Adani Transmission Ltd (ATL) today said its consolidated profit-after-tax saw an eight-fold rise at Rs 842 crore in the quarter through December 2017.
The company had posted a PAT of Rs 99.28 crore during the corresponding period of the previous fiscal.
"PAT for Q3 FY18 has increased to Rs 842 crore compared to Rs 99 crore for Q3 FY17. On a comparable basis excluding recovery of arrears, PAT for the Q3 FY18 has increased to Rs 155 crore against Rs 99 crore of Q3 FY17," the company said in a statement.
Its consolidated income rose to Rs 1,807.81 crore during the period under review as against Rs 734.43 crore in the corresponding period of the previous fiscal.
Total expenses were recorded at Rs 727.52 crore as against Rs 611.03 crore during the corresponding period last fiscal.
"The overall financial performance was good," the company said, adding that the operational EBIDTA for Q3 of FY18 is Rs 1,432 crore.
The company said it has signed a binding share purchase agreement (SPA) with R-Infra to acquire the Mumbai Generation, Transmission and Distribution (GTD) business.
The GTD business caters to 3 million customers, making it the country's largest private sector integrated power utility, entailing 1,892 MW of power distribution along with generation facilities, it said.
"The company is in the process of finalising the financing for the transaction. The company is in discussions with the banks for existing debt package of Rs 8,500 crore at the target SPV level, subject to market conditions and other considerations," it said in the statement.
The company also said that as per resolutions of the board and shareholders of the company dated May 27, 2017 and August 10, 2017, respectively. The company may raise equity capital not exceeding Rs 5,000 crore, subject to market conditions, receipt of approvals (if any) and other factors.
"In the interim ATL promoter support will be used to complete the Transaction. Pursuant to the SPA, during the quarter under this financial result, the company with promoter support has given loan of Rs 2,102 crore to R-Infra," it said.
With this acquisition, apart from largest distribution network, the cumulative transmission network of ATL will reach around 12,000 circuit kilometres (cktkms), out of which it said about 9,540 cktkms are under operation and about 2,350 cktkms under various stages of construction.
The transformation capacity of ATL will also increase to 19,300 MVA from 34 substations spread across the country.
Adani Transmission Limited will remain the largest private sector transmission company in the country, it said.
Gautam Adani, Chairman Adani Group, said, "The acquisition marks our foray in the Distribution sector in India. We see the distribution sector as the next sun rise sector as India embarks on its mission to achieve 24x7 power for all. We see a massive growth opportunity and will look at both organic and inorganic opportunities to build a market leading distribution company."
With this acquisition, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India, he said.
The Adani Group is one of India's leading business houses with aggregate revenue of over USD 12 billion.
The shares of the company closed at Rs 231.40 apiece on the BSE, up 3.58 per cent from the previous close.
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