Adani Total Gas Ltd - Q4FY21 Result Update - YES Securities

Result Highlights

- Revenue: ATGL reported a revenue of Rs 5.8bn (+26% YoY; +18% QoQ), primarily backed by 13% YoY higher volumes and 12% YoY higher realization. The Annual FY21 revenue at Rs 16.9bn, still stood 9.5% YoY lower primarily on 12% YoY lower sales volume for FY21.

- Operating Profits: The operating profits for the 4QFY21 stood at Rs 2.04bn (+22% YoY; -4% QoQ) as Ebitda per unit stood 8% YoY higher but 11% QoQ lower at Rs 12.3/scm.

- Volume: The overall sales volume for the quarter stood at 166mmscm (+13% YoY; +8.5% QoQ), leading to an annual volume of 514mmscm (-12% YoY). The volume in FY21 stood weaker on account of Covid pandemic impacting sales in the 1HFY21. The 4Q CNG sales at 75mmscm reported a 4% YoY and 10% QoQ growth, while PNG sales during the quarter stood at 91mmscm (+21% YoY; +7% QoQ).

- Capex: Capex for FY21 stood at Rs 6bn, with guidance for FY22 between Rs 12- 13bn. Even as management is conscious of Covid 2nd wave but remains confident of adhering to its infrastructure development target. The company is in process of appointing contractors and ordering of long lead items.

View & Valuation: With 41 GAs under its belt, ATGL is without doubt a strong growth story, loaded with the potential for becoming the largest CGD company in the country by sales volume. However in our view stock prices have already moved ahead of fundamentals, factoring in a prognosis for very high rate of growth, over a considerable time period. We continue to retain our Unrated rating.

Shares of Adani Total Gas Ltd was last trading in BSE at Rs.1299.2 as compared to the previous close of Rs. 1265.05. The total number of shares traded during the day was 154873 in over 7248 trades.

The stock hit an intraday high of Rs. 1310.8 and intraday low of 1266.2. The net turnover during the day was Rs. 199208590.

Source : Equity Bulls

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