Adani Energy Solutions Expands Order Book to Rs 547 Billion
POWER & RENEWABLE ENERGY

Adani Energy Solutions Expands Order Book to Rs 547 Billion

Adani Energy Solutions Limited (AESL), a leading electricity transmission and distribution company electricity transmission and distribution company, has expanded its order book to Rs 547 billion, a significant increase from Rs 170 billion at the start of fiscal year 2024-25. This growth follows the company’s successful acquisition of two major transmission projects, boosting its market position.

In the third quarter of FY25 (October-December 2024), AESL secured two large transmission projects worth Rs 284.55 billion in Rajasthan, linked to a renewable energy park. The most notable of these is the Rs 250 billion Bhadla-Fatehpur HVDC transmission project, marking AESL's largest order win to date. These new contracts have propelled AESL's market share in Tariff-Based Competitive Bidding (TBCB) orders to 24%, up from 17% in the previous quarter.

AESL also made strides in expanding its transmission infrastructure, commissioning a new transmission line that added over 1,000 circuit kilometers, bringing its total network to 26,485 circuit kilometers and a transformation capacity of 84,286 MVA. This represents a substantial growth from 20,422 cKM and 54,661 MVA in December 2023. On the distribution front, AESL supplies power to over 3 million customers in Mumbai and the Mundra SEZ. The company reported a 3% increase in power sales in Mumbai, totalling 2.57 billion units, while sales in Mundra saw a 30% jump, reaching 236 million units.

AESL is also increasing its focus on smart metering, having emerged as the lowest bidder for a cancelled tender to supply 8.2 million smart meters in Tamil Nadu. The company plans to add 4.5 million smart meters by FY25 and a total of 10 million by FY26. Analysts expect AESL to see a 16% revenue compound annual growth rate (CAGR) and a 62% profit CAGR from FY24 to FY27, driven by growth in both its transmission and distribution businesses.

AESL’s management is prioritising capital management by focusing on long-tenure bonds and refinancing debt to align with the life of its assets at fixed rates. The company is also mitigating risks through vendor agreements and land studies to expedite project execution. However, potential risks such as interest rate fluctuations and market share losses could impact AESL’s financial performance. (Financial Express)

Adani Energy Solutions Limited (AESL), a leading electricity transmission and distribution company electricity transmission and distribution company, has expanded its order book to Rs 547 billion, a significant increase from Rs 170 billion at the start of fiscal year 2024-25. This growth follows the company’s successful acquisition of two major transmission projects, boosting its market position. In the third quarter of FY25 (October-December 2024), AESL secured two large transmission projects worth Rs 284.55 billion in Rajasthan, linked to a renewable energy park. The most notable of these is the Rs 250 billion Bhadla-Fatehpur HVDC transmission project, marking AESL's largest order win to date. These new contracts have propelled AESL's market share in Tariff-Based Competitive Bidding (TBCB) orders to 24%, up from 17% in the previous quarter. AESL also made strides in expanding its transmission infrastructure, commissioning a new transmission line that added over 1,000 circuit kilometers, bringing its total network to 26,485 circuit kilometers and a transformation capacity of 84,286 MVA. This represents a substantial growth from 20,422 cKM and 54,661 MVA in December 2023. On the distribution front, AESL supplies power to over 3 million customers in Mumbai and the Mundra SEZ. The company reported a 3% increase in power sales in Mumbai, totalling 2.57 billion units, while sales in Mundra saw a 30% jump, reaching 236 million units. AESL is also increasing its focus on smart metering, having emerged as the lowest bidder for a cancelled tender to supply 8.2 million smart meters in Tamil Nadu. The company plans to add 4.5 million smart meters by FY25 and a total of 10 million by FY26. Analysts expect AESL to see a 16% revenue compound annual growth rate (CAGR) and a 62% profit CAGR from FY24 to FY27, driven by growth in both its transmission and distribution businesses. AESL’s management is prioritising capital management by focusing on long-tenure bonds and refinancing debt to align with the life of its assets at fixed rates. The company is also mitigating risks through vendor agreements and land studies to expedite project execution. However, potential risks such as interest rate fluctuations and market share losses could impact AESL’s financial performance. (Financial Express)

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