Capitaline

Results 03-Feb-22

Analysis

Adani Total Gas

Sales volume up 25% in Q3FY22

Adani Total Gas consolidated net sales increased 78.04% to Rs 883.27 crore in Q3FY22 compared to Q3FY21. Operating profit margin has declined from 42.89% to 23.02%, leading to 4.44% decline in operating profit to Rs 203.32 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.28% to 68.77%. Employee cost decreased from 2.26% to 1.50%. Other expenses fell from 7.67% to 6.76%.

Other income fell 8.10% to Rs 8.06 crore. PBIDT fell 4.58% to Rs 211.38 crore. Provision for interest rose 32.91% to Rs 13.45 crore.

PBDT fell 6.38% to Rs 197.93 crore. Provision for depreciation rose 30.55% to Rs 20.98 crore.

Profit before tax down 9.41% to Rs 176.95 crore. Provision for tax was expense of Rs 45.37 crore, compared to Rs 50.21 crore. Effective tax rate was 26.23% compared to 25.61%.

Net profit attributable to owners of the company decreased 12.52% to Rs 127.61 crore.

CNG sales volume has increased by 47% to 101 mmscm in Q3FY22 while PNG sales volume rose 7% to 91 mmscm. Combined CNG and PNG sales volume increased 25% to 192 mmscm

Promoters’ stake was 74.80% as of 31 December 2021 compared to 74.80% as of 31 December 2020.

For year-to-date (YTD) results analysis

Net sales of Adani Total Gas have increased 82.32% to Rs 2025.79 crore on account of higher volume coupled with increase in sales price. Operating profit margin has declined from 44.97% to 31.68%, leading to 28.46% rise in operating profit to Rs 641.86 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 42.12% to 56.76%. Employee cost decreased from 3.32% to 1.82%. Other expenses rose from 9.68% to 9.77%.

Other income rose 24.38% to Rs 31.32 crore. PBIDT rose 28.27% to Rs 673.18 crore. Provision for interest rose 28.49% to Rs 37.43 crore.

PBDT rose 28.25% to Rs 635.75 crore. Provision for depreciation rose 32.77% to Rs 60.25 crore.

Profit before tax grew 27.80% to Rs 575.50 crore. Share of profit/loss was 93.03% higher at Rs -0.56 crore. PBT before EO was up 30% to Rs 74.94 crore. The company reported nil EO items compared to EO expense of Rs 9.99 crore in 9MFY21. During the year ended 31st March, 2021, the Group received an order dated 28th August, 2020 from the Hon`ble Supreme Court of India with respect to Service Tax liability on gas connection income pertaining to FY 2008-09. Pursuant to the order, the Group has recognized and paid Rs 9.99 crore towards service tax liability including interest and penalty thereon. PBT after EO was up 33% to Rs 574.94 crore.

Provision for tax was expense of Rs 146.63 crore, compared to Rs 113.2 crore. Effective tax rate was 25.50% compared to 26.19%.

Net profit attributable to owners of the company increased 34.23% to Rs 428.31 crore.

CNG sales volume has increased by 71% to 260 mmscm in 9MFY22 on account of addition of new CNG stations and strong recovery of economic activity while PNG sales volume rose 26% to 248 mmscm due to addition of new customers and recovery of economic activity. Combined CNG and PNG sales volume increased 45% to 507 mmscm

“It is heartening to receive Letters of Intent (LOIs) from PNGRB for winning 14 new Geographical Areas in the 11th Round CGD,” said Mr Suresh P Manglani, CEO of Adani Total Gas. “This makes ATGL India’s leading CGD player and enables us to continue playing a key role in realising India’s vision to enhance the share of natural gas in its energy basket from 7.6% to 15% by 2030. In Q3FY22, despite a significant increase in gas prices and lower allocation of APM gas, Team ATGL has again delivered an excellent financial and operational performance with EBIDTA of Rs 211 crore, addition of 43 new CNG stations, surpassing of 5.3 lakh PNG home connections and connecting to 5,453 PNG industrial and commercial consumers. Overall, it has been yet another outstanding quarter for ATGL.”

Promoters’ stake was 74.80% as of 31 December 2021 compared to 74.80% as of 31 December 2020.

