Adani Total Gas Ltd

NSE:ATGL

Earnings Call Transcript 2023-Q4

[Operator]

Ladies and gentlemen, good day, and welcome to Adani Total Gas Limited Q4 FY '23 Earnings Conference Call, hosted by Antique Stock Broking. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Kishan Mundra from Antique Stock Broking. Thank you, and over to you, Mr. Mundra.

[Kishan Mundra, analyst]

Thank you, Tanvi. Good evening, everyone, and apologies for the delay. And thanks for joining. So I welcome you all on behalf of Antique Broking to Adani Total Gas' 4Q and Full Year Results Conference Call. The company today is being represented by Mr. Suresh P. Manglani, who is the Executive Director and the CEO; Mr. Parag Parikh, who is the CFO; and Mr. Priyansh Shah, who is the IR of the company.

With that, now I would like to hand over the call to the management for the initial remarks, post which, we will move on to the question-and-answer session. Over to you, sir.

[Suresh Manglani, executive]

Thank you, Kishan, and good evening, everyone. Let me extend a hearty welcome to all our investors, analysts fund for taking out their time and participating in today's call for Q4 FY '23 result of Adani Total Gas and for the full year FY '23. .

As you all know, at ATGL, we adhere to the highest safety standards. And safety is a precondition to work, and we continue to inculcate a strong safety culture at ATGL, which helps us to build safe and reliable CGD and EV and bio infrastructure across India.

First, let me give you highlights on the CGD infrastructure front. As a part of our stated strategy to fast track and accelerate steel [ pipeline ] network, so that natural gas ecosystem is developed well in the new geographic area, which we have won in 9th, 10th and 11th round.

This acceleration program of a steel pipeline will certainly help us to create infrastructure for the last-mile connectivity in a much faster way. And similarly, it will help us to create CNG infrastructure and the connections to the home and industrial commercial consumers.

ATGL has achieved over 10,880 inch kilometer, nearly 11,000 inch kilometers of steel pipeline and also roughly 1,000 additional kilometers of we laid in this year. For the steel pipeline network, we are ahead of a [ mini ] work program commitment in most of our geographical area, awarded in 9th and 10th round.

On the CNG front side, we have added highest-ever 126 new CNG stations. Last year, we added 117; this year, 126 stations in the 12-month period. And the total tally has now gone to 460. If I add 277 stations set up by our JV company, IOAGPL, our footprint extends to now 737 CNG station in the country.

I'm also very pleased to inform you all that out of this 460 stations, we have also -- there is an inclusion of 1 CBG station, which we have set up in Varanasi, which is not our geographical area.

Also, out of this 460 stations, which we have set up, 87 stations, roughly 20%, is on the CoDo, company-owned, dealer-operated; or a DoDo, dealer-owned, dealer-operated format.

On the PNG front, I'm very pleased to inform you all that we have continued the run rate of our 10,000 new homes per day. So in a whole year, we have connected 1.24 lakh new homes on pipe gas. So the total tally has now gone to 7.04 lakh consumers. We have also added 867 new industrial and commercial consumers, and total tally of I&C consumers have now crossed 7,000 consumers.

During FY '23, we have seen high gas prices. We have been conscious on balancing the price rise to our consumers and have taken a calibrated approach in passing that additional cost per day.

With a significant increase in the domestic gas price, Government of India took initiative to announce the new pricing formula for domestic gas prices, which relates to the APM gas prices for our home and CNG gas supplies.

The new formula has prescribed the floor of $4 and ceiling of $6.5, with a moratorium of 2 years, but no price increase on the -- either in the floor or in the cap. And after 2 years, there will be an increase of 0.25 in the floor as well as on the cap side.

This has certainly brought stability in the pricing [ receipt ] and also brought the pricing moderation from 8.57 as price has come down to $6.5, which was a ceiling. And ATGL, being the one of the largest CGD company in India, took the initiative to pass through the benefit to the end consumers to build the demand momentum in the country, both for PNG and CNG segment.

We are confident that with this very supportive initiative from Government of India and simultaneously softening of LNG prices, there will be a momentum and boost in the demand across India for both PNG and CNG segment.

Now let me share with you the numbers achieved during this year and quarter. Our overall volume of CNG and PNG grew by 8% as compared to 12 months period of last year. PNG volume for full year was at 459 MMSCM, which grew by 28%. And PNG volume was at 294 MMSCM, which degrew, it means there was a degrowth, by 13% as compared to the last year, owing to the price rise in the PNG prices.

