Adani Total Gas Ltd

NSE:ATGL

Earnings Call Transcript 2023-Q3

[Operator]

Ladies and gentlemen, good day, and welcome to the Adani Total Gas Limited Q3 and 9 Months FY '23 Earnings Conference Call hosted by Ventura Securities Limited. [Operator Instructions] Please note that this conference is being recorded.

I would now like to hand over the floor to Mr. Tushar from Ventura Securities Limited. Thank you, and over to you.

[Unknown Attendee]

Thank you. Good day, ladies and gentlemen. On behalf of Ventura Securities Limited, I welcome you all to Adani Total Gas Limited Q3 and 9 Months FY '20 Earnings Conference call. The company is today represented by Mr. Suresh Manglani, Chief Executive Officer; Mr. Parag Parikh, Chief Financial Officer; and Mr. Priyansh Shah, Investor Relations.

I would now like to hand over the call to Mr. Manglani for his opening remarks, post which we can start the questions-and-answer session. Thank you, and over to you, sir.

[Suresh Manglani, executive]

Thank you, Tushar. Good evening, everyone. Let me extend a hearty welcome to all our investors, analysts, funds for taking out their time and participating in today's call on 9 months and Q3 FY '23 results of Adani Total Gas.

As you all know, at ATGL, we adhere to the highest safety standards and safety is a precondition to work. We inculcate a very strong safety culture at ATGL, which helps us to build safe and reliable CGD network across India. With this continued efforts, we are able to maintain 0 fatality rate at ATGL.

The Board of Directors met today and approved the 9 months up into December and Q3 October to December '22, FY '23 results. Let me first give you the highlights on infrastructure front. As I have been stating in previous calls that it is our -- it has been our strategy to accelerate the laying of a steel pipeline and setting up of CNG station.

So I'm very happy to inform you all that as on December 31, 2022, ATGL has achieved 10,500 inch kilometer steel pipeline laying underground, 10,500 inch kilometer. This has certainly enabled us to fast-track the development of our last mile connectivity, which will then help to set up more and more online CNG stations, provide PNG connections to the large number of homes, commercial consumers and industrial. And this actually will boost the PNG and CNG ecosystem.

Also out of 15 geographical areas, which were awarded to us in ninth and tenth round, in 11 geographical areas, we have completed many of our program not only for FY '23, but also for FY '24. On the CNG front, during this 9-month period, we have added 48 new CNG station, which has taken our tally to 382.

382 CNG stations includes 74 stations, which are on CoDo, company-owned-dealer-operated and DoDo dealer-owned-dealer-operated model, which is a trust which we have been always placing to improve the quality of a CNG station farmers. If I add 238 stations, which have been now set up by our JV company, IOAGPL, which is along with our Indian Oil Corporation in 19 geographical area, our footprint across the India now is therefore 610 CNG station.

Again, on the CNG front, Out of the 15 GA rounds which we got from PNGRB in ninth and tenth round, in 14 geographical area, we have completed our minimum work program commitment not only for FY '23, but also for FY '24. This certainly, in our view, will encourage the automotive OEMs to not only develop but also promote newer model and also encourage to their consumers to buy the CNG vehicles.

We also believe that this ecosystem development efforts, which we have taken will motivate, increase and promote the consumers to go for a CNG vehicle and convert their existing vehicle by the new vehicle because now there is a convenience of CNG available in almost every strategic locations in every geographical area.

On the home PNG, that's our thrust area. We have added 92,000 (sic) [ 90,000 ] new homes during this 9-month period on pipe gas. So as on December 31, 2022, 6 lakh 56 thousand consumers in total are enjoying the convenience of PNG on -- directly in their kitchens across all geographical areas. You also know our trust, which we put on our anchor commercial and industrial consumers, hotels, restaurants, SSI and the MSME industries.

During this 9-month period, we have added 614 new industry and commercial consumers, which has taken our total industrial commercial consumer base to 6,290. This is a very -- this gives us a good anchoring for the good volume growth in future as the price moderation we start seeing further.

