Adani Total Gas Q3 results: Profit drops 19% to Rs 142 cr, revenue up 13%

Adani Total Gas Q3 results: The energy transition company attributed this decline to higher gas costs, which affected profitability despite growth in operational volumes

Adani Total Gas on Monday reported a 19.4 per cent drop in consolidated net profit to Rs 142.38 crore for the third quarter (Q3) of the financial year 2024-25 (FY25) from Rs 176.64 crore reported during the same period last year. The decline was attributed to higher gas costs, which affected profitability despite growth in operational volumes.

 

Sequentially, the energy transition company saw a 23 per cent drop in consolidated net profit from Rs 185.6 crore.

 

Consolidated revenue from operations, however, rose by 12.6 per cent to Rs 1,400.88 for the quarter ending on December 31, 2024, compared to Rs 1,244 crore reported in the year-ago period. Sequentially, revenue went up by 6.3 per cent from Rs 1,318.37 crore. 

Adani Total Gas adopted a "balanced approach" in passing on increased gas costs to consumers to ensure volume growth remained unaffected. The replacement of administered pricing mechanism (APM) gas with alternative sources led to a rise in gas costs, impacting earnings, the company said in an exchange filing.

 

 

ATGL: CNG, PNG sale volumes

ATGL achieved a 15 per cent year-on-year increase in combined compressed natural gas (CNG) and piped natural gas (PNG) sales volumes, totalling 257 million standard cubic metres (MMSCM) in Q3 FY25. 

 

The company’s CNG network expanded to 605 stations across 34 geographical areas (GAs), while piped gas household supplies increased to 922,000 homes. Additionally, ATGL added 167 new industrial and commercial connections, taking the total to 8,913 connections.

 

During the quarter, the company completed a cumulative 13,082-inch km of steel pipeline network, further strengthening its infrastructure for gas distribution.

 

The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 10 per cent year-on-year to Rs 272 crore, primarily due to higher gas procurement costs. ATGL stated that the shortfall in APM-based gas allocation for the CNG (transport) segment - 47 per cent during the quarter - was met through alternative supplies, including new well gas pricing mechanisms and purchases via the Indian Gas Exchange (IGX).

 

Commenting on the Q3FY25 results, Suresh P Manglani, ED & CEO of ATGL, said,  “We ensured uninterrupted gas supply for our consumers by sourcing alternative supplies. Our strategy of balancing affordability for consumers while maintaining profitability is evident in our operational growth. We are committed to expanding our PNG and CNG infrastructure across our 34 GAs, including Jalandhar in Punjab.”

 

Looking ahead, the company noted a positive development with APM gas allocation for the CNG (transport) segment increasing from 37 per cent to 51 per cent as of January 16, 2025. This adjustment is expected to improve the company’s financial performance in the next quarter.

 

Shares of Adani Total Gas were trading at Rs 622 on the BSE a 2:45 pm, down more than 3 per cent after the Q3FY25 financial results were released.