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Shares of Adani Total Gas extended their rally to hit record high of 3,471 apiece on the BSE in Monday's trading session. The Adani Group stock has outperformed by rallying more than 35% in a month's period as compared to about 8% rise in benchmark Sensex.

Adani Total Gas Ltd on Thursday reported a flat net profit of 138 crore for the first quarter ended June 2022 (Q1 FY23), as against the year-ago period, as higher gas prices ate into increased CNG and piped cooking gas sales volumes. Though, its revenue from operations more than doubled to 1,110 crore while EBITDA rose 6% to 228 crore. 

The company said there was a significant increase in the price of domestic gas available for city gas operations as well as that of imported LNG in the quarter. Also, the lower allocation of domestically produced gas during the quarter led to buying more imported fuel, impacting the gas cost as well as the gross margins.

The firm, which is a city gas joint venture of Adani group and TotalEnergies of France, saw CNG sales to automobiles rise 61% to 109 million standard cubic meters (mmscm) in the quarter and piped cooking gas sold to households rise 3% to 74 mmscm.

Adani Total Gas is developing City Gas Distribution (CGD) networks to supply the Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic (residential) and Compressed Natural Gas (CNG) to the transport sector. 

Adani Total Gas shares have given multibagger return of more than 273% in a year's period, whereas, the multibagger stock is up about 96% in 2022 (YTD) so far.

"It has been a challenging scenario for the city gas distribution (CGD) industry with significantly high input gas prices mainly due to geopolitical factors as well as supply shortages across the globe, which are likely to continue in the near future," said Suresh P Manglani, CEO of Adani Total Gas Ltd (ATGL).

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