On an overall basis, in 9 months period, despite the challenges which you all are aware, since all of you are tracking this sector, there has been a significant input price pressure because of this geopolitical issue. Despite all these challenges, ATGL has been able to maintain a double-digit growth of a 10% volume growth during the 9-month period vis-a-vis the corresponding period of 9 months of the previous year.

We do expect and we are seeing some moderation in the prices because of the good storage in the Europe, relatively lesser severe winter with what we are seeing it and then increase in the domestic production, which is coming either on HPHT and otherwise side. So we are expecting that this -- these all developments and also increased allocation of APM gas, which is what we expect, acceptance finally of the Kirit Parikh committee by the Government of India, would certainly be enabler for us to boost the PNG and CNG ecosystem and give volume booster in the coming quarters.

Let me now give you highlights of the financial performance of the company. On the 9-months period, April to December, our revenue were INR 3,486 crores. INR 3,486 crores, up by 63% as compared to corresponding period of 9 months of FY '22. EBITDA increased to INR 702 crores as compared to INR 673 crores of FY '22 corresponding 9 months period. Profit before tax was INR 574 crores, and profit after tax was INR 426 crores for the 9-month period. On the quarterly numbers for Q3, October to December, our revenue was 1,186, INR 1,186 crores, up by 26% as compared to Q3 FY '22.

[technical Difficulty]

[Operator]

Ladies and gentlemen, please stay connected while we connect the management team back on the call. Please go ahead, sir.

[Suresh Manglani, executive]

Yes. So my apologies, I think there were some connectivity issue on the telephone line. I hope that you heard me last. I am repeating on quarterly numbers. If there is anything missed from our side, please do ask, we will repeat it again. So on the quarterly side, as I was saying, our revenue for the Q3, October to December FY '23, was INR 1,186 crores, which is up by 26% as compared to Q3 FY '22. EBITDA grew by 13% at INR 238 crores as compared to INR 211 crores of Q3 FY '22.

Profit before tax for this quarter upto December was INR 201 crores and profit after tax, INR 148 crores. Profit before tax grew by 14%. Profit after tax has grown by 13%. You are all tracking the sector, and you've also been seeing our numbers on a quarter-on-quarter basis. I would like to give you some brief on the -- some of the ratios, our balance sheet is healthy. We have a debt equity ratio at 0.4x.

And the net debt to EBITDA on an annualized basis is also healthy at 0.93, debt equity, 0.4x. And net debt to EBITDA annualized at 0.93x. Our return ratio are also quite healthy at about 20% and we hope to maintain and continue the similar ratios in the future. That is helping us to continue our growth plan on infrastructure development on a fast-track basis. Also, you are aware that recently, we had started -- we have set up 2 SPVs, 1 on e-mobility to take the full benefit of this new opportunity, which is emerging in India and another on the biomass side, the CBG and the organic fertilizers, et cetera.

So I'm pleased to inform you all that in a shorter period of time, while a lot of work has been done on project planning, selection of a site, identification of a B2B partnership. In a shorter period of time, we have already started 32 charge points at 14 locations, including some of the hub where we have close to 2021 charging points at one place itself.

So the 32 charge points have started across various strategic locations in India. And we hope to see a major growth in setting up of more and more charge points and more and more B2B partnership in the near future on EV front. It's areas of thrust from our side besides giving complete focus on CGD areas.

On the biomass side, we have now commenced the construction work on the India's largest biomass project at Barsana, this is a site location close to Mathura in the northern parts of India.

The EPC work has started and we hope to see much more mobilization of labor and equipments in the next 2 to 3 weeks. And our expectation is that we will commission Phase 1 of this plant in financial year '23, '24.

So that's the highlights on CGD, EV, bio, 9 months and quarterly. And I may just touch that on the ESG front as well, ATGL received the ESG Initiative of the Year award from ET Energyworld Annual Gas Conclave. For the activity which our company is doing under the unique initiative of Greenmosphere which is the initiative to create a low-carbon society. And this good work plus several other initiatives on ESG is going on a fast-track basis.

So there is a significant trust from our Board of Directors. There are a lot of policies and compliances, processes are getting approved and all those are being put in place.

On the -- you all are aware that ATGL has been continuously working on providing state-of-art customers' experience. So on that front, we have been continuously delivering the digital tools through our mobile app, My AdaniGas or through our website.

