Adani Total Gas Q3 results: Net profit falls 19% on lower gas allocation

City-gas distributor Adani Total Gas reported a 19.4 per cent dip in its consolidated net profit (attributable to the owners of the company) for the October-December 2024 quarter (Q3FY25) due to lower allocation of cheaper gas.

 

For the quarter under review, the company reported a net profit of Rs 142.4 crore, despite an 11.9 per cent rise in net sales to Rs 1,294.5 crore, compared to the previous year’s corresponding quarter. Higher net sales were supported by a 15 per cent rise in combined compressed natural gas (CNG) and piped natural gas (PNG) volumes to 257 million standard cubic metres (MMSCM), the company said.

 

In its press statement, the company said that during the quarter, the administered price mechanism (APM) allocation of natural gas was reduced, impacting profitability as the company had to bridge the shortfall with costlier purchases of natural gas to ensure uninterrupted supply of CNG to end consumers. This reduction in allocation affected the entire city-gas distribution sector. 

During the quarter, APM allocation for the CNG segment was approximately 47 per cent, with the balance being met through New Well Gas, existing contracts, and spot procurement.

 

Profit before depreciation, interest and taxation (PBDIT) for the company also dipped 10.8 per cent to Rs 272.7 crore from a year ago. Sequentially, Adani Total Gas's profit fell 23.29 per cent, while net sales rose 6.22 per cent.