On the financial front, revenue for the full year stood at INR 4,683 crore, up by 46% as compared to FY '22. Our EBITDA this time crossed INR 900 crores. So it is 11% higher at INR 907 crore as compared to INR 815 crore in FY '22.

Profit before tax and profit after tax, both were at INR 716 crore PBT and INR 530 crore PAT, both grew by 5% each. On the quarterly numbers, revenue for the Q4 FY '23 stood at INR 1,197 crore, nearly INR 1,200 crore, up by 12% as compared to Q4 FY '22. EBITDA for the quarter Jan to March '23 grew by 45% at INR 205 crore as compared to INR 141 crore in Q4 FY '22.

Profit before tax and profit after tax grew by 37% and 38% at -- INR 142 crore was a profit before tax for Q4 and INR 104 crore was a profit after tax for Q4. ATGL has a healthy balance sheet with a debt-to-equity ratio at 0.47 and net debt-to-EBITDA at 1.11.

Now in line with our strategy of diversifying into adjacent businesses, which we have been giving you all details about what we are doing on the adjacent businesses, ATGL has formed 2 SPVs, one on EV side and other on biomass side. Both SPVs have commenced businesses.

This would enable us to offer multifuel choices to our consumers. In the year, we started the SPV sometime in August end or so, E-mobility part. And we have formulated, developed the systems, processes, resources. And we have also done now 104 EV charging points at 26 strategic locations in various parts of the country, which includes airports, our own CNG stations, places like GIFT City in Gandhinagar.

We are also focusing B2B partnership, B2C model, calibrating both the sides. And we hope that this 104 point -- EV charging points will grow to 3,000-plus charging points by the next 12 to 18 months' time.

On the biomass side, as we have -- last time we stated, now the work on our largest biomass project in Uttar Pradesh, which we have commissioned, is in full swing. The [ digesters ] have started construction. And we hope that Phase 1 -- it's a 3-phase project, the Phase 1 project of this biomass plant will be commissioned in this financial year '23-'24.

At ATGL, we continue to focus to our consumers and to have a delightful experience. In this year, we have launched several digital initiatives, including smart IVR, full fledged now.

My AdaniGas app has become a full-service app. It is in vernacular languages. People can use, choose their Gujarati or Hindi option, in addition to English. An entire bouquet of service, you can register a new service connection, you can do the name transfer, you can seek a refund, lodge your complaint, give you a meter reading.

As well as from the registration to the live gas connection, there is a complete journey being mapped digitally, and customer is being provided the milestone messages like in the same model as a passport model, which we get stage-by-stage messages, that also now we have mapped.

So this is now a full blown my running gas app, which is offering a very delightful experience to our consumers. We have been focusing on ESG, and that focus is continuing through our several initiatives, including our flagship Greenmosphere initiative.

We have won ESG Initiative of the Year Award in this FY '23-'24 from ET Energyworld Annual Gas Conclave for its activity -- for our activities under Greenmosphere initiative, working to create a low-carbon society.

At ATGL, as we have been always stating, we've got 5 independent directors on the Board, 3 women directors on the Board, 12 committees of the board, which are looking after or overseeing several aspects of the businesses. We have a very strong governance framework with Board-backed assurances and policies, which enables us to have sustainable growth with collaborative development of the community.

Lastly, I would like to acknowledge and be thankful the role played by our stakeholders. You saw the Government of India coming out with a supportive policy. Consumers, our dealers, suppliers, our partners, the investment partners, the investors, fund houses, business partners and stakeholders, which all have been associated with Adani Total Gas and lastly, our employees, I thank them all for a fantastic performance. Thank you all. Now it is open for question-answer.

[Operator]

[Operator Instructions] The first question is from the line of Puneet from HSBC.

[Unknown Analyst]

My first question is with respect to PNG demand. Will it be possible to break up the PNG demand between domestic and industrial customers to give a sense of what happened on the front? And how was so much as a fall in the industrial field?

[Suresh Manglani, executive]

Yes, yes. So you want the data point, correct, over the '22-'23?

[Unknown Analyst]

Correct.

[Suresh Manglani, executive]

So Rahul, why don't you share the data points on the demand, which has -- the consumer demands on PNG, domestic, commercial, industrial consumers and the CNG. 4 segments, he's asking the total demand. We have, no? Why don't you give?