So during this period, we have delivered now a complete state-of-art My AdaniGas app, where customers can take the online registration of a new connection at their home. 100% online name transfer, if you have been selling the property or there is some demise in the family from an owner to the legal here, we can do all in an online basis. Similarly, online refund is possible. complete bouquet of service from billing to query management, all is on the mobile app. Also, the unique feature is this also provides multiple Indian language.

You can interact on English in English, Hindi, Gujarati and many more languages are being developed. Similarly, we have launched a state-of-art, very smart IVR, multiple languages, which is first of its kind in India that a CGD company has launched. We hope to bring many more services to ensure that this whole -- the role of customer care, which a B2C company does, is transformed to customer delight.

So from a care to delight transformation journey has been undertaken by ATGL. And in the next couple of quarters, we hope to see a major transformation taking place on care to delight on the front of our customer services. I would like to acknowledge and be thankful for the continued support and the role played by our shareholders, consumers, dealers, suppliers, business partners, all investors, analysts and the stakeholders who are associated with Adani Total Gas for their trust and journey. Ahead is going to be much more exciting and successful. Thank you very much once again for participating in this call.

[Unknown Attendee]

So we can open the floor for the Q&A.

[Operator]

[Operator Instructions] The first question comes from Kirtan Mehta from BOB Capital Markets.

[Kirtan Mehta, analyst]

A couple of questions from my side. We understand that post notification by government on prioritizing HPHT, prioritizing CGD for a location of HPHT gas on e-auction, some of the CGD companies have received 100% allocation of -- to replace [ remaining ] of the spot gas requirement. Would you share how exactly it has been in case of the Adani Gas, are we getting more allocation out of the HPHT to reach the shortfall in the APM?

[Suresh Manglani, executive]

Yes. So I think then I'm very happy that you are keeping track of this latest development as well. This is one another initiative which government has taken to make sure that CGDs are provided affordable price to gas for even the shortfall, which happens from APM or for the period, even if government gives us 100% gas in the no cut category.

In the APM price there is a shortfall, which could arise because of the growth which is happening during the quarter because numbers are changed in the quarter. So now the HPHT, which is on a higher ceiling basis, there has been a notification of the government, which has actually brought the allocation sequence. So the first sequence is for CNG and domestic PNG for CGD entity. Then goes to fertilizer, then goes to LPG and then goes to power and then it is available to everyone on a proportionate basis. So this has certainly -- as you stated right and you understood it correctly. The first requirement, since the allocation of the volume which is coming is significantly higher as compared to what all CGDs would require at the initial stage as we grow our volumes will grow.

And this is towards the shortfall of from APM on the growth side. So we have also been the benefited in the same manner. This higher ceiling price gas is now being made available to us, of course, during the -- through the bidding only but it is being made available to us, and we have received the -- our requirement in the last bidding round under the ceiling point, the shortfall part. We have also this -- even we have been the benefited of this new policy of the government.

[Kirtan Mehta, analyst]

Thanks for sort of clarifying this. One follow-up on the same [Indiscernible]. This is applicable in the e-auction where the meeting happens at the cut-off price -- but could this also be extended to some of the contracts, which will come out for leading from reliable ONGC?

If there is no sort of the ceiling price -- if the selling price concept is dropped from the bidding, would CGD be able to get allocation out of that? Is it possible to drop the ceiling price clause from the new auctions for the new gass coming out of the Reliance or ONGC?

[Suresh Manglani, executive]

You see when the fields are awarded, at that point of time, you get the classification or the DGH does the classification of the field basis the complexities that this is a high pressurized temperature field or not. Once that field falls under HPHT, the current regime suggests there is a ceiling under the [ PSC, ] it's still the government has prescribed. There is computation methodology of the ceiling part.

And then there is an APM gas for the nominated ONGC field. The remaining part, remaining fields, which are not falling either a nominated field of APM or HPHT, it becomes the open fields where DGH has a process of discovering the price through a bidding, and that could be available on the bidding methodology of who bids the higher, who bids the -- basically bidding parameters. There could be a [Indiscernible] dynamic parameter. There is a pricing of the dynamic parameters.

