The outbreak of Covid-19 and the subsequent lockdown had brought down a halt in the industrial and commercial activities coupled with limited mobility of public and private vehicles throughout the country. As a result, the performance of natural gas players in terms of sales volume was drastically affected. Adani Gas Limited’s (AGL) sales volume in the first quarter (Q1) of 2020-21 witnessed a decline of 47 per cent as compared to the corresponding period last year. The sales volume declined from 1.53 million standard cubic meter per day (mmscmd) to 0.71 mmscmd. However, its performance has considerably improved over the past two months with increased sales and revenues. AGL’s sales volume have increased from 0.35 mmscmd in April 2020 to 1.13 mmscmd in June 2020. The performance recovery rate has increased from 23 per cent to 74 per cent in the mentioned time period.
AGL’s sales volume recovery in Q1 2020-21 during lockdown
Note: Recovery percentage is the performance in Q1 2020-21 as a percentage of performance in Q1 2019-20.
Source: Investor Presentation, Q1 2020-21, AGL
In terms of revenue, AGL witnessed recovery of 43 per cent with revenues amounting to Rs 2.07 billion in Q1 2020-21, down from Rs 4.79 billion in Q1 2019-20. The recovery rate has gradually increased from 22 per cent in April 2020 to 66 per cent in June 2020 as revenues increased from about Rs 330 million to Rs 1.12 billion respectively.
AGL’s revenue recovery in Q1 2020-21 during lockdown
Source: Investor Presentation, Q1 2020-21, AGL
The sales volume is gradually picking up with the easing of lockdown in the geographical areas (GAs) where AGL operates. It now plans to focus on fast tracking the development of steel pipeline laying and setting up of compressed natural gas (CNG) stations to initiate early development of ecosystem in the new GAs.