[Parag Parikh, executive]

So in the meanwhile -- Parag Parikh here, so I will answer the question as far as the composition is concerned. Firstly, if you look at the FY '23 annual composition, the composition constitutes of about 60%-plus on CNG, while the balance 39% to 40% is on the PNG.

Now within that composition of 39% to 40%, if you look at it on an overall basis, 28% is on the industrial, 8% is on the domestic and about 3% is on the commercial. So this is the composition as far as an overall volume composition is concerned. If you look at...

[Unknown Analyst]

So 28 industrial you said, out of your 40 number?

[Parag Parikh, executive]

Yes. If you look at within that, within the overall volume of 753, industrial volume comprises of about 230, so that the industrial MMSCM in the 753 component that you see, whilst the balance, domestic and commercial put together, is close to another 80. So totally 293, as far as the industrial or PNG volume is concerned, while 459 is the CNG.

[Unknown Analyst]

Yes. So -- and how much has it fallen, if you can give the same number for FY '22 also?

[Parag Parikh, executive]

So as mentioned in the opening comments, we've seen a growth as far as the CNG volume is concerned. The CNG volume grew at about 28%. And vis-a-vis this, as far as the PNG number is concerned, PNG saw a drop of close to about 13%, which, on an overall basis, offsetted because on an annualized basis, our average volume of 1.91 grew to 2.06, which is 8% on an overall portfolio basis, while specifically on PNG, as I mentioned, it went down by close to 13%.

[Unknown Analyst]

So yes, that's what I'm trying to understand, the breakup of this 13%, how much was a hit on industrial side and how much was on the domestic and commercial side?

[Parag Parikh, executive]

Sure. So if you look at it purely from an industrial perspective and -- which is where really the impact was there, commercial and domestic volumes have only grown. In the industrial one, the -- on an annualized basis, the volumes actually came down by about 19% to 20%.

[Unknown Analyst]

Okay. And how is it trending now in an environment of reduced APM price?

[Suresh Manglani, executive]

So Puneet, there are two things. Now one is, as I said in my opening remarks, one is the domestic gas prices for APM has moderated, which we have passed through. We are certainly seeing, even when we speak to OEMs, they are getting a good order book. There is a lot of waiting on CNG side.

Number of CNG vehicles, factory fitted as well as the retrofitted, both are increasing. So we hope to see a momentum building on CNG side. Domestic, of course, now we have also -- every CGD entity, including ], we've passed through. We hope that also will bring -- besides price, there are many other benefits of PNG, which every housewife and every house is recognizing.

So demand side, you've seen we have connected 1.24 lakhs. As compared to last year, we connected 86,000. So there is a good buildup of a demand, which is happening on domestic side. So we see this price moderation, which Government of India supported, will further boost the demand on these 2 segments.

On the industrial and the commercial side, we're also seeing, actually, fortunately, there is a softening of LNG prices, plus there is a domestic gas which is coming from RIL-BP side. We were the largest bidder. If you see from a CGD segment point of view, we got 0.4 million, roughly, in the last 6 million bidding.

So I think all this is going to help us to pass through the price benefit to the end consumers in industrial, commercial. And we hope to see demand growing from even I&C segment.

[Unknown Analyst]

Understood. And if you can also give some color on your EV charging business? What percentage is 2-wheeler, 4-wheeler? How much is slow, fast? And where all are you installing this?

[Suresh Manglani, executive]

So we have just begun. If you see, we are still at only 26 charging stations, 104 charging points, 104, as I stated. Most of our charging stations at [ certain ] airports will have a 4-wheeler charging point. And other places, we are setting up. In B2C model, we are also putting slow and fast charging, both combinations. Some places, in fact, we are supporting bus charging systems also.

So I think as we grow further, as I stated, this will be a calibrated approach. We also are focusing on partnerships on B2B and various cab operators, various bus operators. So I think we will see more on EV to come in '23-'24.

[Unknown Analyst]

Right. So there is nothing on the 2-wheeler side, right, everything is 4-wheeler?

[Suresh Manglani, executive]

No, no, no. 2-wheeler also I said. As I said, 2-wheeler also is a new segment which will get added in our consumer basket. Two-wheeler will be the focus.

