Feb 12, 2019

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Editor’s Synopsis


Operational Highlights:

  • The Company has won 13 additional Geographical Areas (GA) in ninth round of bidding for developing CGD networks
  • The Company, along with its joint venture with Indian Oil Corporation Limited (IOCL), is now authorised to develop CGD networks in 35 GAs
  • 6 out 9 GAs are now operational in our joint venture with IOCL
  • In Tenth round bidding AGL has bided for 19 GAs and JV partner IOAGPL has bided for 7 GAs

Financial Highlights:


9M FY 19

  • Robust volume growth in 9M FY 19 in existing GAs by 18% in PNG and 11% in CNG
  • 9M 19 Revenue from Operations increased 34% Y-o-Y to INR 1329 Cr vs. INR 990 Cr
  • 9M 19 Operating EBITDA has increased by 15%  Y-o-Y to INR 315 Cr vs. INR 274 Cr

Q3 FY 19

  • Volume increase of 14% in PNG and 12% in CNG in Q3 FY 19 on Y-o-Y basis
  • Q3 19 Revenue from Operations increased 39% Y-o-Y to INR 485 Cr vs. Q3 18 NR 349
  • Q3 19 Operating EBITDA has increased by 26% Y-o-Y to INR 107 Cr vs. Q3 18 INR 85 Cr

Ahmedabad, February 13, 2019: Adani Gas Limited (AGL), a part of the Adani Group, today announced its first result after listing for the nine months and quarter ended December 31, 2018.  


The Company announced its listing on the stock exchanges on November 5, 2018 in a bid to become the largest city gas distribution (CGD) company in India and unlock its value for existing shareholders. As part of the listing process, AGL has allotted equity shares to existing shareholders of Adani Enterprises Limited in the ratio of 1:1. Following the listing, promoters will hold 74.92 percent stake in AGL whereas retail and institutional investors will hold 3.36 percent and 21.72 percent respectively.  


Financial Highlights:


Revenue from Operations increased 34% Y-o-Y to ` 1,329 Cr in 9M FY 19 vs ` 990 Cr in 9M FY 18 on the back of strong volume growth in both PNG and CNG distribution. Our CNG volume has grown by 11% to 204 mmscm against 184 mmscm in comparative period. Our volume of PNG distribution has also increased by 18% to 195 mmscm vs 165 mmscm in comparative period. Our Operating EBITDA for 9M FY 19 has increased by 15% Y-o-Y to ` 315 Cr vs ` 274 Cr last year.  
On Q3 FY 19 basis also, AGL has delivered strong performance with Revenue increase of 39% Y-o-Y to ` 485 Cr vs ` 349 Cr in Q3 FY 18. Our volumes growth during the quarter is 12% and 14% respectively in CNG and PNG respectively. Operating EBITDA for Q3 FY 19 has increased by 26% Y-o-Y to ` 107 Cr vs Q3 FY 18 EBITDA of ` 85 Cr.  
As per Ind AS 103 “Business Combinations”, the previous period figures have been restated to include the effect of composite scheme of arrangement from April 1, 2017. Accordingly, total income for the year ended March 31, 2018, nine months and quarter ended December 31, 2017 is restated to include total income of ` 144 Cr, ` 48 Cr and ` 23 Cr respectively. Profit before tax for these periods is also lower by ` 8 Cr, ` 7 Cr and ` 3 Cr respectively.


Business Update:

Company recently won additional geographical areas (GA) in the ninth round of CGD bidding. With these wins, AGL is now authorised for 17 GAs and our joint venture with Indian Oil is now authorized for 18 GAs for natural gas network development and distribution, making us one of the leading CGD players in the country. In tenth round AGL has bided for 19 GAs and JV partner IOAGPL has bided for 7 GAs.
“We, as a group, are moving in the right direction with our diverse business sectors like mining, gas distribution, agro businesses, solar manufacturing and ancillary industries. The Government of India has set a target to increase the share of natural gas in India’s primary energy mix to 15% by 2022. With AGL being listed now, we aim to be the largest CGD Company in the country in next five years and have a more focused approach for creating substantial value for our shareholders and fulfill our national energy imperatives” said Mr. Gautam Adani, Chairman Adani Group.  


Suresh P Manglani, CEO, Adani Gas Ltd., said, “The third quarter of FY19 has carried forward the good work done. Adani Gas is operating currently CGD network in 4 locations i.e. Ahmedabad, Baroda, Faridabad and Khurja. Its joint venture with IOCL is currently running CGD networks at Prayagraj, Chandigarh, Panipat, Udham Singh Nagar, Daman, Dharwad, Ernakulam, South Goa and Bulandshahr. With the Government of India planning to offer additional geographical areas for gas distribution in the 10th round involving 50 GAs comprising of 123 districts coupled with rapid urbanization, AGL is poised to become one of the largest private sector CGD companies of the world. We endeavour to utilize our decade-long CGD experience and expertise to be the largest CGD Company.”


About Adani Gas

Adani Gas Ltd is developing and operating City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to industrial, commercial and domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector. Natural Gas is a convenient, reliable and environment friendly fuel that allows consumers to enjoy a high level of safety, convenience and economic efficiency. Headquartered in Ahmedabad, India, the company has already set up city gas distribution networks in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. In addition, the development of Prayagraj, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, Udhamsingh Nagar, South Goa and Bluandshahr gas distribution is awarded to the joint venture company of Adani Gas Ltd and Indian Oil Corporation Ltd.