Adani Total Gas Q1 Results: Revenue Doubles On Higher Sales, Margin Constrained
Adani Total Gas Ltd.'s first-quarter revenue from operations more than doubled on higher sales. However, the operating margin was constrained on account of lower allocation of administered gas and higher liquefied natural gas prices.
The revenue from operations was up 113% year-on-year at Rs 1,110 crore on higher volumes and increase in sales price.
“For Q1 FY23, there was significant increase in administered gas price, re-gasified liquefied natural gas prices as well as lower allocation of APM gas during the quarter which has impacted the gas cost as well as the gross margins,” the company said in its exchange filing.
Adani Total Gas Q1 FY23 Highlights (YoY)
Operating profit or earnings before interest, taxes, depreciation and amortisation was up by 6% year-on-year to Rs 228 crore.
Operating margin stood at 20.54% compared with 41.18%.
Net profit for the first quarter was stable at Rs 138 crore.
Compressed natural gas volume increased by 61% on account of addition of new CNG stations.
Piped natural gas volume increased by 3% due to addition of new customers.
Adani Total has calibrated its retail price revisions to balance the interest of its consumers and shareholders from the impact of sudden spurt in gas purchase price, the company said.
“Given the challenges of shortfall in APM gas allocation to city gas distribution entities, the Ministry of Petroleum and Natural Gas has notified revision in making administered price allocation and pricing policy."
Currently, city gas distribution firms are provided gas allocation up to 102.5%, based on the previous quarter average consumption, instead of the earlier six-month average. This will benefit CGDs in getting better allocation of administered price gas, the company said.
APM gas will be available at unified base price, which will be notified on the first of every calendar month, it said.
“It has been a challenging scenario for the CGD industry with significantly high input gas prices, mainly due to geopolitical factors as well as supply shortages across the globe, which are likely to continue in the near future. Adani Total Gas has calibrated increase in its sales price balancing the interest of its consumers with the sudden spurt in gas prices,” said Suresh P Manglani, chief executive officer of Adani Total Gas.
Adani Total Gas has crossed 6 lakh piped natural gas consumers and added another 15 CNG stations, totalling to 349 CNG stations across locations in the first quarter of FY23.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.