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ADANI TOTAL GAS 2022-23 Annual Report Analysis

Wed, 28 Jun

ADANI TOTAL GAS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ADANI TOTAL GAS Income Statement Analysis

• Operating income during the year rose 42.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.8% in FY23 as against 27.1% in FY22.
• Depreciation charges increased by 36.7% and finance costs increased by 48.7% YoY, respectively.
• Other income declined by 11.2% YoY.
• Net profit for the year grew by 7.3% YoY.
• Net profit margins during the year declined from 17.8% in FY22 to 13.4% in FY23.

ADANI TOTAL GAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	28,693	40,730	42.0%
Other income	Rs m	415	369	-11.2%
Total Revenues	Rs m	29,108	41,098	41.2%
Gross profit	Rs m	7,777	8,872	14.1%
Depreciation	Rs m	827	1,131	36.7%
Interest	Rs m	527	784	48.7%
Profit before tax	Rs m	6,838	7,325	7.1%
Tax	Rs m	1,744	1,861	6.7%
Profit after tax	Rs m	5,094	5,465	7.3%
Gross profit margin	%	27.1	21.8
Effective tax rate	%	25.5	25.4
Net profit margin	%	17.8	13.4

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ADANI TOTAL GAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 22 billion as compared to Rs 15 billion in FY22, thereby witnessing an increase of 49.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY22, a fall of 23.9%.
• Current assets rose 137% and stood at Rs 9 billion, while fixed assets rose 18% and stood at Rs 48 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 56 billion as against Rs 44 billion during FY22, thereby witnessing a growth of 28%.

ADANI TOTAL GAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	24,162	29,410	21.7
Current Liabilities	Rs m	14,641	21,934	49.8
Long-term Debt	Rs m	3,524	2,684	-23.9
Total Liabilities	Rs m	44,153	56,453	27.9
Current assets	Rs m	3,617	8,580	137.2
Fixed Assets	Rs m	40,536	47,873	18.1
Total Assets	Rs m	44,153	56,453	27.9

ADANI TOTAL GAS Cash Flow Statement Analysis

• ADANI TOTAL GAS's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 16.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 3.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -191 million from the Rs 209 million net cash flows seen during FY22.

ADANI TOTAL GAS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	7,321	8,529	16.5%
Cash Flow from Investing Activities	Rs m	-11,330	-11,666	-
Cash Flow from Financing Activities	Rs m	4,218	2,947	-30.1%
Net Cash Flow	Rs m	209	-191	-

Current Valuations for ADANI TOTAL GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 640.7, stands at 133.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 24.0 times, while the price to sales ratio stands at 17.3 times.
• The company's price to cash flow (P/CF) ratio stood at 388.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	26.1	37.0
TTM Earnings per share	Rs	4.6	5.0
Diluted earnings per share	Rs	4.6	5.0
Price to Cash Flow	x	399.1	388.0
TTM P/E ratio	x	468.3	133.2
Price / Book Value ratio	x	68.6	87.0
Market Cap	Rs m	1,657,606	2,558,901
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 0.4x during FY23, from 0.2x during FY22. 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 10.3x during FY23, from 14.0x during FY22. 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 18.6% during FY23, from 21.1% during FY23. 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 25.3% during FY23, from 26.6% during FY22. 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 11.1% during FY23, from 12.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.2	0.4
Debtors’ Days	Days	2	2
Interest coverage	x	14.0	10.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.7	11.1
Return on equity	%	21.1	18.6
Return on capital employed	%	26.6	25.3

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 down from Rs 2,392.7 to Rs 640.7, registering a loss of Rs 1,752.0 or around 73.2%.

Overall, the S&P BSE SENSEX is up 19.3% over the year.

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