Wherever we are setting up the EV charging station, we are definitely providing in the B2C model as well as some places in B2B, where we are actually having a space and the demand on the 2-wheeler side as well.

[Parag Parikh, executive]

And these are incubated steps, like we'll continue to build over this. And aim is to set up another 2,500 to 3,000 charging points in both the B2B, B2C model over the next 18 to 24 months.

[Unknown Analyst]

And could you also likely be using your distribution outlets for them or these are different outlets?

[Suresh Manglani, executive]

See, primarily, it is a merit-based business. [ Dolomite ] is a separate company, as we said, SPV. There is a separate business team, which is working. They will see the business demands, whichever places it comes. And if that be our stations, this will -- they will get a full preference to set up EV charging station.

But primely focus for them is to locate the strategic locations and across the country, highways, heritage sites and various B2B partnerships. Of course, our strength will be definitely useful for this SPV to strengthen EV charging set up much faster than other newcomers actually.

[Unknown Analyst]

And on your financials, post the price that you pass on the gas price, how are the margins likely to be going into this year versus the 4Q on this?

[Suresh Manglani, executive]

Sorry, can you repeat the question, please?

[Unknown Analyst]

Going into 1Q, 1 month of -- in October, early May, there has been a price [ set ] to APM gas, which you passed on to consumer, how are the margins likely to trend into this quarter and this year versus the fourth quarter?

[Suresh Manglani, executive]

Parag, would you like to...

[Parag Parikh, executive]

So if you heard whilst there is a Government of India initiative, and that has certainly helped in bringing down the input cost on the APM price as a distribution entity, what we have done is we have passed on these benefits to the end consumer. So if you see it from purely that perspective, all these benefits are passed on to the consumers. .

What we do expect out of this in the coming months, this will result in terms of increase in terms of volume, both from the existing consumers as well as potential conversions of newer customers adding at this reduced price.

[Unknown Analyst]

So basically, what you're saying is at gross margin level, it's shouldn't change, but...

[Operator]

Sorry to interrupt sir, I would request you to please come back in the queue. The next question is from the line of Yogesh Patil from Dolat Capital.

[Yogesh Patil, analyst]

For quarter 4 FY '23, what was the proportion of APM gas for your priority segment?

[Suresh Manglani, executive]

So Yogesh, first of all, how are you, all good? You have been...

[Yogesh Patil, analyst]

Yes, sir.

[Suresh Manglani, executive]

Good that I'm happy that almost -- you have been attending almost all our calls. So Q4, we'll give you APM. I think as Parag has stated earlier also that APM was roughly 55% to 60%, Parag?

[Parag Parikh, executive]

That's correct.

[Suresh Manglani, executive]

Yes, around 55% to 60% proportion is the APM for both domestic and CNG.

[Parag Parikh, executive]

Purely from a demand to supply perspective, we have continued to get APM. Today, APM comprises -- on a yearly basis, APM comprises almost 88% to 90% of the supply.

And this lag is largely to do with the fact that as CNG volumes have grown, the APM supply for that comes as a consequent effect. So to that extent, there is a lag. But as far as our supply is concerned, we've got 88% over the year.

[Suresh Manglani, executive]

So around 12%, we are [ making ] through the shortfall, which we are managing through our own portfolio.

[Yogesh Patil, analyst]

So sir, in the last 6 months, as per your observation regarding the shortfall of APM, is it in the range of 10% to 12% or it is varying from 10% to 15% or 10% to 20%? And it is coming down or it is increasing? Just last 6 months, your observation regarding that?

[Suresh Manglani, executive]

One, Yogesh, it will be largely -- now since the allocation is on GO and GA basis, so that certainly varies. If the particular GA is growing much faster -- suppose in a new geographical area, it is growing much faster rate, there could be a shortfall of 15% to 20%.

But on an average basis, as Parag gave you on a portfolio basis, this is around 12% is what we had the shortfall.

Largely because even 8% to 10%, you saw the CNG has grown by 28%. So home also has grown. So if you take out I&C, we have grown at a very good rate. So that will cause some shortfall because there's a time lag in [Technical Difficulty]. But yes, some GS could have 15%, some GS could have 20%. It is all the function of the growth which the geographical area achieves in the 3 months period, which actually takes a time lag.

[Yogesh Patil, analyst]

Okay. So the next question over the period of long term, like 3 to 4 years, what is your in-house estimates about the proportion of APM gas for the priority segment? So how much do you expect will be the allocation? Will it remain in the 88% range or will it come down to the 85%, 80%? So what is your in-house estimates for that?

