Adani Total Gas Q2 Results: How Share Price Of Adani's CNG, LPG Supplier Reacted To Its Earnings?

Adani Group-backed CNG, LPG, and PNG supplier, Adani Total Gas gained as much as 1% in the opening bell of Wednesday after the company delivered its financial results for the September quarter of FY24. However, the stock pulled back and is currently traded on a flat note.

In the opening bell, Adani Total Gas shares rallied by 1% to touch an intraday high of Rs 570.65 apiece on BSE. The stock opened at Rs 570.10 apiece compared to its previous close of Rs 564.80 apiece.

However, at the time of writing, Adani Total Gas shares traded flat at Rs 564.90 apiece on BSE with an m-cap of over Rs 62,128 crore.

The performance of Adani Total Gas' share price has been broadly volatile to its Q2 results.

Adani Total Q2 Results:

In Q2FY24, the company earned a consolidated net profit of Rs 173 crore, higher than Rs 160 crore in Q2FY23 and Rs 150 crore in Q1FY24. Consolidated revenue from operations stood at Rs 1,179 crore, however, marginally lower from revenue of Rs 1,190 crore in Q2FY23 but up from Rs 1,135 crore in Q1 of FY24.

In the first six-monthly period of FY24, Adani Total Gas registered the following pan-India footprint:

- CNG Stations network of 785, added 48 New CNG Stations

-CNG Volume increased by 19% Y-o-Y on account of the reduction in CNG prices along with network expansion of CNG stations.

- Total PNG home at 9.04 lakh, added 59,017 new homes

- PNG Volume has decreased by 5% Y-o-Y due to lower offtake by industrial consumers due to lower alternative fuel prices

- Industrial and commercial connections increased to 8,502 adding 481 new consumers

- Completed ~ 20,135 Inch Km of Steel Pipeline

- 221 EV charging points have been commissioned at 64 locations

- ATEL partners with various players for developing and installing EV charging facilities at various locations across India

- ATGL has won the tender conducted by Ahmedabad Municipal Corporation to Design Build Finance and operate 500 TPD Municipal Solid Waste (MSW) based Bio CBG plant
in Ahmedabad

- ATBL is building one of India's largest CBG plants in Barsana, Uttar Pradesh. The work is in full swing and now the company has commenced the sourcing of required feedstock for the plant.

Suresh P Manglani, ED & CEO of Adani Total Gas said, "ATGL has shown continuance of all-round strong performance in our core CGD business. The volumes have increased by 9% during the first half year of this financial year resulting in an increase of EBITDA by 17% to INR 545 Crs. The company is continuing its focus on building PNG
and CNG infrastructure across all its Geographical Areas to extend easy access to PNG and CNG giving a boost to the adaptation of natural gas as a fuel of their choice by the large numbers of PNG and CNG consumers."

Manglani added, that Adani Total Gas has also made significant progress in e-mobility and biomass businesses. In the e-mobility business, charging points have now increased to 221 charging points across 64 locations and it soon intends to reach 3000 charging points. In the biomass business, the company has won 500 Tons Per Day (TPD) Municipal Solid Waste (MSW) based biogas project in Ahmedabad in this quarter and it plans to continue to explore many such opportunities across India.

Looking ahead, Manglani said, "We are striving to commission phase 1 of our Barsana Compressed Bio Gas (CBG) plant in this financial year. With a consumer-centric approach along with our strategic preparedness to offer a wider range of sustainable energy solutions to all our consumers, I firmly believe in ATGL's readiness for a promising future".

Given its gas distribution, ATGL is authorised in 33 Geographical Areas and plays a significant role in the nation's efforts to enhance the share of natural gas in its energy mix. Of the 52 GAs, 33 are owned by ATGL and the balance 19 GAs are owned by Indian Oil-Adani Gas Private Limited (IOAGPL) - a 50:50 joint venture between Adani Total Gas Limited and Indian Oil Corporation Limited.

Further, ATGL has formed 2 wholly owned subsidiaries namely Adani TotalEnergies E-Mobility Ltd (ATEL) and Adani TotalEnergies Biomass Ltd (ATBL) for its E-Mobility and Biomass Business respectively.