Adani Total Gas Ltd
NSE:ATGL
Earnings Call Analysis
Q3-2024 Analysis
Adani Total Gas Ltd
Suresh Manglani, of Adani Total Gas, introduced the Q3 FY24 call with an assurance that the 22% shortfall in APM gas supply was temporary, stemming from technical issues at offshore terminals. The CGD sector's importance as a public utility has been acknowledged by the government and despite production setbacks, there have been significant efforts to normalize supply levels. Engagement with GAIL, PPAC, and government officials has been maintained, and while no definite timeline for resolution has been communicated, there is optimism in restoring the APM supply 'sooner than later'.
The call addressed the increased costs due to the shortfall, but also highlighted the strategic shift towards CBG, with a focus on maximizing in-house production and leveraging domestically produced gas to develop a competitive edge. Manglani outlined the potential for a 600-tonne plant to yield about 45 tonnes of CBG and discussed the variables affecting CBG production, such as feedstock quality and plant proximity, indicating that better organic waste quality could increase this yield further.
Efforts to boost infrastructure and consumer confidence in CNG were a focal point, with long-term strategies to build a reliable ecosystem and reduce customer inconvenience. This approach is bearing fruit as vendors, including large OEMs like Maruti, reported a surge in CNG-fitted vehicle sales, signaling growing market acceptance of CNG as a fuel alternative.
Discussing the pace of CNG station rollout, R. B. Singh acknowledged challenges in gas availability, particularly in the eleventh round of station allocations and in areas of the ninth and tenth rounds. Despite ambitions to construct more stations, gas supply within the GA remains a crucial bottleneck, with some regions having to transport gas over long distances to meet needs.
Adani Total Gas has made significant strides in making their PNG pricing competitive, recovering from post-Russia-Ukraine war challenges, such as the dip in industrial volume to 59% of peak sales and reaching around 81%-82% of those volumes. With a strong carbon footprint initiative, the company is expecting to exceed previous volumes in the forthcoming quarters.
On the financials front, Parag Parikh elaborated on gross margin dynamics, with current levels just below INR 18 per portfolio, and an effective strategy of passing on reduced gas costs to customers. This balancing act has not only improved their market standing but also supported the recovery of industrial volumes, thus contributing to growth in both Commercial & Industrial (C&I) and the priority segment.
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Ladies and gentlemen, good day, and welcome to Adani Total Gas Limited Q3 FY '24 Results Conference Call hosted by Antique Stockbroking Limited.[Operator Instructions]
Please note that this conference is being recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran from Antique Stockbroking. Thank you, and over to you, sir.
Thank you, Lizan. A very good evening to all the participants and the top management of Adani Total Gas. We would like to welcome all the participants and the management of Total Gas -- Adani Total Gas to this call. A very warm welcome to all of you. And I would like to hand over the call to Adani Total management for the initial remarks. Over to you, sir.
Thank you. Varatharajan ji, I'm Suresh Manglani from Adani Total Gas. Let me extend a hearty welcome to all our investors, analysts, funds for taking out their time and participating in today's call in Q3 -- on Q3 and 9 months FY '24, results of Adani Total Gas. First, let me give you the highlights on all our businesses.
In our core CGD business on CNG Infrastructure as on 31st December 2023. During this quarter, Adani Total Gas has crossed 500 CNG stations milestone. And today, we have 505 CNG stations as on 31 December 2023. Out of these 505 stations as we have been emphasizing that we are also focusing simultaneously to develop our own branded full-formatted branded stations. We call it a company-owned dealer operator or dealer-on-dealer operated. Now we again achieved one more milestone within CNG stations is 100 stations we have achieved on the format of CoDo, DoDo. Our steel pipeline infrastructure has now increased to 11,712 inch kilometer. This forms part of a backbone in infrastructure, helping company to expand its reach of PNG and CNG to large consumer base. In a summary, on an average, 3 kilometers of steel and MDP pipeline is being laid on a daily basis by ATGL. We have added 22,700 in Q3 and 77,697 in 9-months period, PNG to the new homes in this financial year. And now our consumer base has grown closer to 7.8 lakh homes.
Similarly, as you are aware that we also equally focus on developing our anchor industry and commercial customers. We have added 222 new industry and commercial consumers and 636 in this 9-month period. Total number, again, a milestone has been crossed. Now we have -- 8,000 milestones has been crossed. We have 8,071 industrial and commercial consumers who are availing the benefit of piped natural gas. With this, and along with our JV, which is Indian Oil Adani Gas Private Limited, IOAGPL, which has 19 geographical areas, 30 districts. Adani Total Gas has 33 geographical areas, 94 districts, put together 124 districts is where we will be having or we are having our footprints. We have reached to 835 CNG stations together, 9.3 lakh homes and 8,781 industrial and commercial consumers.