So I think what we are seeing, this notification is applicable in HPHT. While all of we have read that Kirit Parikh provides report -- provides some guidelines on this HPHT get also getting as a complete freedom of the pricing part, but that we need to see. That period is yet to come. What are the circumstances around that period of time.

But today, we don't see ceiling going away from this HPHT gas or the APM gas because government thrust is what, government thrust is to give major boost to CGD sector. And that's the region government has done Kirit Parikh committee then they have brought new notification on giving CNG, PNG as a first priority, even from the higher sealing gas. So I think we are quite appreciative of the government's process, what they have done, and we are taking the benefit to provide the price benefits to the end consumers as well.

[Kirtan Mehta, analyst]

A couple of more questions, if I -- or should I come back in the queue?

[Suresh Manglani, executive]

I take one more question. And because your question must be benefiting others as well. So we need somebody who keep asking a lot of questions.

[Kirtan Mehta, analyst]

Sure. In terms of the sort of the CNG prices have remained high through the tenure, so has -- does it have any impact on the CNG vehicle conversions that you are seeing? Can you sort of give us the trend of quarterly vehicle conversions this quarter, what is sort of the quarter ago and a year ago?

[Suresh Manglani, executive]

Yes, I think it's a mixed part. I would say while when you see our number when you analyze IR presentation, et cetera, has been given, there is a good growth in the CNG volume. But that we need to see in terms of the number of stations we have added. So if you ask us, yes, the high gas prices to some extent, has then [Indiscernible] the conversion of the CNG vehicle.

The way we used to see the tempo of people getting motivated to convert the vehicle, there used to be a rush on conversion, that kind of things have moderated down, but I think people have now seen that there is going to be further moderation of a price once the Kirit Parikh report comes into effect after the government approvals. I think people are keeping the faith in this CNG vehicle process. There is some temporary, as I said, you asked, is the dampening is there on the conversion side.

But if you see the OEM data from Maruti and others, you would find, in fact, the number of vehicle, new vehicles sold in CNG's highest ever this year. So conversion could be slightly lesser. But the number of vehicles sold has come out very well from OEMs. So overall, I think we are still seeing a good growth. The contributory part, I would say, while prices are slightly higher, but the infrastructure, which has got developed and which has provided the convenience to the consumer, I think, has added the motivation to the consumers to go for CNG.

[Operator]

The next question comes from Yogesh Patil from Centrum Broking.

[Yogesh Patil, analyst]

Congratulations for the good set of numbers, especially in a higher input gas price scenario, your company posted a better EBITDA margin. First question related to volume. [indiscernible] PNG volumes, any specific reason?

[Suresh Manglani, executive]

Yes. So Yogesh, I think, first of all, again, I'm happy that you are the regular participant of our call. So keep asking good tough questions from us like the way you asked now because it helps the people who have been regularly participating.

See the PNG part is the -- our volumes have slightly declined in this quarter also in the last 9-month period also on the industrial side. If you see out of the 4 segments, there has been a very good growth on CNG side, on home PNG and on commercial has been excellent growth. Industry consumers because of the import gas prices, which have gone up, whatever we could do from our side and calibrating the prices is still as a constant, we need to pass through these high prices, which actually made it -- it is difficult for industrial consumers because the alternate fuel prices of the fuel oil, even the propane, the LPG, LSHS, some [Indiscernible] even the biomass being used by the people brought the pressure on us on the volume side.

We have been working with the consumers. Many consumers are either using partly or some people have moved out. But -- they are also looking forward. It is not the complete lost of faith. They are looking forward to return as early as possible once price moderation happens. And this we are seeing now there is a price moderation which we are seeing in our portfolio.

We hope to bring this volume back, how much will come, we'll see in this month, March and the next quarter when we report to you. But yes, there is a volume loss on industrial consumer side because of the premium which their customers have to pay for using natural gas vis-a-vis the alternate fuel they're using it. So that's the response which I would say I hope. Are there any supplementary question, please ask.

