Capitaline

Results 04-Aug-22

Analysis

Adani Total Gas

Combined CNG and PNG volume increased 31%

Adani Total Gas consolidated net sales increased 110.86% to Rs 1042.35 crore in Q1FY23 compared to Q1FY22 on account of higher volume coupled with increase in sales price.

CNG Volume has increased by 61% to 109 mmscm on account of addition of new CNG stations while PNG Volume has increased by 3% to 74 mmscm due to addition of new customers. The company commissioned 15 new stations during the quarter. Total CNG Stations has now increased to 349. The company added 32,224 new connections in Q1FY23. Total PNG home connection is at 5.96 lakhs. Industrial & Commercial connections increased to 5,885 with 209 new industrial and commercial connections. Combined CNG and PNG volume increased 31% to 183 mmscm.

Operating profit margin has declined from 41.90% to 20.97%, leading to 5.52% rise in operating profit to Rs 218.55 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 43.83% to 68.92%. Employee cost decreased from 2.37% to 1.02%. Other expenses fell from 11.88% to 9.18%.

For Q1 FY23, there has been significant increase in APM Price, R-LNG prices, as well as lower allocation of APM gas during the quarter which has impacted the gas cost as well as the gross margins.

ATGL has calibrated its retail price revisions to balance the interest of its consumers and its shareholders from the impact of sudden spurt in gas purchase price. Given the challenges of shortfall in APM gas allocation to CGD entities, MoPNG has notified revision in making APM allocation and pricing policy. Now CGDs are provided gas allocation upto 102.5% basis the previous quarter average consumption instead of earlier 6-month average. This will benefit CGDs in getting better allocation of APM gas. Further, APM gas will be available at Unified Base Price which will be notified on every 1st of calendar month.

Other income rose 10.69% to Rs 9.11 crore. PBIDT rose 5.72% to Rs 227.66 crore. Provision for interest rose 65.63% to Rs 18.7 crore.

PBDT rose 2.41% to Rs 208.96 crore. Provision for depreciation rose 27.76% to Rs 23.75 crore.

Profit before tax down 0.13% to Rs 185.21 crore. Share of profit/loss was 87.32% lower at Rs 0.53 crore. Provision for tax was expense of Rs 47.37 crore, compared to Rs 47.06 crore. Effective tax rate was 25.50% compared to 24.82%.

Net profit attributable to owners of the company decreased 2.95% to Rs 138.37 crore.

Promoters’ stake was 74.80% as of 30 June 2022 compared to 74.80% as of 30 June 2021.

CNG standalone sales volume has increased by 33% to 101 mmscm in Q4FY22 while PNG standalone sales volume fell 2% to 89 mmscm. Combined CNG and PNG sales volume increased 14% to 189 mmscm

“It has been a challenging scenario for the CGD industry with significantly high input gas prices mainly due to geopolitical factors as well as supply shortages across the globe, which are likely to continue in the near future. ATGL has calibrated increase in its sales price balancing the interest of its consumers with the sudden spurt in gas prices.” said Mr Suresh P Manglani, CEO of Adani Total Gas. “Team ATGL has been resilient in delivering on infrastructure front by crossing 6 lakhs PNG consumers and added another 15 CNG stations, totalling to 349 CNG stations across all our locations. On the financial front, with 31% growth in volumes ATGL was able to sustain its profitability number by optimizing its opex. ATGL has been focussing on creating infrastructure so that it can be future ready to serve its large consumer base and contribute towards the nation’s journey to a gas-based economy.”

Full year results analysis

Net sales of Adani Total Gas have increased 79.16% to Rs 3037.81 crore. Operating profit margin has declined from 41.54% to 25.45%, leading to 9.75% rise in operating profit to Rs 773.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 45.42% to 63.63%. Employee cost decreased from 3.04% to 1.80%. Other expenses fell from 10.03% to 9.20%.

Other income fell 6.45% to Rs 41.5 crore. PBIDT rose 8.79% to Rs 814.5 crore. Provision for interest rose 30.26% to Rs 52.73 crore. Loan funds rose to Rs 1,035.16 crore as of 31 March 2022 from Rs 529.12 crore as of 31 March 2021. Inventories rose to Rs 76.78 crore as of 31 March 2022 from Rs 52.01 crore as of 31 March 2021. Sundry debtors were higher at Rs 186.55 crore as of 31 March 2022 compared to Rs 103.68 crore as of 31 March 2021. Cash and bank balance rose to Rs 34.32 crore as of 31 March 2022 from Rs 10.87 crore as of 31 March 2021. Investments rose to Rs 633.92 crore as of 31 March 2022 from Rs 417.33 crore as of 31 March 2021

PBDT rose 7.56% to Rs 761.77 crore. Provision for depreciation rose 32.33% to Rs 82.73 crore. Fixed assets increased to Rs 2,878.01 crore as of 31 March 2022 from Rs 2,050.29 crore as of 31 March 2021. Intangible assets stood at Rs 25.49 crore.

Profit before tax grew 5.17% to Rs 679.04 crore. Provision for tax was expense of Rs 174.38 crore, compared to Rs 159.26 crore. Effective tax rate was 25.50% compared to 25.60%.

Net profit attributable to owners of the company increased 10.06% to Rs 509.40 crore.

Equity capital stood at Rs 109.98 crore as of 31 March 2022 to Rs 109.98 crore as of 31 March 2021. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 74.80% as of 31 March 2022 compared to 74.80% as of 31 March 2021 .

Cash flow from operating activities increased to Rs 735.72 crore for year ended March 2022 from Rs 653.50 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 950.61 crore, compared to Rs 606.43 crore during the year ended March 2021.

The scrip trades at Rs 3334

Adani Total Gas : Consolidated Results
Particulars	2206 (03)	2106 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	1,042.35	494.33	111	3,037.81	1,695.60	79
OPM (%)	21.0	41.9		25.45	41.5
OP	218.55	207.11	6	773	704.32	10
Other Inc.	9.11	8.23	11	41.5	44.36	-6
PBIDT	227.66	215.34	6	814.5	748.68	9
Interest	18.7	11.29	66	52.73	40.48	30
PBDT	208.96	204.05	2	761.77	708.2	8
Depreciation	23.75	18.59	28	82.73	62.52	32
PBT	185.21	185.46	0	679.04	645.68	5
Share of Profit/(Loss) from Associates	0.53	4.18	-87	4.74	-9.13	LP
PBT before EO	185.74	189.64	-2	683.78	636.55	7
EO Income	0	0	-	0	-14.47	-
PBT after EO	185.74	189.64	-2	683.78	622.08	10
Taxation	47.37	47.06	1	174.38	159.26	9
PAT	138.37	142.58	-3	509.4	462.82	10
Minority Interest (MI)	0	0	-	0	0	-
Net profit	138.37	142.58	-3	509.4	462.82	10
EPS (Rs)*	#	#		4.6	4.3
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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