Investment of up to Rs. 20,000 crore is planned by Adani Total Gas over the next 8-10 years.

According to a note in the company’s FY23 annual report, Adani Total Gas Ltd (ATGL), a joint venture between Adani Group and French energy behemoth TotalEnergies, plans to invest 18,000-20,000 crore in the next 8-10 years to build infrastructure for its gas distribution business.

The company plans to use the funds to build new CNG stations and extend its pipeline system to better serve its present customer base of 460 stations and 7 lakh households that use piped cooking gas.

At addition to commissioning one of India’s largest biomass facilities at Barsana, Uttar Pradesh, with an initial capacity of 600 TPD, Parikh has stated that his company plans to construct more than 3,000 EV charging sites across the country.

The Indian government plans to boost natural gas’s portion of the country’s energy mix from its current 6% to 15% by 2030, giving the corporation reason for optimism about the future of gas in India.

In FY2023, ATGL will have invested at least 1,150 crore on new infrastructure.

TotalEnergies has put its $4 billion investment in Adani New Industries Ltd. (ANIL) on hold as it awaits clarity on the claims made against Adani Group by US-based short seller Hindenburg Research on 24 January. This funding would have allowed the company to acquire a 25% interest in ANIL and move closer to its $50 billion capex goal of co-developing green hydrogen production capacity in India.

According to the annual report, ATGL has a debt-equity ratio of 0.47 and a leverage ratio of 1.1.

Currently, the value of ATGL on the stock market is 72,054 crore. Shares of the corporation have underperformed the market overall over the previous year, falling by 72%. This decline was precipitated in large part by the publication of Hindenburg’s critical report on the conglomerate.

ATGL’s net profit increased by 5% in FY2023 to 530 crore, while revenue grew by 46% to 4,683 crore.

As of 31 March 2023, ATGL had a return of 21.61% on its capital employed and a return of 19.74% on its net value.

From 8th April, 2023 (with a nominal $0.25/MMBTU increase applied on floor and ceiling prices in two years), the government will cap the APM price at $6.5/MMBTU (million British thermal units) and set the floor price at $4/MMBTU (million British thermal units), according to the company’s most recent annual report.

“These initiatives will ensure a stability in domestic gas prices and get India beyond the gas volatility of FY 2022-23,” the business said.

Adani Total Gas stock rose by 2% on Wednesday, finishing the day at 654.50 apiece on the NSE.