Adani total gas share price

Adani Total Gas Reports Q2 FY25 Profit Surge: Revenue Up 12%, Driven by CNG and PNG Sales

Adani Total Gas Ltd, the city gas distribution joint venture between Adani Group and Total Energies, continues its impressive growth trajectory. In Q2 FY25, the company posted a net profit of ₹178 crore, a 6% rise from ₹168 crore in the same quarter last year. This solid performance was driven by increased demand for both CNG and piped natural gas (PNG), signaling robust momentum in India’s gas sector.

Revenue Boosted by Rising Gas Sales

Adani Total Gas saw its revenue grow by 12%, reaching ₹1,315 crore for the quarter. This growth was propelled by higher gas volumes and improved sales realization. CNG volumes surged by 19% year-on-year, climbing to 162 million standard cubic meters, thanks to network expansions across multiple cities. Meanwhile, PNG sales rose 7% YoY, reaching 80 million standard cubic meters.

“With the stabilization of gas prices, PNG industrial consumption has seen an uptick. The addition of new connections in domestic and commercial segments further boosted our volumes,” the company stated. This volume growth reflects India’s ongoing energy transition towards cleaner fuel alternatives like CNG and PNG.

Operational Excellence Driving Profitability

Adani Total Gas’s operational efficiency is also playing a key role in enhancing profitability. EBITDA for the quarter rose by 8%, hitting ₹313 crore. This improvement is attributed to both the infrastructure expansion and the company’s focus on operational efficiency. The company’s overall gas volume increased by 15%, despite a 12% rise in natural gas costs.

Suresh P Manglani, CEO of Adani Total Gas Ltd, emphasized the company’s alignment with India’s energy transition goals: “We are committed to providing cleaner, greener energy solutions to all our consumers. Our business performance reflects our close alignment with India’s decarbonization efforts.”

Infrastructure Expansion and LNG Advancements

Adani Total Gas continues to expand its reach. The company’s piped gas network now serves over 9 lakh consumers, ensuring uninterrupted PNG supply. Additionally, Adani Total Gas has launched its first LNG station for the transportation sector, making strides towards a broader infrastructure network that will support India’s decarbonization goals.

In line with its ambitious infrastructure development program, Adani Total Gas secured USD 375 million in financing, the largest global funding for a city gas distribution business in India. This will further accelerate the company’s network development and help meet rising demand across the country.

Impact of APM Gas Allocation Cuts

As of October 16, 2024, Adani Total Gas has faced a 16% reduction in APM (Administered Pricing Mechanism) gas allocation, which primarily caters to auto CNG and home PNG consumers. Manglani assured consumers that the company is closely monitoring the situation: “With our diversified gas sourcing portfolio, we will adopt a calibrated pricing strategy to balance the interests of our consumers.”

Despite the potential challenges from reduced APM gas allocation, Adani Total Gas remains committed to exploring opportunities to secure competitive gas supplies, ensuring uninterrupted service for its consumers.

Expanding E-Mobility Infrastructure

Adani TotalEnergies E-mobility Limited (ATEL), a subsidiary of Adani Total Gas, is making rapid strides in the electric vehicle (EV) charging space. ATEL now operates 1,486 EV charging points across 213 cities, contributing to the growing need for EV infrastructure in India.

Looking Ahead: Challenges and Opportunities

While the reduction in APM gas allocation presents potential headwinds for profitability, Adani Total Gas is well-positioned to mitigate this impact through competitive sourcing and calibrated retail pricing. The company’s focus on expanding its infrastructure and aligning with India’s energy transition goals ensures that it will continue to play a pivotal role in the nation’s shift towards cleaner energy sources.

Conclusion:

Adani Total Gas has delivered solid financial and operational performance in Q2 FY25, despite rising gas costs and challenges in APM gas allocation. The company’s focus on expanding its infrastructure, increasing gas volumes, and aligning with India’s energy transition goals sets the stage for sustained growth. Adani total gas share price, As Adani Total Gas continues to scale its operations and embrace cleaner energy solutions, it remains a key player in India’s evolving energy landscape.

FAQs:

1.What was Adani Total Gas’s net profit in Q2 FY25?

A. Adani Total Gas posted a net profit of ₹178 crore in Q2 FY25, a 6% increase year-on-year.

2.How much did Adani Total Gas’s revenue grow in Q2 FY25?

A. The company’s revenue grew 12% to ₹1,315 crore, driven by higher CNG and PNG sales.

3.What caused the increase in CNG volumes for Adani Total Gas?

A. CNG volumes rose by 19% year-on-year due to network expansion across multiple cities.

4.How much did PNG sales increase in Q2 FY25?

A. PNG sales increased by 7% year-on-year, reaching 80 million standard cubic meters.

5.What challenges is Adani Total Gas facing with APM gas allocation?

A. Adani Total Gas is facing a 16% reduction in APM gas allocation, which could impact profitability.

6.What steps is Adani Total Gas taking to mitigate the APM gas allocation impact?

A. The company is exploring competitive gas sourcing and calibrated retail pricing strategies to mitigate the impact.

7.How much did Adani Total Gas secure in financing for infrastructure development?

A. Adani Total Gas secured USD 375 million in financing to accelerate its infrastructure development.

8.What is Adani Total Gas’s EBITDA growth for Q2 FY25?

A. Adani Total Gas’s EBITDA grew by 8%, reaching ₹313 crore, supported by volume growth and operational efficiency.

9.How many consumers are connected to Adani Total Gas’s piped gas network?

A. The company’s piped gas network now serves over 9 lakh consumers across India.

10.What advancements has Adani TotalEnergies made in the EV charging segment?

A. Adani TotalEnergies E-mobility Limited (ATEL) now operates 1,486 EV charging points across 213 cities.

Adani total gas share price

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