (YoY) Consumer base (million) Distribution Loss (%)(1) E-payment (% of total collection) 3.15 79.19% 6.00% 3.10 Increase in 5.81% Distribution loss E-payments share 74.86% consumer base improving increasing with reflecting AEML consist
Slide 27: 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 “Golden Peacock Award in Best-in-class ESG ratings Environment Management Net Water Positive From global rating agencies: (GPE
Slide 28: 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 29: Environment
AESL: Key Environmental Indicators and Milestones Key Performance Indicators Current Status Baseline Medium to Long-term Targets Energy Mix & Emission Intensity AEML has achieved 38% renewable in power mix in 30% by 2023 - RE share in power procurement 3% FY19 60% by FY27 September 2023 (achieved 38
Slide 30: Social
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 31: Social
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 32: Governance
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 33: Governance
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 34: Enhanced Safety Culture
AESL: Enhanced Safety Culture Safety Initiatives During Q2FY24 Safety Performance in Q2FY24 • Safety training: 55,999 man-hours of safety training and awareness during Q2 FY24 Transmission Distribution (AEML) • Positive Safety Culture: Safety Parameters Q2FY24 Q2FY23 Q2FY24 Q2FY23 o Campaign on ‘UCH
Slide 35: Recent Award and Achievements
Recent Award and Achievements 35
Slide 36: Recent Awards & Achievements
AESL: Recent Awards & Achievements AEML secured Rank 1 out of 71 discoms AESL received the 'Emerging AESL is in the Top 50 of India’s Most evaluated and scored 99.6% out of Company of the Year Award 2022' Sustainable Companies in the annual 100 in the Integrated Discom Ranking at the ET Awards on Co
Slide 37: 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 38: 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 39: AESL's Operational Asset Portfolio as of Q2FY24 (1/2)
AESL’s Operational Asset Portfolio as of Q2FY24 (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 Mundra
Slide 40: AESL's Operational Asset Portfolio as of Q2FY24 (2/2)
AESL’s Operational Asset Portfolio as of Q2FY24 (2/2) Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% Obra-C Lakadia WRSS – XXI Jam Karur Khambaliya WKTL Transmission Badaun Banaskantha (A) Obra Lakadia Lakadia - Jam Warora Karur Banaskantha Bhuj Kham- Kurnool Transmi baliya ssion Proje
Slide 41: AESL's Under-construction Asset Portfolio as of Q2FY24
AESL‘s Under-construction Asset Portfolio as of Q2FY24 Adani Energy Solutions Limited Since AESL’s evolution its Transmission Network 100% 100% 100% 100% 100% 100% 100% 100% 100% (ckms) has grown 3.5x and expanded into Distribution businesses Kharghar MP AEMIL Khavda- KPS-1 STSL NKTL WR-SR KTL - Vik
Slide 42: AESL's Smart Metering Under-construction Portfolio as of Q2FY24
AESL‘s Smart Metering Under-construction Portfolio as of Q2FY24 Adani Energy Solutions Limited 100% 100% 100% 100% 100% 100% 100% 100% BEST APDCL APSPDCL – APEPDCL APCPDCL MSEDCL MSEDCL NBPDCL Phase 1 & 2 BEST Smart Adani Energy Adani Energy Adani Energy Bhandup Baramati Zone Siwan, Suran, NE Smart
Slide 43: 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 44: Thank You
MUSHKILON KI adani NAHI SUNTE, HUM KARKE DIKHATE HAIN. #HumKarkeDikhateHain — adani Energy Solutions Thank You
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