Adani Total Gas Achieves Strong FY24 Results, Expands into New Energy Sectors

Recovery of PNG Industrial volume and the addition of new PNG connections in domestic and commercial segments contributed to a 5% Y-o-Y rise in PNG Volume.

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Adani Gas

Adani Total Gas Ltd (ATGL), a prominent City Gas Distribution (CGD) company in India, has unveiled its operational and financial achievements for the fiscal year (FY24) and the quarter ending March 31, 2024. Suresh P Manglani, ED & CEO of Adani Total Gas, described FY24 as a pivotal year for ATGL, characterized by robust operational and financial performance, with a remarkable 27% YoY EBITDA growth driven by a substantial 15% surge in volume.

Manglani underscored the company's commitment to India's energy transition journey, highlighting investments in top-tier infrastructure across Geographical Areas (GAs) and diversification into areas such as Compressed Biogas, EV Charging Infrastructure, and LNG for trucking and Mining (LTM).

He noted, "We have initiated the first phase of one of India's largest diversified feedstock-to-CBG plants at Barsana in Mathura and expanded our E-Mobility footprint to 23 states. These, along with LTM, represent our next significant growth drivers."

FY24 Results Overview

  • CNG Volume witnessed a substantial 21% Y-o-Y increase due to network expansion across GAs.
  • Recovery of PNG Industrial volume and the addition of new PNG connections in domestic and commercial segments contributed to a 5% Y-o-Y rise in PNG Volume.
  • Despite an impressive 15% Y-o-Y rise in overall volume, Revenue from operations observed a modest 3% Y-o-Y increase, attributed to a commendable 6% Y-o-Y reduction in gas cost and efficient gas sourcing.
  • EBITDA surged by an impressive 27% Y-o-Y, driven by higher volume and opex optimization.

Capital & Leverage Position

  • ATGL maintains a robust balance sheet with a Debt-to-Equity ratio at 0.41x.
  • Net Debt to EBITDA ratio stands at a healthy 0.89x.
  • ICRA reaffirmed ATGL's credit rating at AA- with the outlook revised to Stable from Negative.

Key ESG Highlights

  • S&P Global ESG rating positioned ATGL 13th under Gas utilities with an impressive 80 percentile.
  • ATGL's commitment to sustainability was underscored by signing the United Nations Global Compact (UNGC).
  • Over 15,600 students were trained across 58 schools under the Greenmosphere initiative.
  • ATGL demonstrated its environmental stewardship by planting over 2.7 lakh trees across multiple locations.

Awards & Accolades – FY24

  • Recognized for Outstanding Commitment in Road Safety by FICCI.
  • ATGL Corporate office awarded the prestigious IGBC "Gold" Certification by Indian Green Building Council.
  • Awarded Climate Action Programme (CAP) - Committed category by CII.
  • Received the esteemed "Golden Peacock Award for HR Excellence" for HR best practices in 2023.

ATGL holds authorization in 33 Geographical Areas, significantly contributing to enhancing the share of natural gas in India's energy mix. Additionally, it has formed subsidiaries like Adani TotalEnergies E-Mobility Ltd (ATEL) and Adani TotalEnergies Biomass Ltd (ATBL) for E-Mobility and Biomass Business respectively. Furthermore, it has a 50:50 joint venture named Smart Meter Technologies Private Limited for its gas meter manufacturing business.