Capitaline

Results 30-Jan-24

Analysis

Adani Total Gas

Sales volume increased 13% in 9MFY24

Adani Total Gas consolidated net sales increased 4.58% to Rs 1156.14 crore during Q3FY24 compared to Q3FY23. Operating profit margin has jumped from 20.80% to 24.91%, leading to 25.26% rise in operating profit to Rs 288.03 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 70.19% to 63.75%. Employee cost decreased from 1.50% to 1.44%. Other expenses rose from 7.49% to 9.94%.

CNG Volume has increased by 24% Y-o-Y on account of reduction in CNG prices along with network expansion of CNG stations. PNG Volume has increased by 15% Y-o-Y mainly due to recovery in PNG industrial volume as ATGL offered better price proposition to its consumers.

Other income rose 51.65% to Rs 12.42 crore. PBIDT rose 26.17% to Rs 300.45 crore. Provision for interest rose 397.62% to Rs 31.4 crore.

PBDT rose 16.06% to Rs 269.05 crore. Provision for depreciation rose 24.28% to Rs 38.6 crore.

Profit before tax grew 14.79% to Rs 230.45 crore. Share of profit/loss was 155.71% higher at Rs 5.37 crore. Provision for tax was expense of Rs 59.18 crore, compared to Rs 52.67 crore. Effective tax rate was 25.10% compared to 25.96%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 17.61% to Rs 176.64 crore.

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

“With expansion of CGD infrastructure, together with ceasing opportunity in the areas of emobility, biomass and LNG for Transport & Mining (LTM), ATGL has once again delivered a double-digit growth in volumes of 13% Y-o-Y on nine months basis. The rise in volume coupled with efficient gas sourcing and an ‘eye’ on opex have led to increase in EBIDTA by 20% Y-o-Y in nine months. Company’s present priority is to focus on providing easy access of natural gas in the form of PNG and CNG by fast tracking the infrastructure development in all our Geographical Areas,” said Mr. Suresh P Manglani, ED & CEO of Adani Total Gas. “With our consumer centricity approach, apart from e-mobility and biomass (CBG) we are now also embarking upon LNG for Transport & Mining (LTM). ATGL will provide decarbonizing solutions for various entities and help in reducing carbon footprint. Our strategy will be to offer a wider range of cleaner energy fuel to all our consumers”.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Adani Total Gas has increased 1.36% to Rs 3307.79 crore. Although the overall volume has increased by 13% Y-o-Y, Revenue from operations has increased by 2% due to reduction in gas cost especially APM gas as ATGL passed on the benefit of APM gas price reduction to consumers which resulted into lower sales price. CNG Volume increased by 21% Y-o-Y on account of the reduction in CNG prices along with network expansion of CNG stations. With recovery of PNG Industrial Volume and addition of new PNG connection in domestic and commercial, PNG Volume has increased by 1%.

Operating profit margin has jumped from 20.67% to 24.66%, leading to 20.90% rise in operating profit to Rs 815.70 crore on account of higher volume and balanced price strategy.. Raw material cost as a % of total sales (net of stock adjustments) decreased from 69.75% to 64.76%. Employee cost increased from 1.26% to 1.45%. Other expenses rose from 8.27% to 9.14%.

Other income rose 5.99% to Rs 29 crore. PBIDT rose 20.32% to Rs 844.7 crore. Provision for interest rose 77.83% to Rs 82.37 crore.

PBDT rose 16.25% to Rs 762.33 crore. Provision for depreciation rose 32.50% to Rs 108.97 crore.

Profit before tax grew 13.93% to Rs 653.36 crore. Share of profit/loss was 41.34% lower at Rs 13.68 crore. Provision for tax was expense of Rs 167.5 crore, compared to Rs 148.24 crore. Effective tax rate was 25.11% compared to 24.84%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 11.36% to Rs 499.54 crore.

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

The scrip trades at Rs 1028

Adani Total Gas : Consolidated Results
Particulars	2312 (03)	2212 (03)	Var.(%)	2312 (09)	2212 (09)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	1,156.14	1,105.56	5	3,307.79	3,263.41	1	4,378.19	3,037.81	44
OPM (%)	24.91	20.8		24.66	20.67		19.87	25.45
OP	288.03	229.94	25	815.7	674.7	21	869.87	773	13
Other Inc.	12.42	8.19	52	29	27.36	6	36.85	41.5	-11
PBIDT	300.45	238.13	26	844.7	702.06	20	906.72	814.5	11
Interest	31.4	6.31	398	82.37	46.32	78	78.43	52.73	49
PBDT	269.05	231.82	16	762.33	655.74	16	828.29	761.77	9
Depreciation	38.6	31.06	24	108.97	82.24	33	113.1	82.73	37
PBT	230.45	200.76	15	653.36	573.5	14	715.19	679.04	5
Share of Profit/(Loss) from Associates	5.37	2.1	156	13.68	23.32	-41	17.35	4.74	266
PBT before EO	235.82	202.86	16	667.04	596.82	12	732.54	683.78	7
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	235.82	202.86	16	667.04	596.82	12	732.54	683.78	7
Taxation	59.18	52.67	12	167.5	148.24	13	186.05	174.38	7
PAT	176.64	150.19	18	499.54	448.58	11	546.49	509.4	7
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	176.64	150.19	18	499.54	448.58	11	546.49	509.4	7
EPS (Rs)*	#	#		#	#		4.97	4.63
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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