India`s Adani Total Gas posts bigger Q2 profit on steady CNG demand
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India's Adani Total Gas posted a bigger profit for the seventh straight quarter on Thursday, aided by higher sales of its compressed natural gas (CNG) amid the government's push for wider use of gas-based vehicles.
The company, part of the ports-to-power Adani conglomerate, said its consolidated profit grew 7.5% to 1.87 billion rupees ($22.24 million) in the three months ended Sept. 30.
The demand for CNG in India is climbing as the government seeks to cut vehicular pollution and make cleaner-burning energy more accessible. It is targeting setting up of 20,000 CNG stations by the end of the decade.
That has helped Adani Total Gas in the past seven quarters.
Its CNG sales volumes, which account for 67% of total sales, jumped 20% in the latest quarter, boosted by the addition of 18 new stations across the country. It has 577 CNG stations now.
Last month, the company secured its maiden financing, worth $375 million, to help expand its distribution network across 13 states.
Sales volume in its piped natural gas (PNG) segment, its second-biggest, rose 9% to 157 million standard cubic meters of gas per day.
Its total revenue from operations increased to 13.18 billion rupees from 11.79 billion rupees a year ago. ($1 = 84.0700 Indian rupees)
