Adani Total Gas Ltd—the joint venture of Adani group and TotalEnergies of France which retails CNG to automobiles and piped gas to households—on Thursday reported a 13 per cent increase in net profit as sales rose.
Net profit of Rs 148 crore in October-December compares to Rs 132 crore earnings in the same period a year back, the company said in a statement.
Revenue from operations rose to Rs 1,186 crore from Rs 932 crore. CNG sales climbed 15 per cent to 116 million standard cubic metres while piped natural gas (PNG) sales dropped 23 per cent to 70 mmscm.
The profitability rose despite a 27 per cent jump in cost of natural gas it converts into CNG and piped natural gas.
"During the quarter, ATGL has delivered a good performance with its calibrated approach despite the high input gas price scenario," said Suresh P Manglani, CEO of the company.
While the gas sector has been seeing volatility in prices due to geopolitical issues, moderation in the international gas prices in the recent weeks has been noticed.
"We are confident that this, coupled with the increase in domestic gas supply and expected increased allocation to the city gas sector, will drive increased demand across both PNG and CNG segments," he said.
"Further, in line with our strategy on acceleration and to boost eco system for piped natural gas and CNG in new geographical areas (GAs), we have already completed minimum work program for FY24 towards the steel pipeline network in 11 out of 15 of our GAs and working with a virtual pipeline in the balance GAs," he added.
Similarly, the company has also completed the CNG stations required for minimum work program for FY24 in 14 GAs out of 15 to develop an ecosystem.
