Adani Transmission shares fall over 3%, here’s what is dragging the stock

Adani Transmission share price fell over 3% on Tuesday’s trade following its Q4FY23 earnings number. Adani Transmission shares began trading on the BSE at ₹832.35 per share, the same as the previous closing. During Q4FY23, the company’s profit after tax increases by 70% to ₹389.5 crore, while revenue grewby a single digit

According to analysts, as of now there are not seeing any major traction in this counter, overall the prices are in a range where strong support is seen around 750 whereas 900 is a resistance.

“Overall this is under performer as compared to other Adani stocks and one can rather focus on Adani Ports, Adani Enterprises and Ambuja cement,” said Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.

The company’s consolidatednet profit for the quarter ended March was ₹389.45 crore, up 69.62% from ₹229.59 crore in the same quarter last year. However, the performance fell 17.96% from the previous quarter’s PAT of ₹474.72 crore. The cash profitof the Adani Group-backed company increased by 28% year on year to ₹977 crore.

Profitability was boosted by a one-time income of ₹148 crore from a regulatory order in the Transmission business (a net positive impact of ₹21 crore after adjusting for a provision of ₹131 crore (net off tax ₹101 crore) and aided by a mid-term true-up order from the regulator in Adani Electricity Mumbai Ltd (AEML).

However, Adani Transmission reported a consolidated total income of ₹3,200.50 crore in Q4 FY23, a 4.97% increase from ₹3,048.96 crore in Q4FY22. Revenue in the previous quarter was ₹3,181.62 crore.

According to trendlyne data, the stock price fell 62.8% and underperformed its sector by 53.8% in the past year. The stock has fallen 80.79% from 52-week high of 4236.8 recorded on March 1, 2023.

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