Adani Transmission wins 3 smart metering orders in Q1, shares rise 2%

Date : 19/07/2023
Read: 3 mins

How did Adani Transmission's 2% rise come about? Explore the story behind their 3 smart metering orders in Q1. To know more, read the complete article.

In a significant development, Adani Transmission has secured three smart metering projects in Andhra Pradesh, marking a major milestone for the company. The projects involve the installation of 2.7 million smart meters, with a contract value of Rs 3700 crore. This achievement has propelled Adani Transmission's stock to rise by 2% in the first quarter. The company's success in securing these projects highlights its commitment to revolutionising the energy sector through advanced metering solutions. This article delves into the details of Adani Transmission's remarkable accomplishment and explores the implications for the industry.

Adani Transmission secures 3 smart metering projects in AP.
Smart metering segment poised for significant growth.
Company adds 550 circuit kms to the operational network in Q1.
Revenue expected to expand by 18% and cross Rs 4,000 crore in annuity income.

Also Read: Investors Flocking to Adani Group Stocks - Is It Too Late to Get In?

Price performance of the company

Given below is daily candlestick chart of the company. For the past 2 months, the prices seem to be consolidating in a narrow range.

The share is currently (12.30 pm on 19-07-2023) trading at 789.2 on the NSE. The stock is up 5% on a weekly basis and down 2% on a monthly basis.

Highlights of the company's Q4FY2023 results are given below:

The company's net profit for the Q4 FY2022-23 grew by 70% to INR 389 crore, from INR 229 crore on a YOY basis.
The company's consolidated revenue for for Q4 FY2022-23 increased by 17% year-over-year (YoY) to INR 3031 crore, while operational EBITDA surged by 28% YoY to INR 1570 crore.
The company's profit after tax (PAT) in the transmission business grew by 11% in the fourth quarter, while PAT in the distribution business grew by a whopping 478%.

Factors contributing to the company’s good Q1 FY2023-24 performance include the following:

Governments and analysts believe that smart grids and meters will enhance power networks. The smart metering segment is poised for significant growth due to advancements in software, cloud computing, and the IoT.
Adani Electricity Mumbai Ltd., a wholly owned subsidiary of Adani Transmission, sold 275.4 million units in Q1, up 7.61% YoY due to an uptick in energy demand.
Adani Electricity Mumbai blends 40% renewable energy with thermal power to meet customer demand. The company said this has helped it reduce tariffs competitively compared with rival distributors in the city.

Also Read: Adani Transmission Shines Bright: 70% YoY Profit Boost and 17% Revenue Increase, Lights Up Q4 Report

Adani Transmission has delivered strong Q4 results, and has also bagged 3 smart metering projects in Andhra Pradesh worth INR 3700 crore. The company's distribution loss has reduced, and it is on track to meet its revenue goals for the year. However, the investor must do due diligence before investing because the debt-to-equity ratio of the company is 2.93 and TTM P/E is 69. These are much higher than the peers in the industry.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.