New Delhi, May 8 (PTI) Billionaire Gautam Adani’s CNG retailing firm Adani Gas Ltd on Friday reported a 61 per cent rise in standalone net profit in the fourth quarter on the back of lower tax rate and operational efficiencies.
Net profit in January-March at Rs 122 crore was 61 per cent higher than the net profit of Rs 76 crore a year back, the company said in a statement.
In a media call, company CEO Suresh Manglani said the profit was higher due to lower tax rate and operational efficiencies.
The government had offered lower tax rates to companies willing to forego all exemptions.
Adani Gas opted for a lower tax regime of close to 25 per cent as compared to the previous rate of 33 per cent, resulting in higher profitability.
The company, which retails CNG to automobiles and piped natural gas to household kitchens and factories primarily in Gujarat and Uttar Pradesh, saw sales volumes rise by 3 per cent to 145 million standard cubic metres.
First the travel restrictions imposed to curb the spread of coronavirus and then the lockdown impacted CNG sales, which dipped 2 per cent to 7 million metric standard cubic metres (mmscm), he said.
Piped natural gas (PNG) sales were up 8 per cent to 75 mmscm.
However, revenue from operations was 1 per cent lower at Rs 490 crore.
“The recent unfortunate COVID-19 event and the consequential nationwide lockdown in India has impacted the current ongoing demand of CNG and PNG (piped natural gas) by industrial and commercial segments,” the statement said.
City gas distribution falls under essential services, the company has ensured CNG and PNG supplies, Manglani said.
The firm retails CNG and PNG in Ahmedabad, Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. It also has won licenses for nine other cities including Udaipur in Rajasthan and Jhansi in Madhya Pradesh.
Its 50:50 joint venture with Indian Oil Corp (IOC) holds 8 licenses for cities such as Allahabad, Chandigarh and Panipat.
Manglani said the company will resume work on setting up city gas distribution networks where it has licenses once the lockdown is lifted.
Adani Gas, he said, has a capex plan of Rs 1,500 crore for 2020-21.
“We are sticking to our capex plans,” he said.
The company said capital contribution for infrastructure development in new GAs has been made from the accruals of the company.
“AGL’s strategy is to fast-track development of steel pipeline laying and setting up of CNG stations to initiate early development of the ecosystem in the new GA’s,” he added.