Adani Gas reports 61% rise in Q4 net profit

NEW DELHI: Adani Gas Ltd on Friday reported a 61 per cent rise in standalone net profit to Rs 122 crore for fourth quarter ended March 31. The company had posted a net profit of Rs 76 crore in the year-ago period.

Adani Gas, which retails CNG to automobiles and piped natural gas to household kitchens and industries, saw sales volumes rise 3 per cent to 145 million cubic metres, the firm said in a statement.

However, revenue from operations was 1 per cent lower at Rs 490 crore. The company did not give reasons for lower revenues and higher profit.

“The recent unfortunate COVID-19 event and the consequential nationwide lockdown in India has impacted the current ongoing demand of CNG and PNG (piped natural gas) by industrial and commercial segments,” the statement said.

City gas distribution falls under essential services and Adani Gas Ltd (AGL) said it will ensure that during this period of crisis, the supply of PNG and CNG is maintained without any interruption.

“Currently, with over 95 per cent of volume coming from the operational geographical areas (GAS), makes the business quite resilient,” it said. We expect to continue to generate healthy cash flows from operations going forward.” The company said capital contribution for infrastructure development in new GAS has been made from the accruals of the company.

“AGL’S strategy is to fasttrack development of steel pipeline laying and setting up of CNG stations to initiate early development of the ecosystem in the new GA’S,” it added.