Fitch retains negative outlook for Adani Energy despite removing it from watch, citing ongoing US probe.
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Fitch Ratings has removed Adani Energy from its watchlist, but maintained its negative outlook on the company amid an ongoing investigation in the United States. The credit rating agency had placed Adani Energy on a negative watchlist in September 2021, citing concerns over its high debt levels and regulatory issues.
Fitch stated that it has removed Adani Energy from the watchlist following a review of the company’s financial performance and the progress made in addressing its debt and regulatory issues. However, the agency maintained its negative outlook, citing the ongoing investigation by the US Securities and Exchange Commission (SEC) into Adani Energy’s accounting practices.
The SEC investigation, which began in 2022, is focused on the company’s disclosure practices, including its accounting for related-party transactions and its use of proxy launders. The probe is also examining Adani Energy’s transactions with its parent company, the Adani Group, and other related entities.
Fitch highlighted that the negative outlook is driven by the potential for a negative impact on Adani Energy’s financial performance and reputation if the SEC investigation leads to adverse findings or penalties. The agency also expressed concerns over the company’s high debt levels, which were exacerbated by the COVID-19 pandemic and the Indian government’s actions to contain its spread.
Despite these concerns, Fitch noted that Adani Energy has made some progress in addressing its debt issues, including reducing its debt-to-equity ratio and improving its capital structure. The agency also recognized the company’s efforts to increase its transparency and disclosure, including the publication of its annual report and the appointment of a new management team.
Overall, Fitch’s decision to remove Adani Energy from its watchlist while maintaining a negative outlook reflects the company’s progress in addressing its financial issues, but also the significant risks associated with the ongoing SEC investigation and the potential for a negative impact on its financial performance and reputation.
ICICI Securities has retained its Buy rating on Adani Energy, with a revised target price of Rs 1,101.
ICICI Securities has maintained its “buy” call on Adani Energy Solutions (AESL) with a revised target price of Rs 1,101, down from Rs 1,318 earlier. The company’s current market price is Rs 737.2. AESL is a Large Cap company operating in the Power sector and has a market capitalization of Rs 88276.25 crore.
The company reported its Q3FY25 numbers, which showed revenue of Rs 53.7 billion, EBITDA of Rs 16.6 billion, and net profit of Rs 6.25 billion, with a notable reversal of net deferred tax liability of Rs 1.85 billion. AESL’s transmission pipeline has zoomed 3x in the last 12 months, and the company has won five new transmission projects worth Rs 250 billion. It also has a smart meter pipeline of 22.8mn with estimated EBITDA potential of Rs 20 billion.
The company’s distribution business continues to perform well, with energy demand up 3% to 30% YoY in the Mumbai circle and Mundra Utility. Despite a 5.65% decline in Q3FY25 total income from the previous quarter, the company’s net profit after tax (PAT) showed a significant jump of 24.38% from the same quarter last year.
ICICI Securities maintains a “buy” rating on AESL, driven by its solid Q3 performance, strong growth prospects, and attractive valuations. The analyst expects the company to continue delivering strong earnings growth, driven by its transmission business and smart meter pipeline. Promoters hold a significant 69.94% stake in the company, while FIIs own 17.34% and DIIs hold 5.85%.
Adani Energy Solutions is set to announce its Q3 FY 2025 results, with a scheduled earnings release and conference call on [date and time].
Adani Energy Solutions, a subsidiary of the Indian business conglomerate Adani Group, is set to announce its quarterly earnings for the third quarter (Q3) of the 2024-2025 financial year. The results are expected to be released on [Date] at [Time] IST. The company will also hold a conference call at the same time to discuss its financial performance.
The Q3 results are likely to provide insights into Adani Energy Solutions’ performance across various segments, including renewable energy, energy storage, and energy services. The company has been focusing on growing its renewable energy portfolio, and the Q3 results may shed light on the progress made in this area.
Adani Energy Solutions has been actively involved in various renewable energy projects, including wind and solar power projects, energy storage solutions, and green hydrogen production. The company has also been expanding its presence in the energy services segment, providing turnkey solutions to its clients in the energy and infrastructure sectors.
During the Q3 period, Adani Energy Solutions may have faced challenges due to the ongoing global energy crisis, ongoing supply chain disruptions, and the impact of the COVID-19 pandemic. The company’s ability to navigate these challenges and adapt to the changing market conditions will be crucial in determining its future growth trajectory.
The conference call is expected to be hosted by the company’s management team, who will provide a detailed analysis of the Q3 performance, discuss the company’s strategy, and answer questions from analysts and investors. The call is likely to be webcast live on the company’s website, allowing investors and analysts to participate remotely.
The Q3 results and conference call are crucial for Adani Energy Solutions as they provide insights into the company’s financial performance, strategic initiatives, and future prospects. Investors, analysts, and stakeholders will be keenly awaiting the release of the results and looking forward to the company’s guidance on its plans for the next quarter and financial year.
Adani Energy Solutions has awarded a transmission line EPC (Engineering, Procurement, and Construction) contract to Bajel Projects for executing a key project.
Bajel Projects has won an engineering, procurement, and construction (EPC) contract from Adani Energy Solutions for the design and implementation of a transmission line. The transmission line is expected to facilitate the growth of renewable energy projects in India by enabling the transportation of large volumes of renewable power. According to sources, the transmission line project involves a high-voltage transmission system spanning approximately 550 km in three separate stretches.
