Q1-FY25 · Suresh P Manglani
Our view is that for the next many years, actually, and immediately, the LNG is the most suitable available fuel, provided we bring certain advocacies in place as well as certain economics in place.
Adani Total Gas · tone and specificity signals across the available quarters.
Language signals
Our view is that for the next many years, actually, and immediately, the LNG is the most suitable available fuel, provided we bring certain advocacies in place as well as certain economics in place.
We have a very significant amount of HPHT gas in our portfolio. To share with you, of our overall portfolio, about 50% is APM, 30% is the HPHT ceiling gas, and about 20% is RLNG.
We are expecting from day one itself, we have a good CNG volume from there.
Our pass-through has been very calibrated. That's the reason there is a slight dip if you see on the net profit at the end. That is absolutely fine for us as long as we see growth traction is happening in conversion of vehicles.
This is a supply-driven market. We will, to some extent, do a supply-driven. Once supply-driven is put in place, we will expect demand comes up and demand-driven development takes place.
Today, our composition is close to about 65% from the existing geographies, while about 35% is from the newer geographies.
We will ensure to remain as a responsible and prudent utility of Adani Group and TotalEnergies, and we'll make sure that we calibrate the price in a manner that balances the interest of the large consumers.
Even an INR 3 increase in price, INR 3 per kg increase in price of CNG, will actually reduce the benefit from 40% to about 37%, which is still continuing to be extremely attractive for CNG users.
We are very hopeful that the LNG that would be available for 2027 onwards would also be very competitive and could be very near HPHT type levels.
We will be calibrating our pricing pass-through shortly.
Our aim is to widen the volume base, make sure healthy financial outcomes.
We have a very good sourcing team... we have a mix of a portfolio building where we purchase indices, not one single indices.
Despite such challenges, ATGL maintained its growth trajectory, focusing on a customer-centric approach and delivered a robust operational performance with a notable 15% growth in volumes on a year-on-year comparable basis.
We are also preparing ourselves to see that if tomorrow this allocation is not restored, how are we going to be working on a sustainable basis, making sure we balance the interest of end consumer and also produce the good financials and operational results.
The government keeps looking at ways to stabilize and to optimize ATM gas to the CGD segment.
Our main aim is to grow volume, widen consumer base, bring affordability in the consumer hands, and provide operational delightness to the consumers.
We are a partner in prosperity. We don't see only that dealer should make everything from his side.
The industry has been requesting for some sort of connection incentive for taking first-time PNG supply and also consumption-linked incentive... that will boost the actual consumption of natural gas.
Our overriding business principle that safety has to be the precondition to work has laid down a strong foundation in building safe behavior and culture within ATGL.
We are not building for today EV charging points. You see, we are trying to make sure that all strategic location, whether on B2C side, whether B2B side, or tourist places, we should build for the future.
I think combined reading of this should all give you a sense that there is a support which is there for a CGD sector.
Our approach has always been consumer first, and you will see from a volume growth, even during this crisis, hardly there is a 1% here and there of industrial consumer.
We are expecting the same growth which we are currently having in 2025, 2026 in the next financial year. EBITDA will be in the range of same or FCM based on that growth. We are expecting around, we can say INR 1,500 crore of EBITDA.
It's always the game of how you enhance the yield of the same pipe. So while somebody may look at two-year return, somebody may look at three-year return, and we look at a very longer term return.