Adani Total Gas Q4 profit rises 21% to ₹98 cr; revenue climbs 12%

Adani Total Gas, one of the country’s leading city gas distribution companies, on Tuesday reported double-digit growth in its top and bottom line for the fourth quarter ended March 31, 2023, aided by higher volume and increase in sales price. The Adani group company also declared a dividend of ₹0.25 per equity share of face value of ₹1 each fully paid up for the financial year 2022-23.

The Ahmedabad-based company, a joint venture between Adani group and TotalEnergies of France, posted a 20.7% rise in consolidated net profit at ₹97.91 crore for the quarter ended March 2023 compared with ₹81.09 crore in the corresponding quarter last fiscal. On quarter-on-quarter (QoQ), the profit dropped 34% from ₹150.19 crore in the December quarter of 2022 (Q3FY23), the company said in an exchange filing.

The consolidated revenue from operations grew 12.37% to ₹1,197.31 crore, as compared to ₹1,065.48 crore in the March quarter last year. Sequentially, the revenue rose marginally from ₹1,185.50 crore in Q3FY23.

On the operating front, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) surged 49% year-on-year (YoY) to ₹195.2 crore and margins increased to 17.5% from 13% in the March quarter of 2022.

For the full financial year 2023, the profit of the energy company, which retails CNG to automobiles and piped gas to households, stood at ₹546.49 crore, up 7.28% from ₹509.4 crore in FY22. The revenue from operations jumped 46% to ₹4,683 crore as against ₹3,206 crore in the previous fiscal. The EBITDA for FY23 increased 11% to ₹907 crore compared with ₹815 crore in the year-ago period.

On the volume front, CNG volume increased 28% YoY on account of network expansion of CNG stations, whereas PNG volume dropped 13% YoY due to lesser offtake of gas largely by Industrial consumers owing to high PNG prices resulting from higher gas cost.

During the financial year, the company added 126 new CNG stations, taking the total count to 460. Besides, it added over 1.24 lakh new homes on PNG to 7.04 lakh as of March 31, 2023. The industrial and commercial connections increased by 867 to 7,435.

 “ATGL has shown resilience and delivered a good all-round performance both on physical infrastructure and financial front despite high gas prices throughout the year. The fast-track development of steel pipeline and CNG stations has helped in creating a natural gas ecosystem in geographical areas where we are present and will now help in connecting PNG consumers going forward,” says Suresh P Manglani, Executive Director & CEO of Adani Total Gas.

Manglani further says that ATGL, through its SPVs, have forayed into E-mobility and Bio- to provide wider energy offerings to consumers. This SPVs, in next 12-18 months will be creating over 3,000 EV charging points and build one of India's largest Biogas plant in Uttar Pradesh, whose work is in full swing, he said.

As of now, the company has commissioned 104 EV charging points at 26 locations across India. It has also set up the first Compressed Bio-Gas (CBG) station at Varanasi, Uttar Pradesh.

On the government's revised domestic gas pricing guidelines, he says that the company appreciates the government of India’s decision on approving the ceiling and floor price on domestic gas, which will ensure stability in domestic gas price. “Further, ATGL has passed on the benefit to the end consumers. We are confident that this, coupled with the softening of R-LNG prices, will drive increased demand across both PNG and CNG segments and ATGL will play a pivotal role in achieving government vision in moving towards a gas-based economy,” he adds.

Following Q4 results, Adani Total Gas shares closed 1.48% higher at ₹958.65 on the BSE. Earlier today, the stock opened higher at ₹959.95 and touched intraday high and low of ₹990 and ₹937.50, during the session.