ADANI TOTAL GAS 2021-22 Annual Report Analysis

Wed, 6 Jul

ADANI TOTAL GAS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ADANI TOTAL GAS Income Statement Analysis

• Operating income during the year rose 78.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY22 as against 42.9% in FY21.
• Depreciation charges increased by 32.3% and finance costs increased by 30.3% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year grew by 6.9% YoY.
• Net profit margins during the year declined from 29.4% in FY21 to 17.6% in FY22.

ADANI TOTAL GAS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	16,067	28,693	78.6%
Other income	Rs m	448	415	-7.3%
Total Revenues	Rs m	16,515	29,108	76.2%
Gross profit	Rs m	6,894	7,730	12.1%
Depreciation	Rs m	625	827	32.3%
Interest	Rs m	405	527	30.3%
Profit before tax	Rs m	6,312	6,790	7.6%
Tax	Rs m	1,593	1,744	9.5%
Profit after tax	Rs m	4,720	5,047	6.9%
Gross profit margin	%	42.9	26.9
Effective tax rate	%	25.2	25.7
Net profit margin	%	29.4	17.6

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ADANI TOTAL GAS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 15 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 81.2%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY21, a growth of 14.4%.
• Current assets rose 62% and stood at Rs 4 billion, while fixed assets rose 36% and stood at Rs 41 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 44 billion as against Rs 32 billion during FY21, thereby witnessing a growth of 38%.

ADANI TOTAL GAS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,338	24,162	24.9
Current Liabilities	Rs m	8,082	14,641	81.2
Long-term Debt	Rs m	3,079	3,524	14.4
Total Liabilities	Rs m	32,036	44,153	37.8
Current assets	Rs m	2,233	3,617	62.0
Fixed Assets	Rs m	29,803	40,536	36.0
Total Assets	Rs m	32,036	44,153	37.8

ADANI TOTAL GAS Cash Flow Statement Analysis

• ADANI TOTAL GAS's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion, an improvement of 12.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 billion, an improvement of 47.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 4 billion, an improvement of 992% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 209 million from the Rs -784 million net cash flows seen during FY21.

ADANI TOTAL GAS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	6,535	7,357	12.6%
Cash Flow from Investing Activities	Rs m	-7,705	-11,366	-
Cash Flow from Financing Activities	Rs m	386	4,218	992.4%
Net Cash Flow	Rs m	-784	209	-

Current Valuations for ADANI TOTAL GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,475.0, stands at 539.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 112.7 times, while the price to sales ratio stands at 94.9 times.
• The company's price to cash flow (P/CF) ratio stood at 282.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	14.6	26.1
TTM Earnings per share	Rs	4.3	4.6
Diluted earnings per share	Rs	4.3	4.6
Price to Cash Flow	x	197.8	282.2
TTM P/E ratio	x	224.0	539.4
Price / Book Value ratio	x	30.1	68.6
Market Cap	Rs m	581,167	1,657,606
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ADANI TOTAL GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY22, from 0.3x during FY21. 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 13.9x during FY22, from 16.6x during FY21. 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 declined and down at 20.9% during FY22, from 24.4% during FY22. 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 26.4% during FY22, from 30.0% during FY21. 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 declined and down at 12.6% during FY22, from 16.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.3	0.2
Debtors’ Days	Days	2	2
Interest coverage	x	16.6	13.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	16.0	12.6
Return on equity	%	24.4	20.9
Return on capital employed	%	30.0	26.4

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 918.1 to Rs 2,475.0, registering a gain of Rs 1,556.9 or around 169.6%.

Overall, the S&P BSE SENSEX is up 1.6% over the year.

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

Read: Latest Annual Report Analysis of ADANI TOTAL GAS