Adani Total Gas reports 20% profit Jump on higher CNG sales
Indian city gas distribution (CGD) company Adani Total Gas on October 31 reported a 20% year/year jump in profit for the July-September quarter (Q2FY24) on account of higher CNG sales volume.
The company booked a standalone net profit of 1.39bn rupees ($17mn) in Q2, versus 1.39bn rupees in the same quarter last year. Its revenue came in at 11.78bn rupees in Q2, down 1% year/year.
CNG sales volume during the quarter increased by 20% year/year on account of a reduction in CNG prices along with network expansion of CNG stations. The company added 33 new CNG stations during Q2 to take the total stations it operates to 785.
Piped natural gas sales volumes in Q2 dropped 1% year/year owing to reduced offtake by industrial consumers due to lower alternative fuel prices, the company said.
With the new pricing regime coming into effect in India, CGD companies have reduced prices of PNG which is supplied to households and commercial establishments and CNG which is used by the transportation sector.
Adani Total Gas is a joint venture between Adani Group and France’s TotalEnergies. It is authorised to operate city gas network in 33 geographical areas in India. The company operates another 19 geographical areas in joint venture with state-owned Indian Oil Corporation.