Adani Total Gas

Adani Total Gas delivered a robust Q3 FY25, with revenue from operations increasing by 12% year-on-year to ₹1,397 crores. The company achieved a 15% year-on-year growth in overall volumes, driven by a 19% increase in CNG volumes to 171 MMSCM and an 8% increase in PNG volumes to 86 MMSCM. Quarter-on-quarter, volumes also rose by approximately 6%. EBITDA for the quarter stood at ₹272 crores, with PBT at ₹193 crores and PAT at ₹143 crores, reflecting effective management despite challenging gas sourcing conditions.

The company faced significant reductions in APM gas allocation during the quarter, with allocations for CNG dropping from 63% to 51% and further to 37%. To ensure continuous supply, ATGL strategically utilized existing contracts, purchased gas from the IGX spot market, and leveraged new well gas allocations. As of January 16, 2025, APM allocation for CNG has been restored to 51%, which is expected to positively impact the current quarter. Management emphasized balancing consumer affordability with company profitability through calibrated end prices.

ATGL continued to expand its presence in new emerging businesses. In e-mobility, the company has commissioned 1,914 EV charging points across 22 states and 226 cities, with a target to reach 3,000 points by March-April 2025. ATGL is now a leading airport EV charge point operator. In the biomass business, production and sales of Compressed Biogas (CBG) have commenced from the Barsana plant, with plans to enhance offerings including fermented organic manure (FOM) and phosphate-rich organic manure (PROM). The company also initiated its first LNG station for long-haul trucks and buses in Tirupur, Tamil Nadu.

The company's steel pipeline infrastructure expanded to 13,082-inch kilometers. ATGL now serves over 922,000 domestic PNG connections, adding 28,677 connections in Q3 FY25 and over 100,000 for the nine-month period. For industrial and commercial consumers, the network reached 8,913 connections, with 167 additions in Q3 FY25. The 9-month capex, including cash spent and commitments for newer rounds, was approximately ₹650 crores, with an additional ₹1,000 crores committed for pure CGD. The total year-ending capex is projected to be in the range of ₹900-1,000 crores.

ATGL's current gas sourcing portfolio comprises approximately 40% APM, 7-8% new well gas (NWG), 25% HPHT gas, and the remaining 28% as RLNG. Management expects new well gas volumes to increase, encouraged by a premium over APM gas for producers. The company's LNG sourcing primarily relies on long-term contracts, with spot purchases typically kept below 5-7%, though it increased to about 10% due to recent APM reductions. The long-term LNG contracts are linked to Henry Hub (17-18%) and Brent (6-7%) indices.