BENGALURU (Reuters) – India’s Adani Total Gas reported a nearly 9% rise in first-quarter profit on Tuesday, helped by higher sales of compressed natural gas (CNG).
The company, which distributes piped gas to various Indian cities, said consolidated profit rose to 1.50 billion rupees ($18.2 million) for the quarter ended June 30 from 1.38 billion rupees a year earlier.
Adani Total, part of the Adani group conglomerate, said its CNG volume increased 18% from last year led by an addition of 11 new stations.
City gas distributors, who faced gas shortages due to higher spot liquefied gas prices and lower domestic allocations, had passed on price hikes to customers.
However, prices came down as the government intervened and spot LNG prices eased.
Indian government lowered gas prices in April and set a ceiling to help industrial buyers and city gas distributors.
Adani Total’s earnings before interest, taxes, depreciation and amortization (EBITDA) rose 12% year-on-year to 2.55 billion rupees, helped by cost optimization and maintaining a balanced price strategy, the company said.
Consolidated revenue from operations rose marginally by 2.3% year-on-year to 11.35 billion rupees as the company passed on the reduction in domestic gas prices to customers.
Shares of the company rose as much as 1.07% after the results. They are down 82% for the year so far, mainly hurt by a scathing report by U.S. short-seller Hindenburg Research on the Adani Group.
($1 = 82.2725 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Eileen Soreng)