Under the agreement, Bajel Projects will be responsible for engineering, designing, and executing the construction work of the transmission line, along with related high-voltage transmission facilities, such as substations, switchyards, and control panels. The scope of the work includes supply of all the requisite materials, execution of site clearing, and infrastructure development. Additionally, the EPC contract calls for commissioning the transmission line by 24 months after obtaining all the required clearances. With this development, Adani Energy Solutions, a part of Adani Enterprises, continues its expansion efforts to promote India’s clean energy segment.
Adani Energy Solutions reports a net loss of Rs 824 crore in its first quarter’s financial performance.
Adani Enterprises, the renewable energy arm of the Adani Group, has reported a net loss of Rs 824 crore for the first quarter (Q1) of 2022-23. The company’s total revenue declined 13.6% year-on-year to Rs 2,454 crore in Q1. The loss in the quarter is due to higher operating expenses and higher finance costs. The company’s operational costs increased 25.7% year-on-year to Rs 4,644 crore, while its finance costs rose 54.6% to Rs 1,134 crore. Adani Energy Solutions also reported a significant decline in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin, which fell to 7.2% compared to 14.2% in Q1 of the previous year. The company attributed the decline in profitability to the presence of highly competitive and volatile markets, as well as the impact of COVID-19-related restrictions on project execution. However, Adani Energy Solutions remains optimistic about its future growth prospects, citing its strong order book and ongoing efforts to diversify its revenue streams.
The Tamil Nadu government has rescinded the tender for smart meters awarded to Adani Energy Solutions.
The Tamil Nadu Power Distribution Corporation (TANGEDCO) has cancelled a global tender for procuring smart meters due to the high cost quoted by Adani Energy Solutions Ltd (AESL). The tender was floated in August 2023 for four packages, with AESL being the lowest bidder for one package covering eight districts, including Chennai. However, the cost quoted by AESL was reportedly higher, leading to the cancellation of the tender on December 27, 2024. A re-tender is likely to be floated. The government’s decision comes amid controversy surrounding industrialist Gautam Adani and allegations of bribery in solar power contracts. The US prosecutors had indicted Adani and others in connection with the matter, which Adani’s company has refuted.
CERC awards transmission licence to Khavda IV-A Power Transmission.
The Central Electricity Regulatory Commission (CERC) has granted a transmission licence to Khavda IV-A Power Transmission Ltd, a subsidiary of Adani Energy Solutions Ltd (AESL), for a period of 25 years. The company is developing an interstate transmission system (ISTS) scheme to evacuate power from renewable energy zones in Gujarat. The project, which will be completed by August 2026, involves the creation of bus sections, lines, and substations, and is estimated to cost around Rs.4,100 crore. AESL acquired Khavda IV A Power Transmission Ltd through an e-reverse auction (e-RA) and quoted a tariff of Rs.5089.66 million, which was 29.4% lower than its initial bid. AESL has a growing portfolio of ISTS-TBCB projects, with eight schemes currently under construction, including four awarded in the current fiscal year.
Adani Enterprises is expected to report a significant revenue boost, soaring to Rs 1.5 lakh crore by FY27, accompanied by a 46% increase in net earnings.
AEL (Adani Enterprises Limited) is one of India’s largest listed incubators, responsible for conceiving, growing, and demerging numerous successful businesses. The company has a proven track record of creating and nurturing various industries, including ports, gas distribution, power transmission, renewable energy, and commodities. Some of the notable companies born out of AEL include Adani Ports & SEZ, Adani Total Gas, Adani Energy Solutions, Adani Green Energy, Adani Power, and Adani Wilmar.
Adani Energy Solutions Launches Dedicated Power Transmission Division
Adani Energy Solutions Ltd (AESL) has formed a new subsidiary, Adani Energy Solutions Step-Eleven Limited (AESSEL), to focus on transmission, distribution, and power supply services. The new entity was incorporated with the Registrar of Companies in Ahmedabad, Gujarat on December 17, 2024, and is yet to begin operations. AESSEL has been established to provide power and other infrastructure services, aligning with Adani Energy’s strategy. Unfortunately, the article cuts off abruptly, mentioning ET MSME Awards, which is not directly related to AESL or AESSEL.
Adani Energy Agrees to Manage Kenya’s Electricity Transmission Network Infrastructure
Indian billionaire Gautam Adani’s company, Adani Energy Solutions Ltd (AESL), has signed a 30-year agreement with the Kenya Electricity Transmission Company Ltd (Ketraco) to build and operate key electricity transmission lines in Kenya. The project aims to upgrade Kenya’s transmission infrastructure to ensure reliable power supply and overcome persistent power outages. The deal is estimated to cost around $736 million and will be funded through debt and equity, with the government of Kenya not incurring any financial expenditure. AESL will manage the transmission lines for 30 years, ensuring sustainable and efficient operations, and then transfer the project and assets to Ketraco. The project involves developing three transmission lines and two substations. This partnership is expected to support the government’s development goals and ensure a secure energy supply for Kenya. The deal marks a significant collaboration between an Indian company and a Kenyan project, demonstrating the potential for international investment in Africa’s energy sector.