Rutam Vora Adani Gas Ltd (AGL) on Tuesday said it has achieved significant volume recovery in the quarter ended September 2020 over the first quarter, a major part of which was under Covid-related lockdowns.
The average volumes for September 2020 stood at 1.59 mmscmd (million standard cubic feet per day) compared with an average volume of 0.71 mmscmd in the first quarter. the company’s financial results showed a sharp jump in standalone net profits, from ₹46 crore in the first quarter of current fiscal to ₹136 crore in the quarter under review, indicating a 195 per cent rise on a q-o-q basis. Standalone revenues from operations stood at ₹441 crore as against ₹207 crore in the previous quarter.
At a media analyst concall on Tuesday, Suresh Manglani, CEO, Adani Gas, informed that the company has seen demand for PNG and CNG rise after the gradual unlocking measures and that the company has achieved 100 per cent recovery in industrial sales volumes. Announcing the financial results for the second quarter, Mangalani also informed that the company achieved its highest-ever quarterly financial result for the September quarter.
On year-on-year comparison, AGL has seen a 48 per cent jump in EBITDA to ₹218 crore as against ₹147 crore in the corresponding quarter a year ago.
The AGL Board of Directors has also approved a proposal to raise funds by way of issuance of US dollar-denominated foreign currency bonds of to $400 million (approximately ₹3,000 crore). “This is to meet our funding requirements for the next two years. It is part of our overall capex funding requirement of ₹7,500-8000 crore over the next five years. This will meet our requirements for the next two years. We found this to be a cost-optimised option,” it said.
The Board also approved changing the name of the company to Adani Total Gas Ltd after induction of Total Holdings SAS as joint promoter of the company. Total and Adani are equal equity partners with each controlling 37.4 per cent, while the remaining 25.2% is with public holding.
Manglani also informed that the company has altered its main object clause of Memorandum of Association (MOA) by inserting objects to carry on the businesses of biogas, biofuel, biomass, LCNG, HCNG, EV, hydrogen, manufacturing of various equipment and provision of value-added services relating to CGD (city gas distribution) business.
“Time demands that we should look into various options for our growth. And bio is a reality. The government’s vision is to push bio. So we are looking forward, before the government makes it mandatory for us to use bio. We are looking forward to many new opportunities in these areas. There is a huge demand for biomass and bio fuels,” he said.
AGL stock ended at ₹222.85 on BSE, 1.55 per cent higher, on Tuesday.