Gas distributing major Adani Total Gas Limited on Thursday posed a consolidate net profit of Rs 138 crore for the first quarter ended June 30, 2022, a minor slip of 3 per cent from Rs 143 crore the company reported in same quarter last year. However, the company’s revenue from operations more than doubled to Rs 1,110 crore while EBITDA rose 6 per cent to Rs 228 crore.
Despite higher gas prices ate into increased CNG and piped cooking gas sales volumes across the country, Adani Total Gas reported a 61 per cent rise in CNG sales to automobiles to 109 million standard cubic meters (mmscm) in the quarter, while its piped cooking gas sold to households rose 3 per cent to 74 mmscm.
The company also said there was a significant increase in the price of domestic gas available for city gas operations as well as that of imported LNG in the quarter. Meanwhile, the lower allocation of domestically produced gas during the June quarter resulted in buying more imported fuel, impacting the gas cost as well as the gross margins.
“ATGL has calibrated its retail price revisions to balance the interest of its consumers and its shareholders from the impact of sudden spurt in the gas purchase price,” the company said in an official statement.
“It has been a challenging scenario for the city gas distribution (CGD) industry with significantly high input gas prices mainly due to geopolitical factors as well as supply shortages across the globe, which are likely to continue in the near future,” said Suresh P Manglani, CEO of Adani Total Gas Ltd (ATGL).
He said the number of piped cooking gas customers of ATGL have crossed 6 lakh and the firm added another 15 CNG stations taking the total to 349 CNG stations across the cities where it operates.
“On the financial front, with 31 per cent growth in volumes, ATGL was able to sustain its profitability number by optimizing its opex. ATGL has been focussing on creating the infrastructure so that it can be future ready to serve its large consumer base and contribute towards the nation’s journey to a gas-based economy,” he said.
Additionally, ATGL shares gained over 2 per cent to end at Rs 3334.65 on the Bombay Stock Exchange (BSE) on Thursday.