India’s Adani Total Gas Ltd reported a 20.7% rise in quarterly profit on Tuesday, propelled by price hikes and expansion of its compressed natural gas (CNG) stations.
Adani Total’s consolidated net profit rose to 979.1 million rupees ($11.95 million) for the three months ended March 31, from 810.9 million rupees a year earlier, said the company, which distributes piped gas in various Indian cities.
City gas distributors, who faced gas shortages due to higher spot liquefied gas prices and lower domestic allocations, have passed on price hikes to customers. The profit margins have increased with spot LNG prices easing.
Consolidated revenue from operations rose 12.4% year-on-year to 11.97 billion rupees, helped by higher volume along with an increase in sales price.
The company said its CNG volume increased 28% year-on-year, driven by an addition of 126 new stations.
The results also come as the company, part of a larger conglomerate led by billionaire Gautam Adani, recovers from the fallout of a scathing U.S. short-seller report in January.
Shares of the company, which tumbled over 83% in the wake of the short-seller’s allegations, have recovered about 48% from those lows.