[Suresh Manglani, executive]

See, today, we have a stated policy of under no cut, first priority to CGD industry for home and CNG. So whatever APM gas is coming, we are consuming roughly around 40% or 42% of that part, remaining is going to other segments.

We hope, since government has a very strong vision of growth for CGD business. As we grow on the APM side, they will continue to maintain similar kind of a level of supplies of APM to CGD businesses because there is a scope to continue to increase APM supplies to CGD industries. While there is now domestic gas coming, which could also become bundled with -- for other segments.

But we need to see how the future growth of CGD business is coming up and how government is going to be allocating the gas. So far, we are seeing a very good support coming up, and we hope that this level will be maintained.

[Yogesh Patil, analyst]

Okay. Sir, I have two last questions from my side. I will quickly wrap it up.

[Suresh Manglani, executive]

[indiscernible] you do 6 balls. So I think it's [indiscernible] over. No problem.

[Yogesh Patil, analyst]

Yes. Yes, sir. So latest PNGRB decisions regarding the Faridabad GA. So can you please share the current sales volume at Faridabad and the latest decision of PNGRB? How it will impact on your expansion plans at Faridabad?

[Suresh Manglani, executive]

See, first is this decision has just come. There, we have received now the order, where our 3 areas of Faridabad geographical area, largely domestic dominated areas, have been now -- in that order, space, it has been given to the IGL also to develop, while maintaining the status quo for our existing infrastructure.

We and our legal teams are studying the various -- the implication of this order and what options are available to the company. In fact, we have notified to the stock markets also accordingly. So I think that has made for the next investor call to get complete clarity on this order implication as well as the option which we exercise.

[Yogesh Patil, analyst]

So what is the current sales volume at Faridabad, sir? Any ballpark number if you have?

[Suresh Manglani, executive]

0.52.

[Yogesh Patil, analyst]

0.52. And what is the potential of this GA in the long-term period over a period of next 5 years?

[Suresh Manglani, executive]

See, this is an NCR geographical area. As the regulations are coming up on use of natural gas, demand is only going to grow and grow further. So volume growth will be better.

[Yogesh Patil, analyst]

Okay, sir. And the last question from my side. The PNG industrial, so looking into the future of propane prices, it implies that the landed prices of propane would be more and more competitive with the PNG industrial. So what would be your strategy to tackle this kind of competition or a risk for the PNG industrial volume?

[Suresh Manglani, executive]

See, any industrial consumer you speak or we speak, they want continuous reliable supply, particularly coming through pipeline like ours. .

Now if you said propane is going to be competitive, which we are also aware, anybody who is going to be comparing these two, they will always prefer, even a slightly premium, the piped natural gas, which gives a continuous sustained supply uninterrupted. Whereas in case of propane, you need to get a tanker, you need to do a lot of order deliveries, so many things are happening.

So our view is storage part that customers are preferring and wherever, in fact, we are in slight premium, they are still working with us, and we are trying to be as committed as possible. So I think we believe we are trying to ring-fence around the propane and other fuels.

Customers not only are getting benefit of sustained supply, also, we see some quality improvements on the customer side. We are hoping and we are confident that consumers shall continue to use and avail piped natural gas.

[Operator]

The next question is from the line of Mayank Maheshwari from Morgan Stanley.

[Mayank Maheshwari, analyst]

Just one question from my end. In a bit more strategic way, frankly, in terms of your long-term view not yet you are launching other businesses within -- on energy transmission and energy distribution.

So if you kind of think about it over the next 5 years or so, like is there focus at the Total Adani level and the management level to say, "Okay, these many [ Xs ] have to kind of get now being distributed, which is either low carbon fuels or this X percentage should be gas"? So is there a mix that you are trying to target when you're kind of putting up these expansion policies on the nongas side of the business in distribution?

[Suresh Manglani, executive]

So Mayank, it's a very good question. And as we have been stating earlier also and you can see -- and you are actually coming from Morgan Stanley, you also know how India is growing. India is a very vast country, there's a huge deficit of, still, the renewable energy as well as the natural gas, which is still being imported. .

