Adani Total Gas second quarter profit up 17% on higher gas sales

Adani Total Gas Ltd, the city gas joint venture of Adani Group and TotalEnergies of France, on Thursday reported 17 per cent rise in the September quarter net profit on the back of rise in gas sales volumes.

Net profit in July-September at Rs 159 crore is compared with Rs 136 crore profit in the same period a year back, the company said in a statement.

With economic activity picking up after a devastating pandemic, CNG sales rose 54 per cent to 91 million cubic meters in the second quarter of the current fiscal year. Piped gas supplies rose 17 per cent to 84 mmscm.

Combined CNG and piped natural gas volume was up 33 per cent at 175 mmscm. The firm exited the quarter with a sale volume of 2.09 million standard cubic meters per day as compared to 1.79 mmscmd at the end of first quarter.

Revenue from operations was up 56 per cent at Rs 687 crore.

The company said it commissioned 20 new CNG dispensing stations, taking the total network strength to 244. It added 18,659 new connections to help cross the 5 lakh mark for piped natural gas connections.

Commenting on the result, Gautam Adani, Chairman, Adani Group said, "I have very little doubt that gas will continue to play an increasingly important role in India's energy mix. The ability to distribute gas across the nation is an essential benefit that the Adani Group and TotalEnergies will bring to the people."

Stating that he is excited about the possibilities as the firm moves deeper into Tier 2 and Tier 3 cities, he said gas is also a fuel that can have a significant impact on how rural India will live in the future.

"We are committed to becoming a leader in this sector," he said.

Chief executive Suresh P Manglani said the excellent performance in Q2 was despite significant volatility in international gas prices and Covid-related challenges on the ground being faced in rolling out the infrastructure development.

"ATGL executed, during the quarter, a joint venture agreement with 50 per cent shareholding for setting up of manufacturing facility for mechanical and smart gas meters under Atmanirbhar Bharat initiative.

"Further, ATGL also has signed a definitive agreement for exclusive collaboration for setting up a bio-conversion plant in Barsana having India's largest cow shelter with around 60,000 cows in a single location," he added.