Adani Total Gas reports marginal rise in Q2 profit to Rs 1.60 billion
BENGALURU (Reuters) -India’s Adani Total Gas reported a marginal rise in second-quarter profit on Thursday, as the city gas distributor raised prices, but higher input costs dented its margins.
The company’s consolidated profit rose 1.3% to 1.60 billion Indian rupees ($19.30 million) in the July-September quarter, from 1.58 billion rupees a year ago.
“The city gas distribution industry continues to face a challenging scenario with significantly higher input gas prices, mainly due to geopolitical factors as well as supply shortages across the globe,” Chief Executive Suresh Manglani said in a statement.
Global gas prices have jumped this year due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine.
Revenue from operations rose 73.2% to 11.9 billion rupees at the company, a joint venture between France’s energy major Total and Adani Group, controlled by Asia’s richest person Gautam Adani.
Adani Total Gas said revenue rose due to increased volumes and higher prices, as it passed on some of the rise in input costs to customers.
The company’s compressed natural gas sales volumes rose 25%, while piped natural gas volumes fell 8% suppliers curtailed distribution to city gas companies.
In a further challenge to distributors, the government raised prices of locally produced gas from old fields by 40% to a record $8.57 per million metric British thermal units (mmBtu) from Oct. 1.
The Adani Group’s flagship Adani Enterprises will report results later in the day. Its other group companies, Adani Ports and Special Economic Zone reported strong quarterly numbers, while Adani Wilmar profit plunged on cost rise, soft rural demand. ($1 = 82.9070 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Savio D’Souza)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Comments are closed.