ICICI Direct: Adani Gas Posts Stable Q1 Performance
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Adani Gas Ltd. operating revenues fell 56.9% YoY to Rs 206.6 crore in Q1 FY21 due to sharp fall in sales volume during lockdown. Sales volume came in at 0.7 million metric standard cubic meter per day, down 53.6% YoY.
The extended lockdown resulted in a sharp decline of 66.2% YoY in compressed natural gas sales at 0.3 mmscmd. Similarly, piped natural gas sales registered a decline of 40% YoY to 0.4 mmscmd, mainly due to a fall in volumes in the industrial and commercial segment.
Only domestic PNG segment registered growth at approximately 17% YoY. During the quarter, sales increased month on month basis from April lows and were at 1.1 mmscmd by June end.
The management said sales volume further improved in July and were at approximately 1.4 mmscmd. Going forward, we estimate sales volume at 1.4 mmscmd and 2.1 mmscmd in FY21E and FY22E, respectively.
Ebitda for the quarter declined 42.6% YoY to Rs 77.4 crore. Gross margins were strong at Rs 19 per standard cubic meter, up Rs 6.2 per scm YoY due to lower gas prices.
Ebitda/scm was at Rs 12.1/scm, Rs 2.3/scm higher YoY. Reported profit after tax stood at Rs 46.3 crore, down 41.6% YoY.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.