[Yogesh Patil, analyst]

Let me continue with the same part. Now as you mentioned that the PNG industrial prices or import gas cost for the PNG industrial prices are coming down. So you must be moderating your PNG industrial prices. At the same time, what we are seeing the alternate fuel prices like the LPG and the propane are authorizing.

So how the response you are seeing from the PNG industrial consumers, whether they want to come back? Or do you think that the -- they have already set up the LPG consumption infrastructure at their gate, and they can switch at any point of time when there would be an opportunity.

So the question is quite simple. What is the current trend going forward as the future prices are indicating from the Saudi side, that are already gone up? I mean, at least for the March month, it would be in the range of $750 per tonne for the propane. And even for the April, it is also suggesting close to $700 per tonne. So what kind of a response you are getting that the consumers are coming back or they will hold for a certain period and then they will come back?

[Suresh Manglani, executive]

So Yogesh, this is the benefit of attending multiple investor calls of different companies that you are also having a full understanding of alternate fuels. And that's a very good thing.

No, I think that's our analysis also, our gas sourcing team and the business development team have a similar understanding. And from first March, we do expect, I think, prices of alternate fuel going up, in particular, LPG and propane. I'm sure even [Indiscernible] is going up. So that we are seeing already the interest which is coming back from our consumers. As I said to you that faith has not been lost. It still the faith is there, people have desired to use natural gas because once you use natural gas, you used to become the kind of in a [Indiscernible] and the efficiency and the kind of a quality which you produce, people want to come back at the earliest.

So you are absolutely right. Once this price is -- one is that we will be moderating some prices, which we are already doing it. We are also coming out with certain marketing intervention on providing carbon footprint incentives to the industrial consumers above certain volume. So whatever our BD team could do, they are also doing in talking in discussion with the consumers.

At the same time, this price of the alternate fuel going up will certainly boost volume. This is what is our expectation. And currently, our bidding team, in fact, is doing a very deep dive assessment of which consumers could be brought in very quickly. So we are also expecting a good volume booster sometime maybe next -- this fortnight coming fortnight or going forward in the March onwards, there would be a good booster because the 2 steps, our moderation [Indiscernible] going up, the gap will be bridged significantly. So you are absolutely right on that front.

[Yogesh Patil, analyst]

Yes. Sir, if possible, if you provide PNG volume breakup in terms of domestic, commercial and industrial

[Suresh Manglani, executive]

Yes, yes. They are in the numbers. I think...

[Parag Parikh, executive]

It's not there in the number but...

[Suresh Manglani, executive]

But I will give you the numbers.

[Parag Parikh, executive]

Yogesh, in terms of our overall numbers, our breakup this time in the quarter is about 60% plus on CNG, while close to 38%, 39% of PNG. Within that, 70% is industrial, 22% is domestic and the balance is commercial. This, of course, as you are aware, this breakup who was anywhere -- from CNG to PNG who was anywhere between 55% to 60% and the balance [Indiscernible] on PNG. And industrial, of course, all along, has been dominating to close to 70%, 75%.

[Yogesh Patil, analyst]

Okay. So sir, next question is again related to input cost of gas. So on the sequential basis, the input cost of gas has hardly gone up despite 40% APM gas price hike in October 2022. Any reason?

[Parag Parikh, executive]

Could you repeat the question, please?

[Yogesh Patil, analyst]

Yes, sir. Am I audible?

[Parag Parikh, executive]

Yes, yes.

[Yogesh Patil, analyst]

Yes. So sir, my question is input cost of gas, first of all. So if we see that sequentially, the input cost of gas has hardly gone up. However, we have seen the 40% jump in APM gas prices during October 2022. So any specific reason?

[Parag Parikh, executive]

Which number -- our number you're referring?

[Yogesh Patil, analyst]

Yes, sir. Yes, sir, your numbers only. So let me tell you in detail. So Q2 FY '23 overall cost of gas in rupees per SCM is INR 40.6 However, in Q3, the number hardly inched up to the INR 41.7. So my question is simple. The input cost of a gas hardly gone up by INR 1 per SCM. But if we see the APM gas prices gone up by 40%.

[Suresh Manglani, executive]

But you need to see that when you get the APM price you are seeing, it is not the price which has been reflected. I will be giving you more detail but it is not alone, pure APM price. This is actually a blended price finally for the customers, which we are catering, which will also include when we were not getting this high ceiling price was also including the RLNG, which we need to bridge.

