Adani Gas net profit drops 42% to Rs 46 crore in Q1

In the beginning of the quarter, Adani Gas had reduced the selling prices of PNG and CNG for all its domestic consumers in Gujarat, Haryana and Uttar Pradesh. (Representative image)

Adani Gas on Wednesday reported a 41.6% year-on-year (Y-o-Y) drop in net profit to Rs 46.3 crore for the April-June quarter of FY21, as natural gas demand dropped significantly in the period of Covid-19-induced lockdown. The sales volume for the June quarter fell 53% YoY to 64 million metric standard cubic meters per day (mmscmd) as piped natural gas (PNG) demand fell 40% and compressed natural gas (CNG) supply dropped 66%.

Earnings before interest, taxes, depreciation, and amortisation (ebitda) for the June quarter fell 41.1% YoY to Rs 86 crore, while ebitda margins were up 1,100 basis points to 41.5% on better realisations. Total expenses in the third quarter fell 58.5% YoY to Rs 152.4 crore as it spent only Rs 75.3 crore to buy natural gas — 72.5% lesser than a year ago.

The government had cut the price of domestic gas by a sharp 26% to $2.39 per metric million British thermal units (mmBtus), in line with the fall in global prices due to higher production and lower demand. In the beginning of the quarter, Adani Gas had reduced the selling prices of PNG and CNG for all its domestic consumers in Gujarat, Haryana and Uttar Pradesh.

“We have resumed project and operational activities in a phased manner, which were ceased in March on account of lockdown, to meet our commitments towards development of city gas distribution in the new geographical areas and contribute towards the nation building & providing clean energy for all,” Suresh Manglani, CEO of Adani Gas, said.