Adani Total's Q3 Results: Profit Falls On Lower Volume, Higher Taxes

Adani Total Gas Ltd.’s net profit for the third quarter dropped sequentially on lower volume of sales and higher taxes. 

The consolidated net profit of the city and residential gas distributor for the third quarter dropped 6.1% year-on-year to Rs 150.19 crore, on account of lower sales volumes of compressed natural gas and piped natural gas.  

Tax expenses rose to Rs 52.67 crore, compared with Rs 48.20 crore in the previous quarter.

Adani Total Q3 FY23 Highlights (QoQ): 

• Revenue from operations declined 0.4% to Rs 1,185.5 crore, due to lower sales.

• Ebitda was up 1.6% sequentially to Rs 229.94 crore. 

• Ebitda margin was up at 19.4%, from 19% in the previous quarter. 

The company delivered robust performance with its calibrated approach despite high input gas price scenario in the third quarter, said Suresh P Manglani, chief executive of Adani Total Gas. 

“While the gas sector has been seeing volatility in prices due to geopolitical issues, we have seen a moderation in the international gas prices in the recent weeks,” he said.

“We are confident that this, coupled with the increase in domestic gas supply and expected increased allocation to the CGD sector, will drive increased demand across both PNG and CNG segments.” 

To boost its operations in other geographical areas, the company has completed minimum work programme for FY24 towards the steel pipeline network, in 11 out of 15 geographical areas awarded in the ninth and tenth round of bidding, and are working with a virtual pipeline in the balance GAs, he said. 

Similarly, the company has completed the CNG stations required for minimum work programme for FY24, in 14 geographical areas out of 15 geographical areas, for ninth and tenth round of GAs. 

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.