Adani Total Gas (ATGL) has reported a 15% increase in sales, with total revenue reaching Rs 1,341.26 crore. This growth was mainly driven by higher sales in the CNG (Compressed Natural Gas) segment, which saw an 18% increase in volume. Meanwhile, the PNG (Piped Natural Gas) volume rose by 5%. However, despite the sales increase, the company’s profit fell by 8% to Rs 154.59 crore.
The decline in profit is mainly due to a drop in operating profit margins, which decreased from 24.68% to 19.85%. This resulted in a 7.55% drop in operating profit to Rs 266.27 crore. The cost of raw materials increased as a percentage of sales, rising from 60.49% to 67.29%. While employee costs decreased slightly, other expenses also dropped, but other income fell by more than 45%.
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The company’s total borrowings rose to Rs 1,834.10 crore, up from Rs 1,557.25 crore the previous year. Their inventory increased, and the amount owed by customers (sundry debtors) also grew. However, cash and bank balances saw a small increase, as did investments.
On the positive side, ATGL made significant progress in its new businesses. In the e-mobility sector, the company installed 3,401 EV charging points, with 2,338 already in use. They also made strides in biomass production, launching an organic fertilizer brand and commissioning their first LNG station in Tiruppur.
For the full year, ATGL reported an 11.74% rise in total revenue to Rs 4,999.86 crore. The company’s operating profit rose by 2.67% to Rs 1,133.23 crore, although raw material costs again took a bigger share of sales. Other income saw a 30% decline, while interest payments were lower. Despite some challenges, the company continued to expand its infrastructure, adding more natural gas stations and focusing on sustainable energy solutions.
Key Business Highlights:
- The supply of APM (Administered Price Mechanism)-based natural gas for CNG was reduced, with a shift towards new sources.
- The company expanded its EV charging network to over 3,400 locations across 26 states/UTs.
Overall, while Adani Total Gas saw growth in sales, the rising costs and reduced margins impacted its bottom line, with net profit showing a slight decline over the year.
