Mumbai: Adani Total Gas reported a nearly 9% increase in first-quarter profit on August 1, primarily attributed to higher sales of compressed natural gas (CNG), Reuters reported.
The company, which distributes piped gas to various cities in India, stated that consolidated profit rose to 1.50 billion rupees ($18.2 million) for the quarter ending June 30, compared to 1.38 billion rupees in the previous year.
The rise in profit was supported by an 18% increase in CNG volume compared to the previous year, driven by the addition of 11 new stations.
Adani Total Gas is a part of the Adani Group conglomerate.
Despite facing gas shortages due to higher spot liquefied gas prices and lower domestic allocations, city gas distributors, including Adani Total Gas, had passed on price hikes to customers.
However, the situation improved as the government intervened, and spot LNG prices eased, resulting in lower gas prices. In April, the Indian government lowered gas prices and set a ceiling to support industrial buyers and city gas distributors.
Adani Total Gas reported a 12% year-on-year increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to 2.55 billion rupees, thanks to effective cost optimization and maintaining a balanced price strategy, as mentioned by the company.
While the consolidated revenue from operations saw a marginal 2.3% year-on-year increase to 11.35 billion rupees, this was attributed to the company passing on the reduction in domestic gas prices to its customers.
