Adani Total Gas sees record Q1 results, boosts infrastructure

Adani Total Gas Ltd, India’s prime City Gas Distribution company, unveiled a promising Q1FY24 report today, spotlighting strategic growth and commendable financial results, despite notable industry challenges.
The company reported an increase in Compressed Natural Gas (CNG) stations, which has now expanded to 467, including seven new additions in the last quarter. Moreover, Piped Natural Gas (PNG) consumers experienced a surge, tallying to 7.35 lakh customers, marking a significant uptick with an addition of 23,928 new households on PNG.
Fueling this expansion, the volume experienced an 8% increase year-over-year, culminating in the highest-ever quarterly EBITDA – INR 255 Cr, a leap of 12% compared to the previous year. Industrial and commercial connections also increased, with 180 new consumers added, raising the total to 7,615. Furthermore, approximately 11,124 inch-km of steel pipeline was completed during this period. The growth also extends to the company’s joint venture, IOAGPL, which added 11 new CNG stations, and saw an increase of 27,917 new households on PNG, lifting the total PNG homes to 8.72 lakh. The JV also increased industrial & commercial connections to 8,228 with the addition of 207 new consumers, while completing ~19,732 Inch Km of steel pipeline.
Financially, the standalone revenue from operations reached INR 1,135 Cr. The EBITDA increased by 12%, resulting in a profit before tax (PBT) of INR 199 Cr, a 7% increase. The profit after tax (PAT) also saw an uptick by 7%, resulting in INR 148 Cr. Additionally, the consolidated PAT increased by 9%, bringing it to INR 150 Cr.
Apart from the core gas business, ATGL’s commitment to sustainable energy solutions led to the commissioning of 141 EV charging points across 40 locations. The company also took strides in bio-business by building one of India’s largest Biogas plants in Uttar Pradesh, set to commence operations by the fourth quarter of this financial year.
ATGL’s outstanding commitment to road safety was recognized with the FICCI Road Safety Award 2022. The award ceremony was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi.
The company’s robust Q1 results are a testament to its balanced pricing strategy and cost optimization. However, it has acknowledged the reduction in PNG volume by 6% Y-o-Y, attributed to lower off-take by consumers due to decreased alternative fuel prices. Nevertheless, ATGL remains confident in its continued growth, supported by constructive policy assistance from the government, and plans to extend its City Gas Distribution (CGD) network across all its 33 Geographical Areas.
With its commitment to customer-centric solutions, ATGL continues to broaden its reach beyond natural gas, exploring opportunities to set up LNG stations for long-haul heavy vehicles and further boosting sustainable energy alternatives.