New Delhi: Adani-Total Gas Ltd, the city gas joint venture of Adani group and TotalEnergies of France, on Monday reported a 10 per cent drop in its fourth quarter net profit on higher cost of gas while the revenue soared 15 per cent.
Net profit of Rs 149 crore in Q4 FY25 - compared with Rs 165 crore earnings in the same period of the previous year, according to a company statement.
Revenue from operations was up 15 per cent at Rs 1,448 crore. The margins were impacted as the cost of natural gas - which is converted into CNG for sale to automobiles and piped to household kitchens for cooking - soared 27 per cent as the firm had to replace reduction in cheaper domestically produced fuel (called APM gas) with higher-priced gas.“During the quarter, APM allocation for the CNG segment was at 49 per cent (of the total requirement), the balance was met with (higher priced) new well / intervention gas, existing contracts and spot procurement,” the statement said.
For the full fiscal, net profit was almost unchanged at Rs 648 crore while revenue was up 12 per cent at Rs 5,398 crore. Cost of procuring natural gas in the full year was up 15 per cent. The company said it took a calibrated approach in passing the higher gas cost due to the replacement of APM gas with other sources while ensuring volume growth.
“Consequently, EBITDA for FY25 (April 2024 to March 2025 fiscal) has increased marginally despite lower allocation of APM gas due to volume growth,” it said. Revenue from operations rose on account of higher volume, primarily on the CNG segment.
“Besides higher volume, with lower allocation of APM gas to the CNG segment and replacement with higher price gas, the cost of natural gas rose by 15 per cent,” it said. CNG sales rose 18 per cent in the fourth quarter to 177 million standard cubic meters, and by 19 per cent to 663 mmscm in the full fiscal. Piped natural gas sales were up by 5 per cent in Q4 to 87 mmscmd and by 7 per cent in FY25 to 330 mmscm.