Adani Total Gas has announced a further reduction in its gas supply from GAIL (India) by 13 percent, effective November 16, 2024. The company said that this reduction would adversely affect its profitability.

"Such reduction is across the CGD (City Gas Distribution) industry. While the industry is in discussion with key stakeholders pending resolution, there would be an adverse impact on the profitability of the Company (Adani Total Gas). Also, the Company is examining the current situation and shall calibrate the retail prices to end consumers to mitigate the impact of lower allocation while it will continue to provide uninterrupted gas to its consumers," Adani Total said in an exchange filing.

This latest cut follows a previous reduction of approximately 16 percent in October, as communicated by GAIL, under the Administered Price Mechanism (APM) for supplying Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG).

"Based on the communication received from nodal agency, APM pried domestic gas allocation to the Company has been reduced by ~16 percent, effective 16th October 2024, compared to the earlier allocation. Such reduction is across the CGD industry and the industry is engaged with the key stakeholders seeking resolution in the interest of end consumers and continued growth of CNG vehicles in India," Adani Total had said in the filing dated October 17, 2024.

Adani Total on October 24 reported a 7.5 percent YoY increase in consolidated net profit at Rs 186 crore for the quarter ended September 30, 2024. The company's revenue from operations rose 12 percent on-year to Rs 1,318 crore in Q2FY25.

On November 14, the shares of Adani Total closed over 1 percent higher at Rs 688. The company is engaged in the CGD business and supplies natural gas to domestic, commercial, industrial, and vehicle users.

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