Adani Gas records 42% drop in Q1 PAT to Rs46cr; CNG, PNG sales contract due to Covid-19

During the period, overall sales volumed contracted by 53% to 64 MMSCM as against 137 MMSCM of Q1FY20.

Aug 06, 2020 10:08 IST India Infoline News Service

The Adani Group-backed Adani Gas witnessed a contraction in both bottom-line and top-line during June 2020 (Q1FY21) on the back of lower sales volume, which was impacted due to Covid-19 lockdown. In Q1FY21, the company registered a standalone net profit of Rs46cr, down by 42% compared to Rs79cr in the corresponding period of the previous year.

Further, in the quarter, revenue from operations was at Rs207cr, declining by 57% from Rs479cr a year ago same period. As for EBITDA, stood at Rs86cr lower by 41% as against Rs146cr of Q1FY21.

During the period, overall sales volumed contracted by 53% to 64 MMSCM as against 137 MMSCM of Q1FY20. Adani Gas in the audit report said, "With continued lockdown of 69 days in Q1FY21 the Company witnessed volume impact of 53% as compared to Q1FY20. There was a progressive rebound in volumes as compared to provide situation and exit volume as on June 30, 2020 had already reached at 1.25 mmscmd as compared to 1.60 mmscmd for the month of Mar’20. The operational performance of the business continues to be recovering in phased manner towards Pre-COVID level".

Suresh Manglani, CEO of Adani Gas said, “We are watchful of the ongoing pandemic situation for Covid-19. As a responsible natural gas service provider, Adani Gas Limited has ensured continuous supply of CNG and PNG, uninterrupted and prompt customer care service during these tough times. Adani Gas Limited has delivered a sustainable performance in Q1FY21 despite the impact on PNG Industrial & Commercial and CNG segments. The company is continuously and closely monitoring the developments and is actively working to moderate the impact of this unprecedented situation. We have resumed project and operational activities in phased manner which were ceased in March’20 on account of lockdown, to meet our commitments towards development of city gas distribution in the new geographical areas (GAs) and contribute towards the nation-building & providing clean energy for all".

On segment-wise breakup, the CNG sales in Q1FY21 was at 24 MMSCM down 66% compared to 71 MMSCM of Q1FY20. While, PNG sales fell by 40% to 40 MMSCM in Q1FY21 versus 67 MMSCM of Q1FY20.

Gautam Adani, Chairman, Adani Group said, “Adani Gas Limited has delivered a good performance even amidst the global pandemic. Commitment to sustainability is the cornerstone of the growth which AGL is set to chart. Our strategy is designed to deliver growth with goodness while contributing to the larger objective of nation-building. In line with the Government’s policy we are committed to contribute to the nation’s vision of providing a safer, cleaner and greener energy. As India’s economy slowly revitalizes, Adani Gas will put its best to overcome challenges posed by the global pandemic as a nation”.

Following downside in Q1 result, the Adani Gas stock was trading in red on Thursday's trading session. The stock was performing at Rs154.20 per piece down by 2.74% on Sensex at around 10.58 am. 

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