- 04 Nov 2022
- ICICIdirect Research
ADANI TOTAL GAS PROFITABILITY REMAINS FLAT QOQ
ATGL - 730 Change: -1.55 (-0.21 %)News:
Revenue for Q2FY23 was Rs 1190.4 crore, up 73.3% YoY, 7.2% QoQ driven by higher realisation as well as sales volume. EBITDA was at Rs 226.2 crore, down 2.3% YoY (up 3.5% QoQ). Subsequently, reported PAT for the quarter was Rs 139.3 crore, down 12.3% YoY (up 1.1% QoQ)
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ATG had increased CNG and domestic PNG prices in Q2FY23 to pass on increase in pooled gas costs. In the current quarter (Q3FY23E-TD), domestic gas prices increased from US$ 6.1/mmbtu to US$ 8.57/mmbtu for old fields, and that for difficult fields was raised from US$ 9.92/mmbtu to US$ 12.46/mmbtu. Going ahead, the government is planning to set up a committee to review the gas pricing mechanism, which would likely reduce the gas sourcing cost of CGDs. Volume growth coupled with steady margins will be key monitorable in the near term
Impact:
Neutral