CNG sales growth drives Adani Total Gas Q3 net up 12%

City gas distribution player Adani Total Gas Limited (ATGL) reported standalone net profit of ₹148 crore for the quarter ended December 31, 2022, up 12 per cent from ₹132 crore in the corresponding quarter last year.

Revenues from operations for the quarter stood at ₹1,185 crore, up 27 per cent against ₹932 crore in the same quarter last year. Total expenses increased 30 per cent to ₹993 crore (₹763 crore).

Standalone EBITDA increased 13 per cent to ₹238 crore (₹211 crore).

On a consolidated basis, the company’s net profit stood at ₹150 crore , up 17 per cent from ₹128 crore in the same quarter last year. Revenue from operations stood at ₹1,185 crore ( ₹932 crore), up 27 per cent.

“During the quarter, ATGL has delivered a good performance with its calibrated approach despite the high input gas price scenario. While gas sector has been seeing volatility in prices due to geopolitical issues, we have seen a moderation in the international gas prices in the recent weeks. We are confident that this, coupled with the increase in domestic gas supply and expected increased allocation to the CGD sector, will drive increased demand across both PNG and CNG segments,” said Suresh P Manglani, CEO of Adani Total Gas.

ATGL has reported total sales volume of 186 mmscmd (million metric standard cubic meter) for the quarter, which was lower by 3 per cent from 192 mmscmd recorded for the same quarter last year. The reduction was observed in Piped Natural Gas (PNG) segment, where sales volumes dipped to 70 mmscmd for the quarter (91 mmscmd). The compressed natural gas (CNG) sales grew 15 per cent to 116 mmscmd from 101 mmscmd.

PNG volume

The company attributed the dip in PNG volume to lesser offtake of gas largely by Industrial consumers owing to high prices resulting from higher gas cost. The CNG volumes, on the other hand, recorded improvement on the back of network expansion of CNG stations.

The revenues increased due to higher volume coupled with increase in sales price. In a statement ATGL said, “the cost of gas increased by 98 per cent majorly on account of replacement of APM price with UBP price for CNG and Domestic PNG. However UBP price gas shortfall was reduced and there was also increase in R-LNG price which is procured for Industrial and Commercial segment.”

The company further stated that in spite of high gas prices, ATGL had maintained balanced pricing strategy. On the debt position, the company has a debt-to-equity ratio of 0.4x. The net debt-to-EBITDA (annualised) is at 0.9X, it said.


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