Changes in tax laws and better margins helped Adani Gas (AGL), the city gas distribution arm of Adani Group report a 137% y-o-y increase in net profit for the September quarter. Parag Parikh, CFO of Adani Gas, said on a media call that the net profit of Rs. 120 crore had been helped by the reversal of a deferred tax provision of Rs. 11.63 crore. The effective tax rate has come down to 25.17% from 34.94% earlier.
The operating margins for the September quarter rose 248 basis points from 26.99% on higher realisations. Ebitda for the quarter was up 23.43% y-o-y to Rs. 135.73 crore on the back of higher volume growth in the both the compressed natural gas (CNG) and piped natural gas (PNG) distribution businesses. The overall sales volume in the September quarter was up 7% to 146 million metric standard cubic meter (mmscm) against 136 mmscm a year ago on the back of volume growth in both CNG and PNG distribution, the company said. The CNG volume was up 9% y-o-y to 75 mmscm while the PNG volume was up 6% during the quarter.
In the September quarter, Adani Gas connected over 12,500 homes under the piped natural gas network taking their total connections to 400,000. The gas distributor’s, total commercial and industrial connections rose to 4,145 as of September end, where 158 connections were added in Q2FY20 alone.
The company is also firming up plans to open around 1,500 fuel retail outlets in the next 7-8 years and is evaluating locations for the purpose. “We have not decided on the locations and financing of the retail outlets yet, it is still in process of being firmed up,” Suresh P Manglani, CEO, Adani Gas said.
French energy major Total is in process of acquiring 37.4% stake in Adani Gas for the development of gas distribution infrastructure in India and supplying gas at affordable prices.Total Holdings, a 100% subsidiary of Total, will make an open offer to existing shareholders for 25.2% stake at Rs. 149.63 per share. In case all the existing shareholders subscribe to the issue, Total will acquire the remainder from the promoters. “We have submitted the applications for the open offer to Sebi and are waiting for the necessary approvals,” Parikh said.