Adani Total Gas (ATGL) experienced a 3.8% year-on-year decrease in consolidated net profit for the quarter ended on 30 June. This decline was attributed to the sharp increase in input costs following the reduction in the supply of subsidized natural gas by the Indian government. The joint venture between the Adani Group and Total Energies SE saw a net profit of Rs 165 crore (USD 19 million) in the June quarter. Due to a decrease in the allocation of low-cost domestic gas to city gas distributors like Adani Total Gas, the company had to resort to importing more expensive gas to meet its supply needs.
Consequently, natural gas procurement costs rose by 30.6%, leading to a 27% increase in total expenses to Rs 1,288 crore during the quarter. Despite these challenges, the company witnessed a 21% growth in CNG volumes, which constitute more than half of its total sales, supported by network expansion. Additionally, the addition of three new CNG stations brought the total count to 650 as of 30 June. Sales volumes in the piped natural gas (PNG) segment also rose by 6%. Overall, revenue from operations experienced a year-on-year increase of 20.9% to Rs 1,498 crore. Despite these fluctuations, the company’s shares closed nearly unchanged at Rs 625.65 prior to the earnings announcement.
Read more from businessworld.in