What explains the sharp surge in profits of Adani Transmission?
Answer
Answer
I think you are talking about Adani Total Gas. The profits of Adani Transmission were flat with, the power transmission arm of Adani group, reported 1.08% growth in sales revenues at Rs3,165.35 crore. Revenues were also flat sequentially. For the FY22 full year, the sales revenues stood higher by 13.4% at Rs11,862 crore. The company reported surge in revenues across its transmission vertical and the GTD business vertical yoy. However, revenues from power trading were lower compared to last year. Both Transmission and GTD operating profits surged sharply in the fourth quarter.
Adani Transmission
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 3,165.35
₹ 2,875.60
10.08%
₹ 3,085.20
2.60%
Net Profit (Rs cr)
₹ 229.59
₹ 238.42
-3.70%
₹ 267.03
-14.02%
Diluted EPS (Rs)
₹ 1.75
₹ 1.67
₹ 1.85
Net Margins
7.25%
8.29%
8.66%
Net profits for Q4 were flat at Rs229.59 crore. Adani Transmission witnessed a sharp spike in cost of power purchased as well as a sharp spike in the fuel and transport costs during the quarter. However, this was offset by positive net changes in the regulatory deferral account. Net margins stood at 7.25% in Mar-22 quarter compared to 8.29% in Mar-21. Net cash generated from operations grew on regulatory deferral accounting.