Adani Total Gas, India's largest CNG producer, posts higher Q2 profits on stable demand
Adani Total Gas, India's largest gas company, posted higher profits for the seventh consecutive quarter on Thursday. This was aided in part by increased sales of compressed natural gas (CNG), as the government pushes for more gas-powered vehicles.
The company, which is part of the Adani conglomerate that specializes in ports-to-power, reported a 7.5% increase in its consolidated profits to 1,87 billion rupees (US$22.24million) for the three-month period ended September 30.
CNG demand in India is increasing as the government aims to reduce vehicular pollution while making cleaner energy more available. The government aims to set up 20,000 CNG stations before the end of this decade.
Adani Total Gas has benefited from this in the last seven quarters.
The latest quarter saw a 20% increase in CNG sales volume, which accounts for 67% total sales. This was boosted by 18 new stations added across the country. The company has 577 CNG outlets.
The company received its first financing worth $375 Million last month to expand its distribution network in 13 states.
The volume of sales in the segment that is second largest, piped natural gases (PNG), rose by 9%, to 157 standard cubic meters per day.
The total revenue generated by the company increased from 11,79 billion rupees to 13,18 billion rupees in just one year. $1 = 84,4700 Indian Rupees (Reporting and editing by Savio d'Souza in Bengaluru)
(source: Reuters)