And that RLNG will be someone spot and some will be coming from our other portfolio. So that will add up to the cost because there was -- last time, I think there was an 11% shortfall was. Last time, we were 6% shortfall and this time is -- last time shortfalls was?

[Parag Parikh, executive]

6%.

[Suresh Manglani, executive]

6%. This time shortfall is 11%. So that -- but the bridge has been happening is through other domestic gas. So I think these dynamics will work in our cost competition of the prices when a weighted average unit comes in. When you are seeing that 8.57, it has remained $8.57, but allocation percentages have changed, the bridging mechanism has changed from RLNG to perhaps some [Indiscernible] and some domestic here. So all this will bring the -- coincidently, prices have [Indiscernible] cost has come to a similar point. Is it Rahul?

[Parag Parikh, executive]

If you reconnect, Yogesh, I think when we have been reporting even the APM shortfall that was happening in the earlier quarters, if you go back to our numbers of March '22 and then move to June, September subsequently, our APM shortfall at 1 point of time that time we reported was almost close to 23%. So that APM shortfall, which was being bridged in a manner has been substituted by now APM with APM allocation being much higher. It was short by 6% to 11% in the last 2 quarters, but at that expensive price. Rahul, would you like to add anything?

[Rahul Bhatia, executive]

Just one last thing. When we look at this quarter, then the bridging gas, which is RLNG, there was a very different price in this quarter as well as when you look at the last quarter. In this winter, the RNG costs were fairly tempered, whereas in the last winter, they were fairly high. So that was also a factor which acted upon the overall gas cost.

[Suresh Manglani, executive]

[Foreign Language]

[Yogesh Patil, analyst]

[Foreign Language] No, no, sir, so the bottom line question is very simple. What was your Q2 priority segment cost -- input cost of gas versus Q3. So I think that will give me -- that will provide me a clear-cut answer, if possible?

[Suresh Manglani, executive]

Yes. Let Rahul [Indiscernible]. Rahul will give you the answer.

[Rahul Bhatia, executive]

We'll get back to you on this.

[Suresh Manglani, executive]

You be there. I think he's just going to give the response.

[Yogesh Patil, analyst]

Sure, sir. And the last question from my side. As you mentioned that the CNG vehicle additions are still at a good run rate. But just wanted to know from your side, can you please throw some light on the conversion of commercial vehicles to the CNG or additions? And if you give us an idea about the conversion cost of commercial diesel vehicle into the CNG, so any thoughts from your side?

[Suresh Manglani, executive]

Rahul, Yogesh is asking you some idea on the conversion of commercial vehicle and CNG.

[Rahul Bhatia, executive]

Conversion of commercial vehicles on CNG. Yes. as Sureshji mentioned, there has been a slight tempering for the last few months compared to about a year back. But we are seeing a lot of activity in the market, a lot of keen interest, and we are -- we have launched various incentives and marketing schemes. So we are very hopeful that as soon as the Kirit Parikh committee gets implemented, we would see a very interesting and traction going forward that we saw almost about a year back.

[Suresh Manglani, executive]

He's asking any idea on conversion cost?

[Rahul Bhatia, executive]

Conversion cost of...

[Suresh Manglani, executive]

Of commercial vehicle.

[Rahul Bhatia, executive]

Generally, commercial vehicles are not converted so much just the OEM vehicles which are more used for CNG.

[Operator]

The next question comes from Harsh Maru from Emkay Global.

[Harsh Maru, analyst]

My first question would be on the performance of IOAGPL for the quarter. So if you could throw some light on why the share of JV was like dropped significantly to about INR 2 crores vis-a-vis about INR 20 crores cost of gas.

[Suresh Manglani, executive]

Yes, yes, yes. Parag, you want to answer?

[Parag Parikh, executive]

So Harsh, thank you, thank you for taking this up. IOAGPL during the second quarter had also made a marginal profit as far as selling off of gas was concerned. And to that extent, that was being reported in the quarter of September, which in the course of December has not similarly been reported.

