Adani Total Gas reports 9% rise in Q1 profit; stock trading flat

Shares of Adani Total Gas Ltd were trading flat in the afternoon session today after the Adani Group firm reported a 9% rise in net profit for the June 2023 quarter. Adani Total posted a net profit of Rs 150.2 crore in Q1 of this fiscal against Rs 138.4 crore profit during the quarter ended June 2022. In the March 2023 quarter, profit stood at Rs 98 crore. Revenue climbed 1.3% to Rs 1056 crore in Q1 against Rs 1042 crore during the quarter ended June 2022.

EBITDA margin in the June quarter rose to 23.5% in Q1 against 21% on a YoY basis. EBIDTA during Q1 surged 13.3% to Rs 247.8 crore against Rs 218.6 crore against the corresponding quarter in the previous fiscal.

Meanwhile, Adani Total Gas shares were trading 0.18% lower at Rs 663.05 against the previous close of Rs 663.40 on BSE.

Adani Total Gas stock has lost 79.39 percent in a year and fallen 82 per cent in 2023. Market cap of the firm stood at Rs 72,972 crore on BSE. A total of 0.39 lakh shares of the firm changed hands, amounting to a turnover of Rs 2.56 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the Adani Total Gas stock stands at 53.6, signaling the stock is trading neither in the oversold nor overbought zone. Adani Total Gas has a one-year beta of 1.3, indicating high volatility during the period. Adani Total Gas stock is trading higher than the 5 day 10 day , 20 day, 30 day but lower than the 50 day, 100 day and 200 day moving averages.

Adani Total Gas said CNG volume rose 18% Y-o-Y on account of reduction in CNG prices along with network expansion of CNG stations. PNG Volume fell 6% Y-o-Y due to lower offtake by consumers due to lower alternative fuel prices.

"Despite an increase in volume, revenue from operations rose marginally due to reduction in sales price as ATGL passed through the reduction in Domestic Gas prices as per the revised pricing formula approved by Government of India w.e.f. 8th April 2023," said Adani Total Gas.

"Despite increase in volume, the cost of gas has remained flat due to lower domestic gas price. EBITDA climbed 12% on account of higher volume, cost optimisation and maintaining a balanced price strategy," the company added.

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