Adani Gas Ltd on Tuesday reported a record net profit in the September quarter as sales returned back to pre-Covid levels quicker than anticipated, with the economy reinflating on easing of lockdown restrictions. Net profit in July-September quarter at Rs 136 crore was 13 percent higher than Rs 120 crore profit a year ago, Adani Gas CEO Suresh P Manglani told reporters during an earnings call.
The board of the company approved raising USD 400 million (about Rs 2,950 crore) in US dollar-denominated bonds to fund capital expenditure for the next two years, he said. The company, which is a joint venture of Adani Group and French energy giant Total, has planned a capex of Rs 7,000-8,000 crore in the next three years, and the debt will help meet a part of this planned capex.
The firm, which retails CNG to automobiles and piped natural gas to households and industries, has decided to change its name to Adani-Total Gas Ltd to reflect the French energy giant's participation, Manglani said. He said sales volume improved rapidly with the reopening of the economy. Industrial sales have risen above pre-COVID levels, but CNG sales are still 10 percent lower than normal, primarily because schools haven't fully reopened and public transport is not back on roads yet.
While sales were back to normal in September, volumes were lower than last year on an overall quarterly basis. The firm sold 131 million standard cubic metres (mmscm) of gas in July-September, down from 146 mmscm a year ago.
"Average volume in September was 1.59 million standard cubic metres per day (mmscmd) as compared to average volume in Q1 of 0.71 mmscmd, showing significant volume recovery trend," Manglani said, adding that September exit volume was 1.61 mmscmd.
The company's revenue was 12 percent lower at Rs 441 crore in July-September quarter. The firm, whose operations span 15 geographical areas, raised the number of CNG stations to 134 with the commissioning of 19 new CNG stations.
Piped natural gas connections to households increased by 7,704 in Q2 to 4.46 lakh.
The company's board also approved altering its main object clause of Memorandum of Association (MOA) by inserting objects to carry on the businesses of bio-gas, bio-fuel, bio-mass, electric vehicle, hydrogen manufacturing of various equipment and provision of value-added services relating to city gas business, he said.
Commenting on the quarterly result of the company, Adani Group Chairman Gautam Adani said, "Our focus has never wavered from initiatives that are aligned with the nation's agenda. A gas-based economy is beneficial not just on the sustainability front but also on several other fronts of national importance that include reduced health risk, wider and cleaner range of applications, energy efficiency, transportability as well as helping save foreign exchange given the global gas cost structures."
"I anticipate gas will be one of the key pillars that will enable India to get an energy mix that is cleaner and superior from multiple dimensions. We are committed to becoming a leader in this sector," he added.
Manglani said, "Adani Gas has reported highest ever financial performance with robust physical performance despite ongoing pandemic."
First Published: IST