And hence, you see a drop as far as the December quarter numbers are concerned compared to the September quarter. As far as in terms of its volumes are concerned, and volumes have continued to grow. Purely from a volume perspective, from a quarter-to-quarter comparison, the volumes have actually grown significantly to almost 25%. Whilst in the immediate preceding quarter to the succeeding quarter, it has grown by 3%.

[Harsh Maru, analyst]

Okay. And just one more question on the finance cost. So does it -- like a sharp decline in finance costs on a sequential basis and also on a year-on-year basis. So any thoughts on that?

[Parag Parikh, executive]

So if you look at the 9-month cost, the 9-month cost continue to be a little bit on parity. In fact, they're slightly higher. As far as particularly the quarter is concerned, some of the loans that we have been procuring from time to time. Some of those are being used for CapEx. And since they've been used for CapEx, the equivalent interest component has been capitalized. But on an overall position as far as our debt is concerned, overall, debt stands at close to [ INR 955 crores ] as far as ATGL is concerned.

[Harsh Maru, analyst]

And what would be the cash balance as of December?

[Parag Parikh, executive]

Cash balance as of December, it will be close to [ INR 383 crores ].

[Harsh Maru, analyst]

If I may, just one last question. What are the kind of CNG station additions that you are planning in FY '24?

[Suresh Manglani, executive]

CNG station?

[Harsh Maru, analyst]

Yes.

[Suresh Manglani, executive]

Yes. So I think as I stated in my opening remarks, that there is a thrust on developing CNG station, of course, the strategy which we have developed is now, we are improving the quality of the format, more and more Dodo station will be added, some very strategic location, we could add CoDo station.

[Technical Difficulty]

[Operator]

Ladies and gentlemen, please stay connected while we connect the management team back on the call. Ladies and gentlemen, we welcome the management team back. Please go ahead, sir.

[Suresh Manglani, executive]

I was saying that the whole -- our strategy, which has been stated that we always accelerate CNG stations set up to make sure that there is an ecosystem development. We take a first move rather than a customer takes a first move. So similarly, now as we did ninth and tenth round, we see the benefit of coming now everywhere you go, volumes are ramping up as the price moderation comes, volume is expected to significantly go up in all the stations. So ninth and tenth round significant station spread has been done.

But even in those geographical areas and in our existing Ahmedabad, Faridabad, Khurja geographical areas, we always are looking for the white spaces, which are the gaps which are there, which you could still bridge. And we have all those information, and we are trying to bring DoDo stations. Generally, if there is a significant gap and we are losing the volume, we bring the CoDo also there. So -- the primarily -- in the existing [Indiscernible] ninth round will be DoDo driven, CoDo bridging the gap when the DoDo is -- we are finding is going to take longer time. 11 round will be the CoDo driven.

And you would be seeing quite of a good thrust. The numbers are we are getting finalized for FY '24 now. But the thrust will continue the way we have done the thrust in the FY '22, '23, you added 48 and you will see significant numbers coming in by March also.

[Operator]

[Operator Instructions] We have a question from Varatharajan Sivasankaran from Antique Limited.

[Varatharajan Sivasankaran, analyst]

I kind of missed the number of hotels you added during the quarter and in the 9 months between stand-alone as well as the JV.

[Suresh Manglani, executive]

So we have added 48 CNG stations during the 9-month period and 15 stations during the last quarter, Q3. The key part, which I would like to bring to your notice is that as I have been stating again and again, the quality, I think now the 74 stations are under CoDo and DoDo format in 9 months period, which as of December 31.

Out of 380 -- December 31, 2022, we have 382 stations, 74 stations have a CoDo and DoDo. On the IGPL front, we have added only 22 stations in the 9 months period and 10 stations in the last quarter, Q3. And they have total 230 irritation. And put together, it will be 610 stations.

[Varatharajan Sivasankaran, analyst]

And sir, this -- industrial distribution is concerned, if you can give us the source of gas which you are currently looking about [Indiscernible]?

