NEW DELHI, Jan 19: Adani Energy Solutions Ltd, the leading electricity transmission and distribution company in India, has secured two new transmission projects, elevating its order book to Rs 54,700 crore—over three times the amount it had at the start of the current fiscal year in April 2024.
In the third quarter of FY25 (October-December 2024), the company won two transmission projects valued at Rs 28,455 crore in Rajasthan, connected to the renewable energy park, according to a report by Jefferies.
Among these projects is the Rs 25,000-crore Bhadla-Fatehpur HVDC initiative, marking AESL’s most significant order acquisition to date.
These recent developments have increased the company’s market share in tariff-based competitive bidding (TBCB) orders to 24 percent, up from 17 percent in the previous quarter.
AESL’s current order book now totals Rs 54,700 crore, compared to Rs 17,000 crore at the beginning of this fiscal year, making it the largest among all private sector transmission companies.
During the quarter, AESL commissioned one transmission line, contributing over 1,000 circuit kilometers to its network, which now stands at 26,485 cKM with a transformation capacity of 84,286 MVA. As of December 2023, these figures were 20,422 cKM and 54,661 MVA.
In terms of distribution, the company serves over 3 million customers in the Mumbai metropolitan and Mundra SEZ areas. In this quarter, power sales in Mumbai experienced a 3 percent year-on-year growth, reaching 2.57 billion units, whereas the Mundra market saw a substantial 30 percent increase to 236 million units.
The company has applied for a parallel distribution license in Navi Mumbai, Kutch, and the Ghaziabad-Jewar-Bulandshahr region.
Jefferies anticipates a 16 percent revenue compound annual growth rate (CAGR) and a 62 percent profit CAGR for AESL between FY24 and FY27, driven by consistent growth in both the transmission and distribution sectors. The company aims to commission projects worth Rs 27,300 crore by October 2026.
In the realm of smart metering, AESL was the lowest bidder in a cancelled tender for 8.2 million meters in Tamil Nadu, which is separate from its existing pipeline of 22.8 million meters.
AESL expressed its intention to participate in the rebidding when it occurs.
Jefferies projects that AESL will add 4.5 million smart meters by the end of FY25 and a total of 10 million by FY26, with 7 million derived from existing contracts and the rest from new acquisitions.
The company’s capital management strategy focuses on minimizing interest cost volatility through long-tenure bonds and refining its debt management to align with the lifespan of its various assets at fixed rates where feasible.
According to the report, “AESL’s management emphasizes reducing volatility in its asset base by refinancing and maintaining debt that aligns with asset lifespan at fixed rates; employing vendor back-to-back arrangements to mitigate commodity price fluctuations; and conducting land studies to accelerate project execution.” However, potential risks include challenges in maintaining interest rates and potential market share losses. (PTI)
