Adani Total Gas Ltd, the city gas joint venture between the Adani Group and French energy giant TotalEnergies, has reported a strong financial performance for the January-March quarter of 2023. The company’s consolidated net profit for the quarter was INR 97.91 crore, a 21% increase compared to the same period a year ago when it reported net earnings of INR 81.09 crore. The impressive results were reported in the company’s stock exchange filing.
Adani Total Gas Ltd retails compressed natural gas (CNG) to automobiles and piped natural gas (PNG) to household kitchens as well as industries. The company’s sales volume rose 2% to 193 million standard cubic meters, driven by a 2.6% increase in the volume of natural gas sold to the industrial and commercial sectors.
The company now operates 460 CNG stations, which include 126 new outlets that were added during the reporting period. Total piped cooking gas (PNG) connections increased to 7.04 lakh, while industrial and commercial connections rose to 7,435. The growth in PNG and CNG connections can be attributed to the company’s focus on expanding its physical infrastructure across India.
The company has been investing heavily in creating a natural gas ecosystem in the areas where it operates, which has contributed to impressive financial results. The firm commissioned 104 electric vehicles (EV) charging points at 26 locations across India and started its first compressed bio-gas (CBG) station at Varanasi, Uttar Pradesh. In the next 12-18 months, Adani Total Gas Ltd is expected to create over 3,000 EV charging points and build one of India’s largest biogas plants in Uttar Pradesh, where work is currently underway.
Suresh P Manglani, Executive Director & CEO of Adani Total Gas Ltd, attributed the company’s strong financial performance to its fast-track development of steel pipelines and CNG stations, which have helped in creating a natural gas ecosystem in the areas where the company operates. Manglani added that the company’s efforts to provide wider energy offerings to consumers, such as e-mobility and biogas, are expected to drive growth going forward.
The company has welcomed the government’s decision to impose a ceiling price on domestically produced gas, which companies like Adani Total Gas Ltd source and turn into CNG for sale to automobiles and pipe to household kitchens (PNG). The ceiling price has led to a drop in gas costs for city gas companies, which Adani Total Gas Ltd has passed on to end consumers. The company believes that the move, coupled with the softening of R-LNG prices, will drive increased demand across both PNG and CNG segments, and Adani Total Gas Ltd will play a pivotal role in achieving the government’s vision of moving towards a gas-based economy.
In summary, Adani Total Gas Ltd has reported a robust financial performance for the January-March quarter of 2023, driven by strong sales volumes, expansion of physical infrastructure, and investments in wider energy offerings. The company’s focus on creating a natural gas ecosystem and passing on the benefits of the government’s decision to impose a ceiling price on domestically produced gas to end consumers has contributed to the company’s success. Going forward, Adani Total Gas Ltd is well-positioned to leverage its strengths and capitalize on growth opportunities in India’s natural gas sector.