The shares of one of India’s Largest Private City Gas Distribution Companies gained 10 percent to Rs 1,100.65 per share after the company signed an MoU to decarbonize the supply chain in the business of cement, ports, and logistics.
On Wednesday, Adani Total Gas Ltd shares were quoting at Rs 1,091.45 per share, up Rs 90.85 or 9.08 percent on NSE from the previous close price. The company has a market capitalization of Rs 1,20,038 crore.
Adani Total Gas Limited (ATGL), has signed a Memorandum of Understanding (MoU) with Shigan Quantum Technologies Limited (Shigan), the MoU aims to explore collaboration for decarbonizing the supply chain by creating an ecosystem that will enable transitioning to cleaner fuels
Shigan Quantum Technologies Limited (Shigan) manufactures an alternative fuel system solutions provider for automotive, locomotive, and stationary engine applications.
The primary focus of the MoU for both partners is to adopt natural gas for transportation and mining applications through sustainable solutions for fleet operators, including those deployed by Adani Group companies in sectors like cement, ports, and logistics.
The partnership between the companies will explore developing e-mobility-based solutions for last-mile delivery players and use cases for green hydrogen as fuel for ICE vehicles as well as explore LNG retrofitment solutions for various applications like stationary engines, locomotives, and marine equipment.
Furthermore, based on the allegations made by the Hindenburg on the Adani group, the Supreme Court of India rejected the plea to move the inquiry to the CBI on January 3, 2024, i.e. today, and asked the market regulator SEBI to complete the remaining two probes in three months. Adani Group’s shares surged in today’s trading session as a result of the court decision.
Adani Total Gas shares have gained 65 percent in the last six months. The company’s revenue has declined by 2 percent yearly, from Rs 1,116 crore in Q2FY23 to Rs 1,096 crore in Q2FY24. In the same time frame, the company’s net profit rose by 8 percent, from Rs 160 crore to Rs 173 crore.
Adani Total Gas Limited is in the business of developing city gas distribution (CGD)networks for a continuous supply of piped natural gas (PNG) and compressed natural gas (CNG). The company is co-promoted by the Adani Group and TotalEnergies.
Additionally, ATGL has a joint venture with Indian Oil Corporation, which is also in the business of city gas distribution and has a presence across 19 geographical areas. With these 52 Geographical Areas.
The company’s CNG Volume increased by 19% Y-o-Y on account of the reduction in CNG prices along with the network expansion of CNG stations. while EBITDA has increased by 17% on account of higher volume and a balanced price strategy.
Written by Omkar Chitnis
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