Adani Total Gas Q2 Results: Net Profit Surges 7.5% To Rs 187 Crore
Demand for CNG in India is rising as the government aims to reduce pollution and expand access to cleaner energy sources. It has set a target to establish 20,000 CNG stations by the decade's end
Adani Total Gas reported a higher profit for the seventh consecutive quarter on Thursday, driven by increased compressed natural gas (CNG) sales in response to the government's push for more gas-powered vehicles.
As part of the diversified Adani conglomerate, the company announced a consolidated profit of Rs 187 crore ($22.24 million) for the three months ending September 30, marking a 7.5 per cent increase.
Demand for CNG in India is rising as the government aims to reduce vehicular pollution and expand access to cleaner energy sources. It has set a target to establish 20,000 CNG stations by the decade's end.
This trend has significantly benefited Adani Total Gas over the past seven quarters. In the latest quarter, CNG sales volumes, which make up 67 per cent of total sales, surged by 20 per cent, thanks in part to the addition of 18 new stations nationwide. The company now operates 577 CNG stations.
Additionally, last month, Adani Total Gas secured its first financing, amounting to $375 million, to support the expansion of its distribution network across 13 states. Sales volume in the piped natural gas (PNG) segment, the company’s second-largest, rose by 9 per cent to reach 157 million standard cubic meters of gas per day.
Total revenue from operations climbed to Rs 1,318 crore, up from Rs 1,179 crore the previous year.
Regarding the company’s performance, Suresh P Manglani, CEO and ED of ATGL, said, “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 decarbonisation march.”
“Following the recent reduction in APM gas allocation, which caters to auto CNG and home PNG consumers, we are closely monitoring the situation, and given our diversified gas sourcing portfolio, we will ensure a calibrated pricing approach to balance the interest of our consumers,” he added.
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