The CGD infrastructure is yet to grow in large number of districts in the country. So we believe that our CGD vision shall continue to remain agile as we have conceived, as well as the way we are implementing in all 33 geographical areas, including our 19 GO JV companies. So 52 geographical area, we'll see a good business growth, infrastructure growth on the CGD side because we see the demand traction on those sites.

Every home requires a pipe gas. There's a large number of CNG vehicle traction we are seeing now with the moderation of prices. And both industrial and commercial side, of course, EV is not coming. So from that perspective, I think we are seeing good business case for the CGB side.

On the EV side, as we see a lot of promotional schemes coming from government as well as the new renewable energy coming in the market. So we -- part of our strategy is to seize the adjacent businesses. We have started working on EV side. We see a separate set of a segment of consumers who have a choice of EV. One choice to us was that we lose that market, other was we seize that market. So we chose the later part. So is the case of the CBG.

Government has a huge vision. You saw this time budget also the PRANAM Scheme, everything which has come, very favorable. We are seeing a stated after state quite favorable on the biomass side. And it is good for the country to have waste-to-wealth program. So I think these 3 segments, while they are adjacent, they are complementary.

All 3 put together would create an energy security for India. So I think we still believe each business segment has its own market, and we would be able to seize those opportunities in each of the segments, whether CGD, EV and biomass.

[Mayank Maheshwari, analyst]

Got it, sir. And I think just a related question on this was more about the CapEx allocation. Obviously, city gas will be the biggest part of it. But if I was to kind of break it up on the non-city gas side, how much capital allocation is going towards electric versus CBG?

[Parag Parikh, executive]

So Mayank, again, we have taken baby steps as far as the EV business and the bio CBG is concerned. We had both these entities incorporated as only on subsidiaries just about in the second quarter of this year.

Like I was mentioning a little while earlier, the immediate plan over the next 18 to 24 months is to set up about 2,500 to 3,000 charging points, as far as the EV side is concerned.

Having said that, EV as a per charging station is extremely at low CapEx. So the overall number will remain very low, as far as EV investments are concerned, compared to the overall CGD business. This would be less than double digits to begin with. Similarly, as far as bio CBG is concerned, we ventured into the first and the largest biogas plants to be set up in the state of UP.

Having said that, we are intending to do this in a phased manner. So we are looking at incrementally increasing the size over the next 2 to 3 years, whilst the first one that we've embarked is a smaller size. So the investments, again, out here will be in single digits to begin with.

And as I said, 12, 24 months will also allow us to really see the surge and the experiences around the 2 businesses, which could possibly move towards, to some extent, a larger investment than the single digit, as I mentioned, on the EV bio.

The core focus for now certainly would be to continue to build a steel pipeline network on the newer geographies that we've been awarded, continuing to lay down and accelerating the CNG stations. Whilst on the earlier rounds of the 9th and the 10th, the thrust is in terms of connecting the home connections.

[Operator]

[Operator Instructions] The next question is from the line of Kirtan Mehta from BOB Capital Markets.

[Kirtan Mehta, analyst]

One question on the RIL gas where we have got the largest allocation of 0.39 MMSCMD. What will be the breakup between the priority segment and for the industries and commercial?

[Suresh Manglani, executive]

So the priority breakup would be roughly -- I think we got 0.32, we got for priority for home and CNG, APM one, and remaining, we got the I&C part, industry and consumer part.

[Kirtan Mehta, analyst]

So with this 0.32 for home and CNG, is it covering our existing gap? Or does it cover for our -- even some of the future gap as well?

[Suresh Manglani, executive]

Largely would be existing what we saw, as Parag stated, around 12% was a shortfall. And the growth which we are seeing coming up and -- at least is a quarter lag. And we also kept in mind that our future domestic bidding rounds are coming.

So keeping all in that mind, we have been saying in every investor call that we have a very good portfolio policy in place, the gas buildup portfolio policy, which our sourcing and business development team is doing. So this was part of that calibrated approach to bid certain volume so that we have in our portfolio, this -- the RIL-BP gas in this 6 [ million ] round.

[Kirtan Mehta, analyst]

Right. And in terms of the shortfall that we had, so now largely, it will get met by the HPHT prices, and we don't have to access the LNG, which is -- at this point of time, costlier than the HPHT, is that right understanding?

[Suresh Manglani, executive]

Yes. Largely, you are absolutely right. But sometimes we see, in fact, IGX throwing up some good [ test rate ] offers as well. So who knows, sometimes we may get even better prices. And business is growing, so we will be seizing those opportunities as well.

