Adani Energy Solutions Limited (AESL) has announced the incorporation of three new wholly owned subsidiaries, marking a significant expansion in its organizational structure. The company, a key player in the Indian energy sector, has established these entities to strengthen its presence in various regions of the country.

New Subsidiaries

The three newly incorporated subsidiaries are:

1. Adani Electricity Kalyan Dombivli Limited (AEKDL)
2. Adani Electricity Pune Limited (AEPL)
3. Adani Electricity Vidharbha Limited (AEVL)

All three subsidiaries were registered with the Registrar of Companies, Gujarat at Ahmedabad.

Corporate Structure and Capitalization

Each of the new subsidiaries has been incorporated with an authorized and paid-up share capital of Rs. 1.00 lakh. Adani Energy Solutions Limited holds 100% ownership in each of these entities, acquiring equity shares at a face value of Rs. 10.00 each.

Business Focus

The newly formed subsidiaries are set to operate in the electric utilities sector. According to the company's disclosure, these entities have been established to carry out various aspects of the electricity business, including:

• Production
• Generation
• Conversion
• Transformation
• Transmission
• Processing
• Storing
• Supply
• Distribution of electricity

Strategic Implications

This move by Adani Energy Solutions suggests a strategic expansion of its operations into specific regions of Maharashtra:

• Kalyan-Dombivli: A major urban conglomeration in the Mumbai Metropolitan Region
• Pune: One of Maharashtra's largest cities and an important industrial and educational hub
• Vidarbha: A region in eastern Maharashtra known for its agricultural and industrial significance

The creation of these subsidiaries indicates AESL's intent to potentially increase its market presence and service capabilities in these areas.

Current Status

As of now, all three subsidiaries are yet to commence their business operations. The company has stated that no governmental or regulatory approvals were required for the incorporation of these entities.

Disclosure and Compliance

Adani Energy Solutions Limited made this announcement in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made to both the BSE Limited and the National Stock Exchange of India Limited.

Adani Energy Solutions Limited (AESL) has reported robust financial results for the first quarter, showcasing significant growth across key metrics. The company's performance was driven by strong execution in its transmission, distribution, and smart metering businesses.

Financial Highlights

• Total income rose by 28% year-on-year
• EBITDA increased by 14% to INR 2,017.00 crore
• Profit After Tax (PAT) surged by 71% to INR 539.00 crore
• Cash profit improved to over INR 1,000.00 crore

Operational Achievements

Transmission Business

• Commissioned three transmission projects: Khavda Phase 2 Part-A and Khavda Pooling Station in Gujarat, and Sangod Transmission Project in Rajasthan
• Secured a new transmission project, bringing the under-construction order book to INR 59,300.00 crore
• Achieved 99.8% line availability, earning an incentive of INR 29.00 crore
• Total transmission network expanded to 26,696 circuit kilometers

Smart Metering

• Installed 24 lakh smart meters during the quarter
• Cumulative installations reached 55.44 lakh meters, with 51 lakh already commissioned and generating revenue
• On track to achieve the target of 70 lakh meters for the current fiscal year

Distribution Business

• Distribution losses in AEML improved to 4.24% from 5.18% in the previous year
• Mundra distribution company reported 22% year-on-year sales growth

New Business Initiatives

• Launched C&I (Commercial and Industrial) business, serving 14 industrial customers with 717 MW load
• Commenced construction of India's largest district cooling facility at Mundra with 45,000 tons refrigeration capacity

Capital Expenditure and Future Outlook

AESL's consolidated capex increased to INR 2,224.00 crore from INR 1,313.00 crore in the same quarter last year. The company expects significant opportunities across its business verticals:

• Transmission: INR 90,000.00 crore bidding pipeline, including two large HVDC projects
• Distribution: Potential privatization opportunities in UP and second license application for Navi Mumbai
• Smart Metering: Targeting to maintain a 22% market share in future opportunities

Kandarp Patel, CEO of AESL, commented on the results: "We are pleased to share that AESL has reported another good quarter in terms of financial and operational performance, highlighting AESL's strong on-ground execution and focused O&M. The company continues to focus on unlocking the tied-up growth through timely completion of transmission projects, ensuring stable performance in the distribution segment, and maintaining industry-leading daily smart meter installation run rate."

With its strong performance and strategic initiatives, Adani Energy Solutions Limited appears well-positioned to capitalize on the growing opportunities in India's energy infrastructure sector.