The Adani Group logo is seen on a building.
Credit: Reuters File Photo
New Delhi: Adani Total Gas Ltd, the city gas joint venture of Adani Group and French energy giant TotalEnergies, on Thursday reported 6 per cent rise in second quarter net profit as higher gas price cut gains from handsome rise in CNG and piped cooking gas volumes.
Net profit of Rs 178 crore in July-September - the second quarter of 2024-25 fiscal year - compared with Rs 168 crore a year back, the company said in a statement.
Revenue from operations was up 12 per cent to Rs 1,315 crore on account of higher volume and sales realization.
CNG volume rose by 19 per cent year-on-year to 162 million standard cubic meters on account of network expansion across multiple. Piped natural gas (PNG) sales was up 7 per cent at 80 million standard cubic meters.
"With stabilization of gas prices, there has been an increase in consumption of PNG industrial volume, and coupled with the addition of new PNG connection in domestic and commercial segments, PNG volume has increased by 7 per cent year-on-year," it said.
Overall volume increased by 15 per cent.
"Despite higher volume, cost of natural gas rose by 12 per cent due to balance gas portfolio across multiple indices," the statement said.
EBITDA rose by 8 per cent to Rs 313 crore, supported by volume growth due to infrastructure expansion and operational efficiency.
"ATGL has reported healthy operational and financial performance during the quarter. Our business is closely aligned with India's energy transition goals which we are delivering by providing cleaner and greener energy solutions to all our consumers.
"We now reach over 9 lakh consumers through our piped gas network supplying uninterrupted piped natural gas. We have commissioned our first LNG station for the transportation segment and progressing towards covering key highway networks aiding India's decarbonization march," said Suresh P Manglani, CEO, ATGL.
Following the recent reduction in APM gas allocation, which caters to auto CNG and home PNG consumers, ATGL said it is closely monitoring the situation.
"Given our diversified gas sourcing portfolio, we will ensure a calibrated pricing approach to balance the interest of our consumers," Manglani said.
With effect from October 16, 2024, there has been lower allocation of APM gas by 16 per cent as compared to earlier allocation. "While such lower allocation could impact the profitability going forward, ATGL is closely examining the situation and will calibrate its retail prices to mitigate the impact and will explore opportunities to seek competitive gas to ensure uninterrupted supply," the firm said.
In September, ATGL secured the largest global financing in India's city gas distribution business of $375 million to accelerate network infrastructure development program.
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