[Kirtan Mehta, analyst]

Right. And in terms of sort of understanding this with our RLNG prices sort of adjusting down at the moment, would we be seeking opportunity to enter into some of the medium-term order [ log ] contract to support our industrials and commercial volume growth from here?

[Suresh Manglani, executive]

So I think I'm connecting you to Rahul, who is our gas sourcing and BD Head. So let him give you -- you listen from horse's mouth rather than from me.

[Rahul Bhatia, executive]

Hi, Kirtan. Rahul here. Kirtan, as you very rightly mentioned, we actually want to take -- address any market opportunities that come up in order to optimize our gas sourcing portfolio.

So therefore, we actually keep an open position of about 5% to 15%, which is based on the contracted quantities and the take or pay of our various diversified portfolio. And in case we get any good opportunities, whether in the short, medium or long term, we then get into those contracts.

So even now, we are -- we continue to scan the market because we are getting into the summer and there are -- sometimes, a good medium-term or long-term opportunities are available. At this point of time, there were certain medium-term opportunities, and we captured that for a year.

We are continuing to scan the market, but we want to be absolutely certain that we get very attractive contracts if we commit for 3 to 5 years. Have I been able to answer your question?

[Kirtan Mehta, analyst]

Yes, I think -- gives us a very good perspective in terms of how to look at the strategic servicing. One more question, if you allow me just to understand the industrial side segment. Would you be able to share the segment breakup in terms of the end-user industry?

[Suresh Manglani, executive]

Diversified. Yes. It is largely diversified.

[Rahul Bhatia, executive]

It's largely diversified. In Ahmedabad, for example, we would have -- about 40% of the portfolio would be about dyes and chemicals, then we would have about 20% from the rolling mills and the foundry industry and some textile industries, some ceramics. In Faridabad, we have a lot of auto industry and the tire industry, et cetera. So it's a diversified portfolio of several industry segments.

[Operator]

[Operator Instructions] The next question is from the line of Harsh Maru from Emkay Global.

[Harsh Maru, analyst]

So two bookkeeping questions from my side. One is on the finance costs. So could you give us some more color on the -- like the higher finance cost for this quarter? And the other is, if you could throw some light on the loss in terms of the IOAGPL [ JV ] share? So these would be my two questions.

[Suresh Manglani, executive]

Yes, yes, yes. So we'll give you.

[Parag Parikh, executive]

Thank you, Harsh. As far as the finance costs are concerned, the finance cost, if you see in the third quarter, has actually gone down. And the finance cost in the third quarter had gone down because we had taken an accounting view in terms of some of the capitalization that is being done for the newer geographies.

So it's really an implication of that why you see a little bit of a higher finance cost as far as the year end of fourth quarter is concerned.

Having said that, and just to give you a perspective in the right spirit, if you look at the overall gross debt, our overall gross debt today stands at INR 1,372 crores. This is the debt which is sitting against an overall asset block of close to INR 3,900 crores, which effectively means that about 35% of the gross debt is actually funding our current fixed assets.

With the existing cash that is sitting on the balance sheet of ATGL, our net debt-to-EBITDA is 1.11, so that's as far as our debt position is concerned and our interest cost.

Your second question was in terms of IOAGPL numbers. IOAGPL continues to ramp up, as far as its own performance is concerned. If you look at in terms of their own quarter and annual numbers, they have started improving over a period of time, and this is simply because we are seeing their infrastructure growth as far as in terms of their volume growth.

The overall EBITDA for IOAGPL stands at close to INR 215-odd crores. And as far as the year-end PAT is concerned, the year-end PAT is close to about INR 36-odd crores.

As far as the current particular quarter is concerned, quarter, as you know, had some implications, as far as APM gas is concerned, as far as partial gas procurement and sale is concerned, which is why there is an implication, as far as the quarter is concerned. But on an overall number, as I said, they are at our annualized EBITDA of close to INR 250 crores.

[Operator]

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to management for closing comments.

[Suresh Manglani, executive]

Thank you very much. Thanks all for participating in the call, taking out their valuable time. Look forward to their participation in the next investor call. Thank you.

[Parag Parikh, executive]

Thank you. Thank you, everybody. Thank you for participation.

[Unknown Executive]

Thank you. If you have any further questions, please write to us in case of any further questions. Thank you.

[Operator]

Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.