Adani Total Gas 9M FY23 Results

Volume increased by 10%

PNG Domestic consumers crossed 6.5 lakh

CNG stations increased to 382

Revenue from Operations - INR 3,486 Cr - increase of

EBITDA - INR 702 Cr

Ahmedabad, 9 February 2023: Adani Total Gas Ltd (“ATGL”), India’s leading City Gas Distribution company, announced today its operational and financial performance for the nine months and quarter ended 31st December 2022.

“During the quarter, ATGL has delivered a good performance with its calibrated approach despite the high input gas price scenario. While gas sector has been seeing volatility in prices due to geopolitical issues, we have seen a moderation in the international gas prices in the recent weeks. We are confident that this, coupled with the increase in domestic gas supply and expected increased allocation to the CGD sector, will drive increased demand across both PNG and CNG segments,” said Mr. Suresh P Manglani, CEO of Adani Total Gas. ”Further, in line with our strategy on acceleration and to boost eco system for PNG and CNG in new Geographical Areas (GAs), we have already completed minimum work program for FY24 towards the steel pipeline network in 11 out of 15 of our Geographical Areas awarded in 9th and 10th Round and working with a virtual pipeline in the balance GAs. Similarly, we have also completed the CNG stations required for minimum work program for FY24 in 14 Geographical Areas out of 15 Geographical Areas, for 9th and 10th round GAs to develop an ecosystem in these Geographical Areas”.

Standalone Operational and Financial Highlights: 

Results Commentary 9M FY23 (Y-o-Y)

• CNG Volume has increased by 30% Y-o-Y on account of Customer activities along with network expansion of CNG stations
• PNG Volume decreased by 11% Y-o-Y due to lesser offtake of gas largely by Industrial consumers owing to high PNG prices resulting from higher gas cost.
• Increase of Revenue by 63% on account of higher volume coupled with increase in sales price
• Cost of gas increased by 98% 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.
• In spite of high gas prices, ATGL had taken calibrated approach in maintaining balanced pricing strategy and despite passing on high gas prices to its consumer, ATGL sustained its volume and growth, thereby helping sustain its EBITDA of INR 702 Crs on Y-o-Y basis.
• LNG price indices have lowered toward the end of Q3 and ATGL will continue its effort to have efficient gas sourcing to reduce the impact of volatility in gas prices.

Capital & Leverage Position:

ATGL has a Healthy Balance Sheet with

• Debt-to-Equity ratio at 0.4X
• Net Debt to EBITDA (annualized) is at 0.9X

Further, ATGL has been rated AA- (Stable) by ICRA and has Return on Capital Employed at ~ 20.8% and will continue to focus on maintaining the return ratios.

Other Key Updates:

• Total 32 EV charging points have been made available across multiple locations.
• Laid the foundation stone for Barsana, near Mathura and commence the construction work.
• ATGL has received the “ESG Initiative of the Year” award from ET Energyworld Annual Gas Conclave for its activity under Greenmosphere Initiative working towards Low Carbon Society.
• Continued thrust towards transformation of our ‘Customer Care’ to Customer Delight in terms of launching of 100% online name transfer facility through Mobile App & Website, Online Refund process through Mobile App, Introduction of Indian Local Language Support (Hindi & Gujarati) in Mobile Application , Self-Billing Facility to Customers through Mobile Application and automated IVR which is the first ever of its kind in the CGD industry for delightful customer experience.