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CGD player Adani Gas Ltd will soon become a full-service fuel retailing operator offering multi-fuel products, including Motor Spirit (petrol), High Speed Diesel (HSD), Electric Vehicles besides CNG and LNG, to customers.
After the French energy major Total SA came on board with Adani Gas, the company is all geared up to make it big with multi-fuel retailing. The company is in the process to apply for a licence.
“We will take benefit of expertise and strength of Total. Our intent is to become a full service operator for customers (and) offer multi-fuel offering, whether CNG, MS, HSD, EV, LNG,” said Suresh Manglani, CEO of Adani Gas. “We have (set up) a special purpose vehicle — Total Adani Fuel Marketing — incorporated. And hope to see application of the licence under new regime will be applied and we will work on developing fuel retailing outlets around CNG and LNG,” Manglani said at a media analyst concall on Wednesday. The structure of ownership of the SPV is being finalised, he added.
However, the focus remains on CNG development, and fuel retailing business is a future path. “Once we get into that path — shortly in future — we will develop a complete business model, where sourcing, supply side, location identification etc will come into picture and a lot of work will start,” Magalani said after the quarterly results were announced.
Covid impact
The company posted standalone net profit of ₹46 crore for the first quarter ended June, a decline of 42 per centfrom ₹79 crore in the corresponding quarter a year ago. Standalone revenues from operations for the quarter stood at ₹207 crore against ₹479 crore in the same period last year. Standalone EBITDA for the quarter stood at ₹86 crore as against ₹146 crore in the comparable period. On a consolidated basis, the company posted net profit of ₹39 crore as against ₹79 crore in the corresponding quarter last year, a dip of 50 per cent. The consolidated revenues from operations stood at ₹207 crore as against ₹479 crore last year.
The fall in earnings is attributed to the continued lockdown of 69 days in the first quarter impacting volume by 53 per cent, compared with the same quarter last year.
“There was a progressive rebound in volumes compared to pre-covid situation and exit volume as on June 30, had already reached at 1.25 mmscmd compared to 1.60 mmscmd for the month of March.The operational performance of the business continues to be recovering in phased manner towards pre-Covid level,” said Manglani.
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