Shares of Adani Total Gas (ATGL) were trading 2% below on 1 November after the company’s Q2 earnings failed to impress the street.

Adani Total Gas, a joint venture between Adani Group and TotalEnergies of France, on 31 October, announced its quarterly earnings for July- September. The company reported an 8% year-on-year (YoY) increase in its consolidated net profit at Rs 173 crore for the quarter under review against Rs 160 crore reported in the year-ago quarter.

The company’s revenue from operation saw a marginal decline to Rs 1,178 crore during the quarter from Rs 1,190 crore reported in the same quarter of the previous fiscal year.

In its regulatory filing, the company said, “Revenue from operations has remained flat as there was reduction in gas cost due to revised pricing formula approved by Government of India with effect from 8 April 2023, the benefit of which ATGL passed on to its consumers, resulting in decrease in sales price.”

CNG sales of the company rose by 20% to 136 million standard cubic meters(MMSCM), whereas the piped gas supplies dropped by 3% to 77 MMSCM.

The company’s EBITDA saw a healthy growth of 23% to Rs 290 crore against Rs 236 crore reported in the corresponding quarter of the previous financial year.

During the quarter, the company added 23 new CNG stations and raised its total network strength to 483. It has also increased its total piped natural gas network to 7.56 lakh by adding 51,801 homes to its network during the quarter.

At 12:21 pm, the shares of Adani Total Gas were trading 1.80% below at Rs 554.15 on NSE.