Adani Total Gas shares slip 5% after Q3 FY25 results; check details

Shares of Adani Total Gas Ltd fell sharply in Monday's trade after the company recorded a 17 per cent drop, year-on-year (YoY), in its standalone net profit for the December 2024 quarter (Q3 FY25) due to asset base expansion and higher gas costs. The stock slumped 4.51 per cent to hit a low of Rs 612.85.

During the quarter under review, profit declined to Rs 143 crore from Rs 172 crore in the year-ago period. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) slipped to Rs 272 crore, down 10 per cent compared to Rs 301 crore in the corresponding period last fiscal.

Revenue from operations, however, climbed 12 per cent to Rs 1,397 crore on account of higher volume in Q3 FY25 as against Rs 1,243 crore in Q3 FY24.

"Besides higher volume, with lower allocation of APM gas to CNG segment coupled with higher R-LNG price due to winter, the cost of natural gas rose by 20 per cent. During the quarter, APM allocation for CNG segment was at 47 per cent, the balance was met with new well gas, existing contracts and spot procurement," Adani Total stated in a release.

The company increased its CNG station count to 605 by adding 28 new stations during the December 2024 quarter.

"We are striving to further accelerate development of PNG and CNG infrastructure across our 34 GAs, including the recently added Jalandhar GA in Punjab," said Suresh P Manglani, ED & CEO at Adani Total.

"ATGL took a balanced approach in passing the higher gas cost to ensure volume growth does not get impacted, but due to the replacement of APM gas with other sources, the gas cost has increased, which has impacted the quarter profitability," it added.

As of December 2024, promoters held a 74.80 per cent stake in the company.