Adani Gas Q1 net profit grows 44 pct to Rs 79 crore
Adani Gas on Wednesday reported a 44% year-on-year (y-o-y) growth in net profit to `79.31 crore for the April-June quarter of 2019, led by increase in sales volume and improved operating margins. The sales volume for the June quarter grew 9% on-year to 137 million metric standard cubic meters per day(mmscmd) on the back of strong growth in both piped natural gas (PNG) and compressed natural gas (CNG) segments.
The PNG distribution volume grew 10% on year to 67 mmscmd, while the CNG volume grew 9% to 71 mmscm for the period. Ebitda for the June quarter grew 32% on-year to `135 crore on higher sales volumes, while operating margins were up by 227 basis points on better realisations.
The company gets close to 60% of its residential gas requirement through administered pricing mechanism (APM) gas while the company sources the gas for industrial and commercial segments from eight different natural gas suppliers such as GAIL, Petronet LNG, GSPC, IOC and others. The company sees the positive impact from the city of Morbi to flow to other cities such as Surendranagar as well in coming quarters. It should be noted that earlier this year the National Green Tribunal (NGT) ordered all ceramic units that operate on coal gasifiers in Morbi, Gujarat, to switch to gas or shutdown their operations.
Suresh P Manglani, CEO, Adani Gas, said that, along with the JV partner IOC, the company is authorised to distribute gas in 38 geographical areas, covering 71 districts, 68 large towns and almost 8% of Indian population in 15 states. “Currently, we are operating CGD Network in 13 locations together with our JV company IOAGPL and in coming couple of years we plan to complete the remaining cities.”
Adani Green Energy Q1 loss widens 31% to `97 crore
Adani Green Energy’s, the renewable energy unit of the Adani Group, loss increased 31% y-o-y to `97.4 crore in the quarter ended June 30 as the company paid higher interest, purchased more items to complete ongoing projects and accounted for higher depreciation of its existing assets. Revenue for the quarter went up 40% y-o-y to `661 crore as the company added more renewable projects to its portfolio.
Ebitda were `496 crore, up 13% y-o-y. Depreciation in the quarter was considered to be `247.8 crore, higher by 9% y-o-y, as the company followed the ‘written down value’ method to pre-pone cash-flows.
Had the company followed the conventional ‘straight line method’ for depreciation calculation, cash profit for the current quarter would have been at `257 crore, the management said. Interest cost during the quarter was `250 crore, up 29.3%, as it borrowed more to ramp up capacity. At the end of the quarter, Adani Green’s debt stood at `12,600 crore, of which, net debt was `10,600 crore. The company also incurred a one-time expense of `98.4 crore as it refinanced its earlier borrowings of `5,844 crore, through dollar denominated bonds and rupee term loans.
Adani Green spent around `700 crore in the quarter against its FY20 planned capex of `4,000 crore. The group has won bids for 130 MW wind and 600 MW hybrid projects in the quarter and it targets to complete 800 MW incremental capacity in FY20. As of now, the company has 2,200 MW of operational capacity while another 3,000 MW is under execution. Total projected capacity target for FY22 is 5,290 MW.