Mumbai: In a dynamic energy sector, where demand and regulatory complexities shape the market landscape, Adani Total Gas Limited (ATGL) has once again demonstrated robust financial performance. The unaudited financial results for the quarter and half year ending 30 September 2024, present a strong case for the company’s operational resilience and adaptability. While the industry grapples with fluctuating input costs, ATGL continues to report steady growth, backed by its strategic expansions and prudent financial management.
ATGL’s consolidated revenue from operations for Q2 FY2025 reached Rs 1,318.37 crore, marking a notable increase from Rs 1,178.77 crore in the same quarter last year. This represents a solid 11.8 per cent year-on-year (YoY) growth, driven by rising urban demand for natural gas and the company’s ongoing geographical expansion. The first half (H1) of FY2025 closed at Rs 2,557.43 crore, reflecting a healthy 10.5 per cent rise compared to Rs 2,314.12 crore in H1 FY2024.
Complementing its operational revenues, the company accrued Rs 6.63 crore in other income during Q2, slightly lower than the Rs 9.21 crore recorded in Q2 FY2024, but sufficient to sustain its overall income growth. The company’s total income for H1 FY2025 stood at Rs 2,573.08 crore, showcasing consistent performance despite market volatility.
The cost of natural gas and traded items saw a significant uptick, reaching Rs 772.97 crore in Q2 FY2025, reflecting heightened input costs. This 11.7 per cent rise from last year’s Rs 691.61 crore is attributable to rising global commodity prices and supply chain pressures. Despite this, the company’s effective inventory management helped minimise losses, with inventories shrinking by Rs 1.24 crore in Q2.
Additionally, excise duty expenses grew by 19.9 per cent YoY to Rs 99.72 crore, a reflection of increased regulatory costs tied to higher production. Employee benefit expenses, however, were managed with precision, as the company reduced personnel-related costs to Rs 13.98 crore from Rs 16.62 crore in Q2 FY2024.
One standout metric was the reduction in finance costs, from Rs 27.28 crore in Q2 FY2024 to Rs 23.01 crore in the current quarter, highlighting improved debt servicing and lower interest outflows.
ATGL also recorded a profit before tax (PBT) of Rs 247.37 crore in Q2 FY2025, a modest 7.6 per cent increase compared to Rs 229.90 crore in the previous year’s corresponding quarter. The first half of the year concluded with PBT of Rs 479.10 crore, representing a 11.1 per cent growth YoY.
Net profit for Q2 stood at Rs 185.60 crore, up from Rs 172.68 crore in Q2 FY2024. This was primarily due to effective cost controls and improved revenue streams. In the first half, profits reached Rs 357.44 crore, a commendable 10.7 per cent rise from the Rs 322.90 crore achieved in H1 FY2024. Earnings per share (EPS) saw a corresponding increase to Rs 1.69 in Q2, slightly above last year’s Rs 1.57.
The company’s total comprehensive income for H1 FY2025 stood at Rs 359.03 crore, reflecting the net impact of operational profits and minor comprehensive income changes from defined benefit plan adjustments.
On the balance sheet front, ATGL reported total assets of Rs 6,842.45 crore as of 30 September 2024, a 3.8 per cent increase from Rs 6,591.86 crore as of 31 March 2024. The company’s equity also strengthened, rising to Rs 3,910.73 crore, up from Rs 3,580.32 crore. This increase was supported by retained earnings and capital appreciation, which are likely to enhance long-term shareholder value.
ATGL’s expansion into new geographical areas continues to be a key growth driver. The company’s acquisition of key assets in Ludhiana and Jalandhar, alongside its strategic ventures with Indian Oil-Adani Gas Private Limited, positions it well for future market leadership. Additionally, its diversification into biomass and e-mobility solutions underpins a forward-looking approach to energy transitions in India.
“ATGL has reported healthy operational and financial performance during the quarter. Our business is closely aligned with India’s energy transition goals which we are delivering by providing cleaner and greener energy solutions to all our consumers. We now reach over nine lakh consumers through our piped gas network supplying uninterrupted piped natural gas. We have commissioned our first LNG station for the transportation segment and are progressing towards covering key highway networks aiding India’s decarbonisation march. Following the recent reduction in APM gas allocation, which caters to auto CNG and home PNG consumers, we are closely monitoring the situation and given our diversified gas sourcing portfolio, we will ensure a calibrated pricing approach to balance the interest of our consumers” said ATGL, CEO & ED, Suresh P Manglani.
As the energy landscape evolves, ATGL’s commitment to maintaining operational efficiency, despite external challenges, will be pivotal. Investors and stakeholders can expect the company to maintain steady growth trajectories, driven by a balanced focus on expanding its market reach and optimising its financial strategies.