Adani Total Gas Q1 Results: Consolidated Net Profit Rises 9% On Higher CNG Sales

The city gas joint venture of Adani Group and French energy giant TotalEnergies reported a consolidated net profit of Rs 150 crore for the June quarter of the financial year 2023-24 (Q1 FY24).

Adani Total Gas on Tuesday reported a 9 per cent increase in first-quarter profit on, driven by higher sales of compressed natural gas (CNG). The city gas joint venture of Adani Group and French energy giant TotalEnergies reported a consolidated net profit of Rs 150 crore for the June quarter of the financial year 2023-24 (Q1 FY24). Consolidated revenue from operations rose marginally by 2.3 per cent year-on-year to Rs 1,135 crore. 

Adani Group firm saw an 18 per cent rise in CNG sales compared to the previous year, mainly due to the addition of new stations. During the first quarter of FY24, the number of CNG stations increased to 467, with 7 new stations added, while the total number of PNG (piped natural gas) home connections reached 7.28 lakh, including 23,928 new homes.

The company also expanded its industrial and commercial connections to 7,615, with 180 new consumers. In addition, they completed approximately 11,124 Inch Km of Steel Pipeline.

Adani Total Gas reported that 141 EV charging points have been commissioned at 40 locations. Under bio business, it is building one of India's largest biogas plants in Uttar Pradesh, with phase 1 likely to be commissioned in the fourth quarter of the current fiscal, the company said. 

"In the beginning of the quarter effective April 2023, the city gas industry saw key support from the government of India notifying the stability of APM prices with floor and cap which helped Adani Total Gas Ltd (ATGL) reduce the prices of piped natural gas (PNG) and CNG making it more affordable for end consumers to opt for cleaner fuel as their preferred choice," said chief executive Suresh P Manglani.

He said despite challenges emerging from softening of alternate fuels, the firm achieved excellent physical and financial results with a significant increase in infrastructure reach, augmentation of volume, and highest-ever EBIDTA.

"With the continued constructive policy support to CGD industry coming from the government, we are confident the further growth in infra numbers and volume shall gain momentum in spreading CGD network across all our 33 Geographical Areas," he said.

The company is increasing its footprint in the core city gas distribution (CGD) business and beyond natural gas through setting up EV charging stations, converting waste to compressed biogas (CBG) and exploring setting up LNG stations for long haul heavy vehicles, offering a wider range of sustainable energy solutions to consumers, he added.