Adani Gas profit declines 42% in June quarter as lockdown impacts sales

Adani Gas Ltd, the city gas utility of Adani Group, on Wednesday reported a 42 per cent drop in June quarter net profit as sales volumes got impacted because of the coronavirus lockdown.

Net profit of Rs 46 crore in April-June compared with Rs 79 crore net profit a year back, the company said in a statement.

"With continued lockdown of 69 days in Q1 FY21 the company witnessed volume impact of 53 per cent as compared to Q1 FY20," it said.

Gas sales volumes dropped to 64 million standard cubic meters in the first quarter of fiscal year beginning April 2020, from 137 mmscm in the same period a year back.

CNG sales fell 66 per cent to 24 mmscm while sale of piped natural gas to household kitchens was down 40 per cent at 40 mmscm.

"There was a progressive rebound in volumes as compared to the pre-Covid situation and exit volume as on June 30, 2020, had already reached 1.25 million standard cubic meters per day as compared to 1.60 mmscmd for the month of March 2020," the statement said.

The operational performance of the business continues to be recovering in a phased manner towards the pre-Covid level, it said.

Revenue fell 57 per cent to Rs 207 crore while EBITDA (earnings before interest, tax, depreciation and amortisation) was down 41 per cent at Rs 86 crore.

Volume in June was at 0.71 mmscmd compared to 0.35 mmscmd in April.

Adani Group Chairman Gautam Adani said, "Adani Gas Ltd has delivered a good performance even amidst the global pandemic. Commitment to sustainability is the cornerstone of the growth which AGL is set to chart."

"Our strategy is designed to deliver growth with goodness while contributing to the larger objective of nation-building. In line with the Government's policy we are committed to contributing to the nation's vision of providing a safer, cleaner and greener energy," he added.

The firm maintained an uninterrupted gas supply (24X7) even during complete lockdown for two-thirds of the quarter and partial resumption during the balance period of the quarter with adoption to the rapidly changing environment.

Adani Gas said piped natural gas home connections increased to 4.38 lakh (979 new connections in Q1 FY21). Commercial and industrial connections increased to 4,448.

Suresh Manglani, CEO of Adani Gas said, "We are watchful of the ongoing pandemic situation for COVID-19. As a responsible natural gas service provider, Adani Gas Ltd has ensured continuous supply of CNG and PNG, uninterrupted and prompt customer care service during these tough times."

The company, he said, has delivered a sustainable performance in Q1 FY21 despite the impact of COVID-19 on business.

"The company is continuously and closely monitoring the developments and is actively working to moderate the impact of this unprecedented situation. We have resumed project and operational activities in phased manner which were ceased in March on account of lockdown, to meet our commitments towards the development of city gas distribution in the new geographical areas (GAs) and contribute towards the nation-building and providing clean energy for all," he added.

Adani Gas retails CNG to automobiles and piped natural gas to households in Gujarat, Rajasthan, Haryana, and Utter Pradesh.

Its operations are spread over 19 geographical areas.