Adani Total Gas Advances with Outstanding Development and Growth
Newzdaddy Business Updates
Adani Total Gas Ltd (ATGL), India’s leading City Gas Distribution (CGD) company, has reported impressive operational and financial results for the first quarter of the fiscal year 2025 (Q1 FY25). The company has achieved significant growth in several key areas, demonstrating its commitment to expanding its network and services while maintaining strong financial performance.
Expansion of CNG Network
One of the highlights of ATGL’s Q1 FY25 results is the expansion of its Compressed Natural Gas (CNG) network. The company has increased the number of CNG stations to 559, adding 12 new stations during the quarter. This expansion is part of ATGL’s strategy to enhance the accessibility and availability of CNG for consumers across various regions.
Growth in PNG Connections
In addition to expanding its CNG network, ATGL has also made significant progress in increasing the number of Piped Natural Gas (PNG) connections. The company has added 38,165 new PNG household connections, bringing the total to 8.58 lakh homes. This growth reflects the increasing demand for clean and efficient energy solutions among residential consumers.
Industrial and Commercial Connections
ATGL continues to strengthen its presence in the industrial and commercial sectors. During Q1 FY25, the company added 211 new industrial and commercial consumers, bringing the total number of connections to 8,542. This expansion highlights ATGL’s efforts to support the energy needs of businesses and industries, contributing to their operational efficiency and sustainability.
Infrastructure Development
To support its expanding network, ATGL has completed approximately 12,244 Inch Km of steel pipeline during the quarter. This infrastructure development is crucial for ensuring a reliable and robust gas distribution network, enabling the company to meet the growing demand for natural gas across its service areas.
Impressive Volume Growth
ATGL has reported a combined CNG and PNG volume of 230 million standard cubic meters (MMSCM) for Q1 FY25, representing a 17% increase year-over-year (Y-o-Y). This volume growth is driven by the company’s ongoing efforts to expand its network and enhance its service offerings.
Financial Performance
The company’s financial performance in Q1 FY25 has been equally impressive. Revenue from operations increased by 9% Y-o-Y to INR 1,237 crore. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 21% Y-o-Y to INR 308 crore, while Profit After Tax (PAT) increased by 20% Y-o-Y to INR 177 crore. These results reflect ATGL’s ability to manage costs effectively and capitalize on the growing demand for natural gas.
Consolidated Financial Highlights
On a consolidated basis, ATGL reported a PAT of INR 172 crore for Q1 FY25, marking a 14% increase Y-o-Y. The company’s consolidated results include the performance of its joint venture, Indian Oil-Adani Gas Pvt. Ltd. (IOAGPL), which has also shown strong growth and expansion.
Pan India Footprint
ATGL’s pan-India footprint continues to grow, with the company and its joint venture now operating a network of 927 CNG stations, having added 24 new stations during the quarter. The total number of PNG households served by ATGL and IOAGPL has reached 10.2 lakh, with 0.44 lakh new connections added in Q1 FY25.
Key Business Updates
ATGL has received regulatory approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the transfer of the Letter of Authorization for the Jalandhar Geographical Area (GA) in Punjab. This development presents a significant growth opportunity for the company, as Jalandhar GA is expected to generate high volumes of gas consumption.
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Expansion in E-Mobility
Adani TotalEnergies E-mobility Limited (ATEL), a subsidiary of ATGL, has made significant strides in the electric vehicle (EV) charging space. The company has commissioned 1,212 EV charging points across 15 states and is in the process of constructing an additional 740+ charging points in collaboration with various stakeholders, including EV fleet companies, government authorities, and tourism departments.
Operational Highlights
Sales Volume: ATGL’s sales volume for Q1 FY25 reached 230 MMSCM, a 17% increase Y-o-Y. The volume growth is attributed to the expansion of the CNG network and the addition of new PNG connections.
CNG Sales: CNG sales for the quarter stood at 153 MMSCM, marking a 20% increase Y-o-Y. This growth is driven by the company’s efforts to expand its CNG network and attract more consumers to switch to CNG.
PNG Sales: PNG sales reached 77 MMSCM, an 11% increase Y-o-Y. The increase in PNG sales is due to the optimization of gas prices and the addition of new connections in the domestic and commercial segments.
Financial Highlights
Revenue from Operations: ATGL reported revenue from operations of INR 1,237 crore for Q1 FY25, a 9% increase Y-o-Y. The increase in revenue is driven by the growth in sales volume and the expansion of the company’s network.
Cost of Natural Gas: The cost of natural gas for the quarter was INR 804 crore, a 1% increase Y-o-Y. ATGL has managed to keep the cost of natural gas relatively stable, contributing to its strong financial performance.
Gross Profit: The company reported a gross profit of INR 434 crore, a 27% increase Y-o-Y. This growth in gross profit reflects ATGL’s ability to manage costs effectively and improve its operational efficiency.
EBITDA: EBITDA for Q1 FY25 was INR 308 crore, a 21% increase Y-o-Y. The growth in EBITDA is driven by higher sales volume and effective cost management.
Profit Before Tax (PBT): ATGL reported a PBT of INR 237 crore for the quarter, a 19% increase Y-o-Y. The growth in PBT is a result of the company’s strong operational performance and effective financial management.
Profit After Tax (PAT): PAT for Q1 FY25 was INR 177 crore, a 20% increase Y-o-Y. The increase in PAT reflects the company’s ability to generate strong financial returns from its operations.
Credit Rating Upgrade
During the quarter, ATGL’s credit rating was upgraded to “ICRA AA” Stable from “ICRA AA-” Stable. This upgrade reflects the company’s strong financial performance and its ability to manage risks effectively.
Key ESG Highlights
ATGL is committed to sustainability and has made significant progress in its environmental, social, and governance (ESG) initiatives. The company has facilitated rainwater harvesting at four sites and aims to become water-neutral by 2030. Additionally, ATGL has installed an additional 34 kW of solar capacity during the quarter, bringing the total installed capacity to 934 kW. The company has also maintained 100% of its light commercial vehicles (520 units) on CNG, contributing to lower emissions and improved air quality.
Commitment to Zero Waste
ATGL is in the process of completing the final certification audit for Zero Waste to Landfill certification for five sites. This certification reflects the company’s commitment to reducing waste and promoting sustainable practices across its operations.
Future Outlook
Looking ahead, ATGL remains focused on expanding its CGD infrastructure and deepening its penetration across multiple geographical areas. The company is also committed to promoting sustainable energy solutions, including E-mobility, LNG, and biomass, as part of its broader strategy to support India’s energy transition.
Adani Total Gas Ltd’s strong performance in Q1 FY25 demonstrates its ability to deliver robust operational and financial results while expanding its network and services. The company’s commitment to sustainability and its focus on innovative energy solutions position it well for continued growth and success in the future. As ATGL continues to invest in its infrastructure and expand its footprint, it remains dedicated to providing reliable and efficient energy solutions to consumers across India.
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