Adani Total Gas Limited — Q1 FY25
Adani Total Gas reported a strong Q1 FY25 with revenue of ₹1,237 crore (+9% YoY) and EBITDA of ₹308 crore (+21% YoY), driven by 17% volume growth (CNG +20%, PNG +10%).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
56%Questions answered2Evaded / deflected8Questions audited
Partial answer
High priority
Why did gross spread decline by ₹1/SCM and what was APM gas availability?
Asked by Kirtan Mehta, BOB Capital Markets
Explained APM reduction and portfolio mix but did not quantify spot LNG benefit or margin impact.
no specific spot LNG usage givenno quantification of margin impact
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Question
So we see that the gross spread has marginally declined this quarter by 1 INR per SCM or so, and primarily because of, I think, the increase in the gas purchase cost. Wanted to understand the underlying dynamics in terms of how was the availability for the priority sectors, the APM gas availability, and were we able to capitalize on the lowest spot LNG opportunity during the year?
Rahul Bhalla, SVP and Regional Head
Yes, there has been a slight impact on our margins because there was a reduction of about 2% in the APM allocation vis-à-vis the previous quarter. But having said that, we have a very diversified portfolio. ... of our overall portfolio, about 50% is APM, 30% is the HPHT ceiling gas, and about 20% is RLNG.
Evasive
Medium priority
What is the annual throughput potential and economics of LNG stations?
Asked by Kirtan Mehta, BOB Capital Markets
Discussed strategic rationale but avoided any specific throughput or margin figures.
no throughput numbers givenno economics comparison with CNG
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Question
I also wanted to understand in terms of what is the annual throughput that's potential to be achieved at the LNG plant, what kind of economics we are seeing relative to the CNG station.
Suresh P Manglani, CEO
Our view is that while we could always see the margins, etc., our view is this is a new fuel which is coming up in this country. ... There is a good case of economics. ... we are hopeful that this traction will come in the next few quarters.
Evasive
Medium priority
What is the revenue and profit potential of biomass and EV businesses?
Asked by Kirtan Mehta, BOB Capital Markets
Provided only qualitative optimism without any concrete financial projections.
no revenue or profit numbers givenonly qualitative outlook
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Question
Would be your new business area is something interesting where I think we do not fully understand the revenue or the profit-generating ability. So color on biomass as well as EV points, if at all you can throw lights on them as well, that would be really great.
Suresh P Manglani, CEO
CBG holds a very good potential in terms of volume as well as on the profitability part. ... On EV, ... we see big numbers coming up in future ... we have formed a separate SPV.
Partial answer
Medium priority
Is CBG production cost cheaper than APM gas or does it need viability funding?
Asked by Kirtan Mehta, BOB Capital Markets
Admitted CBG cost is higher but argued integrated view with fertilizer, no numbers given.
no specific cost comparison numbers
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Question
Basically, just wanted to understand, would the cost of CBG gas production be cheaper than typically the APM gas, or does it need some sort of viability funding to make it sort of useful in this sector?
Suresh P Manglani, CEO
While CBG cost would be definitely higher than what is APM gas, but should we see a long direct match of APM with the CBG price? Answer would be no because answer we need to see the integrated approach, the byproduct which they call fertilizer.
Answered
High priority
Why is operating cost per unit trending up and how should we view it?
Asked by Nitin Tiwari, PhillipCapital India
Provided specific OPEX numbers and explained trend due to new geographies.
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Question
I was just looking at the trend ... there is a general uptrend in operating costs per unit that we see. So any particular reasons, would it be right to understand that as your operations spread in more and more towns, therefore, given that we are sort of front-ending the infra, therefore our operating cost at the moment is going up on a per unit basis? And how should we look at this number going forward?
Parag Parikh, CFO
If you actually go from a trend perspective, you are at an annualized OPEX of about ₹6 per SCM for last year. The first year is slightly short at about ₹5.96. Actually, if you see the quarter results, there has been a minor improvement as far as OPEX is concerned.
Answered
Medium priority
What portion of RLNG is spot vs term contracts?
Asked by Nitin Tiwari, PhillipCapital India
Clearly stated RLNG is primarily term, with spot only for arbitrage.
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Question
So of the 20% that we are sourcing as RLNG, can we have some understanding in terms of how much of that would be spot and how much would be coming from term contracts?
Rahul Bhalla, SVP and Regional Head
RLNG you mentioned is all term in nature. There is no, I mean, you only take spot gas when there is an opportunity to take spot gas in terms of favorable pricing.
Answered
High priority
What is the PNG volume breakdown by domestic, industrial, commercial?
Asked by Nitin Tiwari, PhillipCapital India
Provided specific percentage breakdown of PNG volumes.
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Question
If you can just break up the PNG volume in terms of domestic industrial and commercial offtake for the quarter?
Rahul Bhalla, SVP and Regional Head
So I think if you go by the current quarter, close to about two-thirds, 66% is actually coming from PNG, and the other 34% is coming from PNG. Within the PNG, close to 70% is industrial, about 22%-23% is domestic, and the balance is commercial.
Partial answer
High priority
When will Jalandhar GA start contributing and what is its potential?
Asked by Arya Patel, Emkay Global Financial Services
Gave timeline and qualitative potential but no quantitative potential or MWP plan.
no volume or revenue potential numbersMWP requirements not addressed
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Question
So I just want to understand when will the GA start adding to the numbers of ATGL, as well as what is the potential of the GA? And also, if you can guide on or give a view on how will we be meeting the MWP requirements?
Suresh P Manglani, CEO and Speaker 8
We are going to hear this news within 1.5 months when we are going to commission at least 3-4 CNG stations, and we will start dispensing CNG from Jalandhar. ... we have everything. Takeoff is available.