Adani Total Gas Q1 Results: Shares fall on lower profit, weak operating performance

Shares of Adani Total Gas Ltd fell on Tuesday, July 21, after the city gas distributor reported a 14.2% year-on-year decline in consolidated net profit for the June quarter, even as revenue posted strong growth. The company's consolidated net profit stood at ₹141.7 crore for the quarter, compared with ₹165.2 crore in the corresponding period last year. Revenue from operations rose 27.3% year-on-year to ₹1,907 crore, up from ₹1,498 crore a year earlier, aided by higher gas sales volumes.

However, profitability came under pressure as the cost of natural gas and traded items increased sharply to ₹1,302.5 crore from ₹928.4 crore in the year-ago quarter.

As a result, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) declined 7.9% to ₹270 crore from ₹293.2 crore a year earlier, while the EBITDA margin contracted to 14.2% from 19.6%, reflecting the impact of higher input costs.

Profit before tax (PBT) declined 15.9% year-on-year to ₹186.9 crore. Meanwhile, the company's share of profit from joint ventures more than doubled to ₹9.6 crore during the quarter.

Following the earnings announcement, Adani Total Gas shares fell as much as 3% in intraday trade. The stock later trimmed losses to settle 1.67% lower at ₹701 apiece.

Despite today's decline, the stock has gained roughly 18% so far this year.