Adani Total Gas Has Reported a Rise in Q3 Profit by 18%, Thanks To A Rise in CNG Sales
The Adani Group has reported an 18% rise in its third-quarter profit. This has mainly been possible because of the increase in sales of its compressed natural gas (CNG). The company distributes piped gas to the different cities of India. Its consolidated profit rose to 1.77 billion rupees, which accounts for nearly 21 million USD for the quarter ended December 31st. The profit rose from 1.5 billion rupees earlier in 2023. This is a huge increase in profit for the Adani Group. It also shows the company’s resilience in the natural gas sector. It is also among the highest profits recorded after the Adani SEBI probe.
ATGL’s rise in profit:
Adani Total Gas has repeatedly reported a higher quarterly profit since March 2023. This is because of its increased capacity to produce CNG for different households and industries. CNG production has also been streamlined because of the extraordinary infrastructure and the use of high-end technologies. Adani Total Gas, a subsidiary of the Adani Group, said that the volume of its CNG sales increased by 24%. This has been possible because of the addition of 98 new CNG stations across different parts of the country.
The city gas distribution network has been facing severe gas shortages because of the high price of liquefied natural gas (LNG) and low domestic allocation. However, with the spot prices easing out this quarter, distributors have passed on price cuts to the consumers. This has helped increase the profitability of the natural gas business. The market conditions have started to get better. The Adani Group has also acquired excellent revenue from its natural gas business.
Asian spot LNG prices normalised in 2023 from record high levels witnessed during 2022. However, the prices are still relatively high. The consolidated revenue from operations rose 5% year-on-year to 12.44 billion rupees. The Adani Group of companies lost around 150 million USD in market value during the initial months of 2023. This mainly happened because of the Adani SEBI probe. However, the company has since pared losses to around 47 billion USD. This shows the extraordinary resilience of the global conglomerate and its control over the country’s gas distribution sector.
Suresh Manglani’s Statement:
Suresh P Manglani, the CEO of Adani Total Gas Limited, mentioned that the Adani Group’s extraordinary rise in profit has been mainly because of the expansion of CNG infrastructure. The company has also sought opportunities in the e-mobility, biomass, and LNG sectors. All these initiatives have caused the Adani Group to deliver double-digit growth in volumes of 13% Y-o-Y on a 9-month basis.
The rise in volumes, coupled with efficient gas sourcing, has led to an increase in EBITDA by 20% Y-o-Y. Suresh Manglani has also mentioned that Adani Total Gas’s current priority is to provide people with easy access to natural gas through CNG and PNG. It is willing to do so by fast-tracking the infrastructure development process for natural gas in different geographical regions of India.
Adani Total Gas Limited is also seeking new opportunities in the LNG segment as a transporter fuel. It is building its first LNG retail outlet in Dahej, Gujarat, which is expected to be commissioned by July 2024. ATGL also has plans to set up an LNG station network in different locations across India. Again, this is going to help India achieve its clean energy goals. The fuel cost will also be reduced drastically.
Adani Total Gas Limited: An Overview
Since its initial days of operation, Adani Total Gas has been working on developing the city gas distribution network to supply piped natural gas to commercial, industrial, and domestic projects. The company has plans to supply compressed natural gas to the transport sector. It also has a vision to develop world-class infrastructure in the natural gas segment. This will not only enrich the lives of the people but will also contribute to nation-building. Despite the ongoing Adani SEBI probe, ATGL took up multiple initiatives that have led to direct growth in our country’s natural gas sector.
Conclusion:
As you know, natural gas is a reliable, convenient, and environmentally friendly fuel that allows consumers to enjoy convenience, safety, and fuel efficiency. With that in mind, Adani Total Gas aims to increase the use of natural gas throughout the country. By doing so, it will trigger industrial activities in the country. Our country will also start to experience massive economic growth.