[Suresh Manglani, executive]

The source of gas, the way it would be actually, there will be multiple. There will be the -- as we have been stating in every investor call, we have the strategy to keep building the portfolio. So we have sourced, which would be our LNG, which we purchased in a different contract, different terms, different indexes. Some contract index could be JCC, some places Brent, some places, HH as well as the contract is available. We have also been building in IGX or on a bilateral basis been buying the domestic gas.

So the source of gas for CNG and PNG home is certainly APM gas and now HPHT higher celing gas was were bridging the gap of a shortfall. But for non CNG and PNG is always multi-sources. We keep making -- building the portfolio so that -- there is the innovated average cost is managed well to provide the good price to the end consumer.

And it will continuously -- the way will be continuously building that. The tenure is not same, tenure could be different. The source is different. The quantity volumes also are different take-or-pay obligations are different. And this is what any company will do, building a good mix of a portfolio for gas.

[Varatharajan Sivasankaran, analyst]

That's right. If you can disclose a certain kind of a long-term contract you currently have long in midterm, what is the [Indiscernible] -- pricing of the [Indiscernible] but if you [Indiscernible]

[Parag Parikh, executive]

So we currently, in fact, are looking for a good window to see whether we could do some portion of the volume and bring this long-term contract in our portfolio. Currently, we do not have a long-term contract in our portfolio. We have a short-term spot and midterm contracts. But we hope to see currently, of course, is a high price trajectory. For a CGD entity, it is certainly not advisable to venture on the long term right now. But we are hoping that sooner we would get a window. And in fact, also, we may get a very good opportunity, maybe in a domestic gas as it's continuously increasing. So it's going to be good opportunities for CGD once the price moderation happens. So currently, we don't hold long term. We wish to hold...

[Varatharajan Sivasankaran, analyst]

If possible you can disclose the midterm and the short-term volumes -- contracts volumes?

[Suresh Manglani, executive]

Rahul will give you.

[Rahul Bhatia, executive]

We just have sort of one long-term contract which is a 5-year contract -- Yes, we have 1 long 5-year contract, which has got about 150,000 cubic meters. All the other contracts that we have would be about within a year.

[Operator]

The next question comes from Sudeep Anand from Haitong Securities.

[Sudeep Anand, analyst]

This is Sudeep from Systematix. So -- and many congratulations for a good set of numbers, sir. Sir, just one query. So despite the higher gas prices, we have actually -- we are able to maintain our gross margin. So if government implements Kirit Parikh committee recommendation, if gas prices comes down and with the falling spot LNG prices, how do you see margins spanning over the year FY '24 to '25?

[Suresh Manglani, executive]

See, Sudeep, if you see my -- even my opening remarks and every call which we had, we have always said our goal is broad-basing consumer base, increasing volume is the first target of ATGL and then looking at calibrated approach on the margin. So if tomorrow government is coming out with the Kirit Parikh report, we need to see final print of the report or the moderation of prices.

I think as a responsible utility and entity and a JV of 2 very large conglomerate, we would be looking forward to see how do we benefit end consumers? How do we bring more new consumers? How do we bring more lost volume to our site.

Margin, of course, overall absolute terms, our margins and EBITDA share to go up. Margin per SCM, we could be maintaining or slightly up and down, absolutely fine. But our focus and thrust is broad-basing numbers as much as we could do. That's the reason you see we added 92,000 homes.

We have added 614 industrial commercial consumers. That's the thrust area we are adding. We are adding CNG stations. We are giving a lot of marketing intervention on convergence that if you convert the vehicle, we give you some capital subsidy from our side. So ATGL strategy is fully in place that margins will be similar or slightly, we could -- we'll -- on a continued basis management we keep discussing. But the focus is benefiting end consumer.

[Operator]

[Operator Instructions]

[Rahul Bhatia, executive]

There are no further questions, we can conclude the call.

[Operator]

There are no further questions, sir.

[Rahul Bhatia, executive]

Yes. Yes. So Tushar, we can conclude the call.

[Unknown Attendee]

Okay. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation. You may disconnect your lines now. Thank you, and have a pleasant evening.

[Suresh Manglani, executive]

Thank you.

[Parag Parikh, executive]

Thank you, Tushar.

[Operator]

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using [ Dusaba's ] conference call service. You may disconnect your lines now. Thank you, and have a good day, everyone.