Adani Total Gas, an Adani Group company, has announced a further 13% cut in its gas supply from GAIL (India). This cut will be effective from today i.e. Saturday (16 November 2024). Due to this, the prices of CNG and PNG may increase.
The company said that this cut will have an adverse impact on its profits. Shares of Adani Total Gas saw a rise of 0.75% on Thursday and the stock closed at Rs 684.15 on BSE. The market cap of the company is Rs 75,243.51 crore.
The profitability of Adani Total Gas will be adversely affected.
Adani Total said in an exchange filing, 'Such shortages are prevalent across the entire CGD (city gas distribution) industry. Although the industry is in discussion with key stakeholders, the profitability of the company (Adani Total Gas) will be adversely affected.
Additionally, the company is examining the current situation and will adjust retail prices for end consumers to mitigate the impact of low allocation. However, it will continue to provide uninterrupted gas availability to its consumers.
This cut follows a previous cut of about 16% in October.
This latest cut follows a previous cut of about 16% in October. Adani Total is engaged in CGD business and supplies natural gas to domestic, commercial, industrial and vehicle users.
Adani Total shares may see a decline on Monday
Shares of city gas companies Indraprastha Gas, Mahanagar Gas and Adani Total Gas may see a decline in Monday's trading. All three companies have announced that their domestic gas allocation from GAIL (India) Limited has been reduced by 13-20%.
Adani Total Gas' profit increases by 7.51% to ₹186 crore
Adani Total Gas has made a profit (consolidated net profit) of Rs 186 crore in the second quarter of the financial year 2024-25. It increased by 7.51% on annual basis. The company had made a profit of Rs 173 crore in the same quarter a year ago.
The company's operational revenue in the July-September quarter stood at Rs 1318 crore. There has been an increase of 12% on annual basis. The company had earned Rs 1179 crore in the second quarter of the financial year 2023-24.
Adani Total Gas' profit increased by 3% on quarterly basis
In the first quarter (April-June) of the current financial year, the company had made a profit of Rs 172 crore. There has been an increase of 8% on quarterly basis. During this period, Total Gas had generated revenue of Rs 1239 crore from operations. There has been an increase of 6.40% on quarterly basis.
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