City gas distribution company Adani Gas reported a profit before tax (PBT) of Rs 156 crore, a rise of 30 per cent on a year on year basis due to better operational performance. The company saw a marginal decline in its compressed natural gas (CNG) volumes for the March quarter.
With demand from industrial, commercial and transportation down, the hit on volumes is expected to be higher for the June quarter.
For the March 2020 ended quarter, the company reported a profit after tax (PAT) of Rs 122 crore, 61 per cent higher compared to the same quarter a year ago. Revenue for the company saw a marginal dip of 1 per cent at Rs 490 crore.
Adani Gas total sales volume was at 145 MMSCM for the March quarter, a year on year growth of 3 per cent. Of this, piped natural gas (PNG) sales volumes grew at 8 per cent and CNG volumes saw a dip of two per cent.
Commenting on the current trend for PNG and CNG demand, company executives on a media call said,” For CNG, roads are empty and demand destruction has happened. PNG volumes come from industries, commercials and domestic, where industries and commercials have seen a hit.” The executive added there would be a definite volume impact for the June quarter.
Adani Gas plans to continue with its planned capital expenditure of Rs 1,500 crore. Suresh Manglani, chief executive officer for the company said we are maintaining our capex cycle and restart construction work once the lockdown lifts. Construction across geographical areas (GA)s for city gas distribution network has halted owing to on-going lockdown.
The company executive also added it has invoked force majeure with Petroleum and Natural Gas Regulatory Board (PNGRB) as the intensity and the duration of COVID-19 impact on business is yet to be known.