India's Adani Total Gas posts Q1 profit rise on strong CNG demand
BENGALURU, July 29 (Reuters) - Adani Total Gas reported a jump in first-quarter profit on Monday, helped by strong demand for the cleaner-burning compressed natural gas (CNG), sending its shares 2% higher.
The Adani group company's consolidated profit rose 15% to 1.72 billion rupees (around $21 million) in the three months ended June 30, marking its sixth straight rise in quarterly profit.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The gas distributor's CNG sales volumes, which account for over half of its total sales, jumped 20% during the quarter with the addition of 24 new stations across the country.
Demand for CNG, used mainly in the transport sector, comes amid a government push to rein in vehicular pollution. India's fuel consumption in the quarter was also driven by strong industrial activity in the run-up to the general elections.
Revenue from operations rose to 12.39 billion rupees from 11.35 billion rupees a year ago.
Sales volume in the company's piped natural gas (PNG) segment, its second-biggest, rose 11% to 77 million standard cubic meter of gas per day.
The rise in profit comes even as Indian city gas distributors bought spot LNG - the key raw material for CNG - at higher import prices amid a decline in domestic output.
($1 = 83.7010 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Eileen Soreng)