Adani Transmission Q4FY23 PAT up 69.6% at Rs389 crore due to higher gross margins and spike in deferral gains

Adani Transmission reported 12.9% growth in net sales revenues for the March 2023 quarter on consolidated basis at Rs3,358 crore. Revenues were down -5.46% on sequential basis. For the quarter, the transmission revenues were up 30% while the GTD (essentially the Mumbai generation, transmission, and distribution) business saw growth of 21.6% on yoy basis. In terms of operating profit growth, the transmission business profits grew 14% yoy while the operating profits from the GTD business actually spiked by 91.4%.

While the operating profits for the quarter were up 40.32% overall at Rs1,153 crore, the net profits grew 69.6% on yoy basis to Rs389 crore. The operating profits got a boost from sharply higher gross margins in the quarter due to static costs in spit of higher revenues. The net profit got a big boost from sharply higher gains from net deferral changes. These contributed to a sharp spike in the profits of Adani Transmission on a yoy basis.

Financial highlights for Mar-23 compared yoy and sequentially

The operating margins improved yoy from 27.62% to 34.34% due to improved contribution margin from the core power operations. Net margins also improved at 11.6% compared to 7.72% in year ago period. Company reported visible improvement in the interest coverage and the debt service coverage ratios.