ADANI TOTAL GAS 2023-24 Annual Report Analysis

Mon, 3 Jun

ADANI TOTAL GAS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ADANI TOTAL GAS Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.1% in FY24 as against 21.8% in FY23.
• Depreciation charges increased by 39.6% and finance costs increased by 42.1% YoY, respectively.
• Other income grew by 19.5% YoY.
• Net profit for the year grew by 22.1% YoY.
• Net profit margins during the year grew from 13.4% in FY23 to 16.2% in FY24.

ADANI TOTAL GAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,730	41,330	1.5%
Other income	Rs m	369	440	19.5%
Total Revenues	Rs m	41,098	41,770	1.6%
Gross profit	Rs m	8,872	11,216	26.4%
Depreciation	Rs m	1,131	1,579	39.6%
Interest	Rs m	784	1,115	42.1%
Profit before tax	Rs m	7,325	8,963	22.4%
Tax	Rs m	1,861	2,288	23.0%
Profit after tax	Rs m	5,465	6,675	22.1%
Gross profit margin	%	21.8	27.1
Effective tax rate	%	25.4	25.5
Net profit margin	%	13.4	16.2

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ADANI TOTAL GAS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 18 billion as compared to Rs 22 billion in FY23, thereby witnessing an decrease of -17.5%.
• Long-term debt stood at Rs 9 billion as compared to Rs 3 billion during FY23, a growth of 229.0%.
• Current assets rose 20% and stood at Rs 10 billion, while fixed assets rose 16% and stood at Rs 56 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 66 billion as against Rs 56 billion during FY23, thereby witnessing a growth of 17%.

ADANI TOTAL GAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	29,410	35,803	21.7
Current Liabilities	Rs m	21,934	18,105	-17.5
Long-term Debt	Rs m	2,684	8,829	229.0
Total Liabilities	Rs m	56,453	65,919	16.8
Current assets	Rs m	8,580	10,322	20.3
Fixed Assets	Rs m	47,873	55,596	16.1
Total Assets	Rs m	56,453	65,919	16.8

ADANI TOTAL GAS Cash Flow Statement Analysis

• ADANI TOTAL GAS's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 12.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -777 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -191 million net cash flows seen during FY23.

ADANI TOTAL GAS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	8,529	9,551	12.0%
Cash Flow from Investing Activities	Rs m	-11,666	-7,523	-
Cash Flow from Financing Activities	Rs m	2,947	-777	-
Net Cash Flow	Rs m	-191	1,251	-

Current Valuations for ADANI TOTAL GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,129.1, stands at 191.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 34.7 times, while the price to sales ratio stands at 30.0 times.
• The company's price to cash flow (P/CF) ratio stood at 118.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	37.0	37.6
TTM Earnings per share	Rs	5.0	6.1
Diluted earnings per share	Rs	5.0	6.1
Price to Cash Flow	x	144.6	118.7
TTM P/E ratio	x	180.2	191.2
Price / Book Value ratio	x	87.0	27.4
Market Cap	Rs m	2,558,901	979,848
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ADANI TOTAL GAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 9.0x during FY24, from 10.3x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 18.6% during FY24, from 18.6% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 22.6% during FY24, from 25.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.8% during FY24, from 11.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.4	0.6
Debtors’ Days	Days	3	4
Interest coverage	x	10.3	9.0
Debt to equity ratio	x	0.1	0.2
Return on assets	%	11.1	11.8
Return on equity	%	18.6	18.6
Return on capital employed	%	25.3	22.6

To see how ADANI TOTAL GAS has performed over the last 5 years, please visit here.

ADANI TOTAL GAS Share Price Performance

Over the last one year, ADANI TOTAL GAS share price has moved up from Rs 674.6 to Rs 1,129.1, registering a gain of Rs 454.5 or around 67.4%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for ADANI TOTAL GAS and quarterly results for ADANI TOTAL GAS)