Capitaline

Results 02-Aug-23

Analysis

Adani Total Gas

NP up 9%

Adani Total Gas consolidated net sales increased 1.32% to Rs 1056.06 crore in Q1Fy24 compared to Q1FY23. CNG Volume increased by 18% YoY on account of reduction in CNG prices along with network expansion of CNG stations while PNG Volume has decreased by 6% YoY due to lower offtake by consumers due to lower alternative fuel prices. Despite increase in volume, Revenue from operations has increased marginally due to reduction in sales price as ATGL passed through the reduction in Domestic Gas prices as per the revised pricing formula approved by Government of India w.e.f. 8th April 2023. Despite increase in volume, the cost of gas has remained flat due to lower domestic gas price.

Operating profit margin has jumped from 20.97% to 23.46% on account of higher volume, cost optimization and maintaining a balanced price strategy., leading to 13.36% rise in operating profit to Rs 247.74 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 68.92% to 67.54%. Employee cost increased from 1.02% to 1.40%. Other expenses fell from 9.18% to 7.59%.

Other income fell 19.10% to Rs 7.37 crore. PBIDT rose 12.06% to Rs 255.11 crore. Provision for interest rose 26.68% to Rs 23.69 crore.

PBDT rose 10.75% to Rs 231.42 crore. Provision for depreciation rose 37.89% to Rs 32.75 crore.

Profit before tax grew 7.27% to Rs 198.67 crore. Share of profit/loss was 400% higher at Rs 2.65 crore. Provision for tax was expense of Rs 51.1 crore, compared to Rs 47.37 crore. Effective tax rate was 25.38% compared to 25.50%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 8.56% to Rs 150.22 crore.

Promoters’ stake was 74.80% as of 30 June 2023 ,compared to 74.80% as of 30 June 2022.

“In the beginning of the quarter effective April 2023, CGD industry saw key support from Government of India notifying the stability of APM prices with floor and cap which helped ATGL to reduce the prices of PNG and CNG making it more affordable for end consumers to opt for cleaner fuel as their preferred choice. Despite challenges emerging from softening of alternate fuels, Team ATGL achieved excellent physical and financial results with significant increase in infrastructure reach, augmentation of volume and highest ever EBIDTA. With the continued constructive policy support to CGD industry coming from Government, we are confident the further growth in infra numbers and volume shall gain momentum in spreading CGD network across all our 33 Geographical Areas,” said Mr. Suresh P Manglani, ED & CEO of Adani Total Gas. “With the consumer centricity approach, we have expanded our horizons by increasing our reach/footprint in core CGD business and beyond natural gas through setting up EV charging stations, converting waste to CBG and exploring to set up LNG stations for long haul heavy vehicles, offering a wider range of sustainable energy solutions to all our consumers.”

Full year results analysis

Net sales of Adani Total Gas has increased 44.12% to Rs 4378.19 crore on account of higher volume coupled with increase in sales price. CNG Volume has increased by 28% YoY on account of network expansion of CNG stations. PNG Volume decreased by 13% YoY due to lesser offtake of gas largely by Industrial consumers owing to high PNG prices resulting from higher gas cost.

Operating profit margin has declined from 25.45% to 19.87%, leading to 12.53% rise in operating profit to Rs 869.87 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.63% to 70.47%. Employee cost decreased from 1.80% to 1.27%. Other expenses fell from 9.20% to 8.37%.

Cost of gas increased by 62% majorly on account of replacement of APM price with UBP price for CNG and Domestic PNG. However UBP price gas shortfall was reduced and there was also increase in R-LNG price which is procured for Industrial and Commercial segment

Other income fell 11.20% to Rs 36.85 crore. PBIDT rose 11.32% to Rs 906.72 crore. Provision for interest rose 48.74% to Rs 78.43 crore. Loan funds rose to Rs 1,422.09 crore as of 31 March 2023 from Rs 1,035.16 crore as of 31 March 2022. Inventories rose to Rs 90.96 crore as of 31 March 2023 from Rs 76.78 crore as of 31 March 2022. Sundry debtors were higher at Rs 269.78 crore as of 31 March 2023 compared to Rs 186.55 crore as of 31 March 2022. Cash and bank balance rose to Rs 371.84 crore as of 31 March 2023 from Rs 34.32 crore as of 31 March 2022. Investments rose to Rs 682.26 crore as of 31 March 2023 from Rs 633.92 crore as of 31 March 2022

PBDT rose 8.73% to Rs 828.29 crore. Provision for depreciation rose 36.71% to Rs 113.1 crore. Fixed assets increased to Rs 3,919.35 crore as of 31 March 2023 from Rs 2,870.39 crore as of 31 March 2022. Intangible assets increased from Rs 33.11 crore to Rs 34.16 crore.

Profit before tax grew 5.32% to Rs 715.19 crore. Share of profit/loss was 266.03% higher at Rs 17.35 crore. Provision for tax was expense of Rs 186.05 crore, compared to Rs 174.38 crore. Effective tax rate was 25.40% compared to 25.50%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 7.28% to Rs 546.49 crore.

Equity capital stood at Rs 109.98 crore as of 31 March 2023 to Rs 109.98 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 74.80% as of 31 March 2023 compared to 74.80% as of 31 March 2022.

The scrip trades at Rs 658

Adani Total Gas : Consolidated Results
Particulars	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	1,056.06	1,042.35	1	4,378.19	3,037.81	44
OPM (%)	23.5	21.0		19.9	25.5
OP	247.74	218.55	13	869.87	773	13
Other Inc.	7.37	9.11	-19	36.85	41.5	-11
PBIDT	255.11	227.66	12	906.72	814.5	11
Interest	23.69	18.7	27	78.43	52.73	49
PBDT	231.42	208.96	11	828.29	761.77	9
Depreciation	32.75	23.75	38	113.1	82.73	37
PBT	198.67	185.21	7	715.19	679.04	5
Share of Profit/(Loss) from Associates	2.65	0.53	400	17.35	4.74	266
PBT before EO	201.32	185.74	8	732.54	683.78	7
EO Income	0	0	-	0	0	-
PBT after EO	201.32	185.74	8	732.54	683.78	7
Taxation	51.1	47.37	8	186.05	174.38	7
PAT	150.22	138.37	9	546.49	509.4	7
Minority Interest (MI)	0	0	-	0	0	-
Net profit	150.22	138.37	9	546.49	509.4	7
EPS (Rs)*	#	#		5.0	4.6
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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