ATGL's Expansive Growth: Quarterly Success and Strategic Ambitions

Adani Total Gas Ltd reports remarkable operational performance with significant progress in CNG and PNG network expansion. The company focuses on increasing digital consumer engagement, hydrogen blending initiatives, and future network infrastructure, funded by a USD 375 million deal. Financial results show a 7.5% profit increase in Q2 FY25.

Adani Total Gas Ltd (ATGL) has showcased robust operational performance in the second quarter of the fiscal year 2025, with the CEO and Executive Director, Suresh P Manglani, attributing this success to network expansion and rising natural gas consumption from commercial and industrial sectors as gas prices stabilize.

The company remains committed to enhancing its compressed natural gas (CNG) distribution framework, encompassing company-owned-dealer-operated and dealer-owned-dealer-operated stations. With its joint venture partner IOAGPL, ATGL is on the verge of reaching 1,000 CNG stations across India.

Beyond CNG, ATGL has broadened its piped natural gas network. Manglani highlighted the growth of the subsidiary's electric vehicle and CBG business, noting that their network now includes 1,486 charging stations across 21 states and 213 cities, with plans to exceed 3,000 charge points at strategic locations soon.

Emphasizing digital advancements, Manglani stated that 98% of consumer interactions are managed through the My AdaniGas app integrated with the company's digital platform, SOUL. The company has also initiated a hydrogen blending program in Ahmedabad.

During the quarter, ATGL secured USD 375 million in what is claimed to be the largest global financing initiative for a city gas distribution company in India, aimed at bolstering network infrastructure. Reflecting on the financial results, ATGL's net profit rose by 7.5% to Rs 187 crore for the quarter ending September 30, 2024, with operating revenue climbing 12% to Rs 1,318 crore compared to the same quarter in the previous fiscal year.

(With inputs from agencies.)