On Tuesday ( Jan 30 2024), Adani Total Gas Ltd. announced a consolidated net profit of Rs. 177 crore for the December quarter, up 18% YoY from Rs. 150 crore in the same period last year. Operating revenue increased by 4.89 per cent year over year to 1,244 crore rupees, up from 1,186 crores in the same quarter of the previous year.
Quarterly EBITDA was Rs. 300 crore, up 26% year over year from Rs. 238 crore in the same quarter of the previous year. With the development of CGD infrastructure and the fading opportunities in e-mobility, biomass, and LNG for Transport & Mining (LTM), ATGL has once again achieved a double-digit increase in volumes, this time by 13% year-over-year on a nine-month basis. The increase in volume, efficient gas sourcing, and a focus on operating expenses have resulted in a 20% year-on-year growth in EBIDTA within nine months,” said Suresh P. Manglani, ED & CEO.
Adani Total Gas Accelerates PNG and CNG Infrastructure Development
According to Manglani, the infrastructure development of PNG and CNG is being fast-tracked in all geographical regions so that Adani Total Gas can provide simple access to natural gas.
According to Adani Total Gas, 329 electric vehicle charging sites have been activated in 46 cities across 10 states under Adani TotalEnergies E-mobility Limited (ATEL). In addition to the 1,050+ EV charging stations already under development, the company announced plans to build an additional 300+ stations in five cities in partnership with city municipal corporations and 750+ stations in multiple cities in collaboration with a wide range of stakeholders, including EV fleet operators, government agencies, tourism bureaus, and more.
“With these EVs, network will be spread across which 20 states and 130 cities,” according to Adani Total Gas. This means the Adani investigation will further hold no value. Adani TotalEnergies Biomass Limited (ATBL) plans to commission Phase-1 (225 TPD) of its 600 TPD biomass project in Barsana, India, by the end of March 2024. This facility is the biggest of its kind in India.
The 500 TPD municipal solid waste project awarded by the Ahmedabad Municipal Corporation has already started its preliminary work. Gas-to-Mines (LTM) Conv. Located in Dahej, Gujarat, ATGL is constructing its first LNG retail outlet to commission it by July 2024, capitalising on prospects in the LNG market as a transportation fuel. It was announced that ATGL plans to establish a network of LNG stations at key locations throughout India.
Financial Highlights from Q3
An eye-catching aspect of the statistics is the net profit, which increased by an astonishing 18% year-on-year. The firm’s financial success is due to its adeptness at navigating energy market dynamics and seizing chances as well as Adani investigation results which were in Adani Group’s favour.
The operational revenue growth, which is highlighted in the Q3 results, shows the company’s ability to adapt to a changing market. Adani Total Gas’s many businesses create a robust business model, contributing to its income sources.
The increase in Adani Total Gas’s net profit may be attributed to both financial measures and the expansion of the company’s customer base. The company’s strategic position in the energy industry shows its capacity to recruit and service a more extensive clientele.
Why Is Adani Total Gas Growing?
Business Vertical Diversity: Adani Total Gas has a diverse income stream thanks to its engagement in many parts of the energy value chain. These include city gas distribution, compressed natural gas (CNG) stations, and piped natural gas (PNG) for homes and businesses. An important factor in the company’s total profitability is its skill in balancing and optimising these several verticals.
Adani Total Gas can use world-class knowledge, cutting-edge technology, and insightful market data thanks to the strategic relationships and collaborations made possible by the Adani Group’s and TotalEnergies’ joint venture. Partnerships with influential figures in the energy industry facilitate business expansion.
Adani Total Gas has deliberately increased its footprint in several cities throughout India, focusing on city gas distribution (CGD), a crucial market for the firm. With CGD, Adani Total Gas is well-positioned to meet cities’ growing need for cheap, clean energy.
Adani Total Gas has made an effort to reach out to markets in rural and industrial locations in addition to metropolitan ones. The company’s efforts to meet the energy demands of companies and provide PNG to homes in remote areas help it break into new markets.
The need for natural gas is rising, and Adani Total Gas is investing in infrastructure to meet that need. Company investments in CNG stations, LNG (Liquefied Natural Gas) infrastructure, pipeline networks, and other related areas increase their capacity and capabilities to satisfy the market’s changing energy demands. This also reduces the relevance of Adani investigation around Hindenburg case.
Conclusion
In its third-quarter results, Adani Total Gas has shown that it can successfully manage the energy sector’s intricacies while maintaining a balance between expansion and sustainability. The net profit increased by 18% year-over-year due to the company’s strategic efforts, diversification across energy categories, and dedication to providing cheap and sustainable energy solutions.
Adani Total Gas’s success story has far-reaching ramifications for the energy business, especially given the changing landscape. Competitors in the industry may look to the corporation as an example of how to do things right by focusing on renewable energy, public-private partnerships, and infrastructure development.