Operational Highlights 9MFY22 (Standalone Y-o-Y)

§ Commissioned 70 New Stations, total CNG Stations now increased to 287

§ Added 52,611 new connections, total PNG home connections surpassed 5.3 lakh mark (5.31 lakh)

§ Industrial & Commercial connections increased to 5,453 with 487 new industrial and commercial connections

§ Completed 4,285 Inch Km of steel pipeline in new GAs allotted in 9th and 10th rounds

§ Combined Exit Volume increased to 2.20 MMSCMD in Q3 FY22

§ ATGL wins 14 new Geographical Areas comprising 56 districts in 11th Round of CGD Bidding conducted by PNGRB. This makes ATGL India’s largest CGD player

Full year results analysis

Net sales of Adani Total Gas has declined 9.55% to Rs 1695.6 crore. Operating profit margin has jumped from 31.73% to 41.54%, leading to 18.42% rise in operating profit to Rs 704.32 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 56.54% to 45.42%. Employee cost increased from 2.53% to 3.04%. Other expenses rose from 9.20% to 10.03%.

Other income fell 0.07% to Rs 44.36 crore. Provision for interest fell 1.39% to Rs 40.48 crore. Loan funds rose to Rs 471.53 crore as of 31 March 2021 from Rs 380.06 crore as of 31 March 2020. Inventories rose to Rs 52.01 crore as of 31 March 2021 from Rs 41.30 crore as of 31 March 2020. Sundry debtors were higher at Rs 103.68 crore as of 31 March 2021 compared to Rs 61.17 crore as of 31 March 2020. Cash and bank balance declined from Rs 89.47 crore as of 31 March 2020 to Rs 10.87 crore as of 31 March 2021. Investments rose to Rs 417.33 crore as of 31 March 2021 from Rs 281.56 crore as of 31 March 2020 .

Provision for depreciation rose 23.31% to Rs 62.52 crore. Fixed assets increased to Rs 2,040.12 crore as of 31 March 2021 from Rs 1,514.58 crore as of 31 March 2020. Intangible assets increased from Rs 25.49 crore to Rs 35.66 crore.

Profit before tax grew 17.95% to Rs 645.68 crore. Share of loss from associate was Rs 9.13 crore compared to share of profit from associate was Rs 8 lakh. PBT before EO was up 16% to Rs 636.55 crore.The company reported EO expense of Rs 14.47 crore compared to nil EO items in FY21. PBT after EO was up 14% to Rs 622.08 crore.

Provision for tax was expense of Rs 159.26 crore, compared to Rs 111.16 crore. Effective tax rate was 25.60% compared to 20.30%.

Net profit attributable to owners of the company increased 6.07% to Rs 462.82 crore.

Equity capital stood at Rs 109.98 crore as of 31 March 2021 to Rs 109.98 crore as of 31 March 2020. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 74.80% as of 31 March 2021 ,compared to 74.80% as of 31 March 2020 .

Cash flow from operating activities increased to Rs 653.50 crore for year ended March 2021 from Rs 492.40 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 606.43 crore, compared to Rs 441.89 crore during the year ended March 2020.

The scrip trades at Rs 1871

Adani Total Gas : Consolidated Results
Particulars	2112 (03)	2012 (03)	Var.(%)	2112 (09)	2012 (09)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	883.27	496.11	78	2,025.79	1,111.12	82	1,695.60	1,874.55	-10
OPM (%)	23.0	42.9		31.7	45.0		41.54	31.7
OP	203.32	212.76	-4	641.86	499.65	28	704.32	594.76	18
Other Inc.	8.06	8.77	-8	31.32	25.18	24	44.36	44.39	0
PBIDT	211.38	221.53	-5	673.18	524.83	28	748.68	639.15	17
Interest	13.45	10.12	33	37.43	29.13	28	40.48	41.05	-1
PBDT	197.93	211.41	-6	635.75	495.7	28	708.2	598.1	18
Depreciation	20.98	16.07	31	60.25	45.38	33	62.52	50.7	23
PBT	176.95	195.34	-9	575.5	450.32	28	645.68	547.4	18
Share of Profit/(Loss) from Associates	-3.97	0.74	PL	-0.56	-8.04	93	-9.13	0.08	PL
PBT before EO	172.98	196.08	-12	574.94	442.28	30	636.55	547.48	16
EO Income	0	0	-	0	-9.99	-	-14.47	0	-
PBT after EO	172.98	196.08	-12	574.94	432.29	33	622.08	547.48	14
Taxation	45.37	50.21	-10	146.63	113.2	30	159.26	111.16	43
PAT	127.61	145.87	-13	428.31	319.09	34	462.82	436.32	6
EPS (Rs)*	#	#		#	#		4.3	4.0
Notes
* EPS is on current equity of Rs 109.98 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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