New Delhi:
ICRA has upgraded the long-term rating of Adani Total Gas to ‘AA’. ICRA has also termed its outlook as ‘stable’. This is attributed to the strengthening financial position of the company due to continuous growth in sales volume. ICRA said, “The company has continued to grow well in FY24 as well.
Increased demand in traditional GAs1 (geographic area 1) as well as company’s presence in new geographies led to increase in the company’s revenue. ICRA has reaffirmed the company’s short-term rating of A1+. According to ICRA, “The company’s long-term demand looks good. The company will benefit from the expansion of the CGD network and new contracts won through its operationalisation.”
What are the challenges facing Adani Total Gas now?
ICRA has identified investment risk and project execution in contracts awarded in 9th, 10th and 11th CGD auction rounds amid challenges facing Adani Total Gas. Apart from this, availability of gas resources to provide industrial PNG at competitive prices and commitments related to joint venture with Indian Oil Adani Gas are also cited as challenges for the company.
In the fourth quarter of FY24, Adani Total Gas reported a jump of 71.54% compared to a year earlier. The company reported a 5.09% increase in revenue in the fourth quarter of FY24 ended in March. Adani’s total gas profit is Rs. 1,165.95 crores was reached.
Let us tell you that Adani Total Limited was earlier known as Adani Gas Limited. Its long-term rating has now been upgraded to AA (stable). The reason for this is believed to be the good financial growth of Adani Total Gas.
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