Let me now give you some glimpse on E-Mobility business, which you are aware that we had set up a special purpose vehicle. Adani TotalEnergies E-mobility Limited is SPV, which is 100% subsidiary of Adani Total Gas. Within a short period of time now we expanded our charging stations in 10 states and 46 cities. As on date, we have worked live with a good utilization ratio of 329 EV charging stations and 1,050 more EV charging stations are in the various stage of construction. We hope to expand our footprint from 10 states to 20 states and from 46 cities to 130 cities very soon in the future.
On the biomass side, you are aware that we had set up similarly to the E-Mobility, we have set up one more special purpose vehicle, Adani TotalEnergies Biomass Limited. Company is currently setting up agri waste base and cattle dung-based, India's largest 600-tonne feedstock per day basis CBG plant in a location called Barsana, which is closer to Mathura and Agra. We are very happy that in this financial year in '23, '24, by March, and we are expecting that Phase I of this plant will be commissioned and will start producing CBG from that plant as well as the organic manure. And Phase II and Phase III will then follow in the subsequent financial year.
Besides this plant, we also got the award of a concession from Ahmedabad Municipal Corporation of 500 tonnes municipal solid waste based CBG plant. We are complete -- we are doing a lot of preparatory work. We have already appointed our own engineers. And we are now working with municipal corporation on allotment of a land parcel and then we start working on the construction part. And plus, we are also working on several other opportunities to expand multifold way our bio subsidiary like the way E-mobility subsidiary, we are making the plan. Another area which I would like to highlight to you is the -- we call it LTM LNG for transport and mining. Now the LTM also, ATGL is embarking on the opportunities in the LNG segment as a transport fuel, with building its first LNG retail outlet has already started in Dahej, Gujarat and many more are expected in the very, very near future.
We have developed a plan to set up LNG station network at almost all strategic locations in the country so that we can develop a complete network from east to west and north to south, serving the long-haul transport vehicle trucks and buses across the country. With our consumer centricity approach, our strategy will be to offer and explore a wider range of a sustainable energy fuel to all our consumers, which will help in reducing the carbon footprint and in achieving the Prime Minister's vision of net zero by 2070.
Now let me share with you the operational financial numbers during this quarter and in the 9 months period of this financial year. During the quarter, we have seen a good growth in our volume. With fast acceleration of a CNG network and high conversion from conventional fuel to CNG. Our CNG volumes have grown by 24% in this quarter to 144 MMSCM. In Q3 as compared to the last year quarter and on a 9-month basis, CNG volume has grown by 21%. On PNG volume for Q3, we have grown by 15% on year-on basis to 80 MMSCM, while for 9 months period, it has grown by 1% because in the past, we saw high prices and trajectory and where we saw kind of a negative growth.
But today, we have turned around the PNG growth to positive side to 225 MMSCM. This PNG growth is largely due to recovery in PNG industry segment and our customer-centric offerings to the industrial consumer, commercial consumer and in the homes. While on an overall basis, company witnessed an increase in the volume by 21% to 224 MMSCM in Q3 and 633 MMSCM in 9 months, which is up by 13%. So overall, in the 9 months company has registered double-digit growth of 13%.
On the financial front, for the Q3 as compared to the last quarter of the last year -- of the quarter of the last year, sorry. Revenue from operations now are INR 1,243 crores -- INR 1,243 crores, which is up by 5% because during the period, you will have seen that when APM ceiling came in, we have passed through the benefit which we got in gas cost to the end consumer due to which CNG prices has gone down. And as a result, you see much -- slightly lesser growth on the revenue side. While volumes have grown, financially, it is lesser growth because of the price rationalization for the benefit of the consumers. With increase in volume as well as efficient gas sourcing portfolio, EBITDA has increased by 26% and the highest ever EBITDA is INR 301 crores in this quarter. Profit before tax and profit after tax have increased to INR 231 crores profit before tax. And profit after tax has grown to INR 172 crores. PBT is up by 15% and PAT is up by 16%.
Let me give you a 9-month glimpse. Our EBITDA has increased by 20% to INR 846 crores on a 9-month period. PBT and PAT for the 9-month period have grown up to INR 655 crores and INR 488 crores -- PAT is INR 488 crores. The PBT has grown on 9 months basis by 14% and the PAT, P-A-T has grown by 15% for the 9-month period. On the HSE part, we have been adhering to the highest safety standards, and we continue to maintain 0 fatality rate across multiple locations that we operate pan India basis. You are all aware that ATGL has been simultaneously focusing on ESG framework along with the Board backed assurance policies, which enable us to have a sustainable growth with collaborative development of the community. In Q3, we have been awarded with a Climate Action Program, CAP, C-A-P committed category by CII of CAP 2.0 award program for commitment towards climate initiatives. And we also won Golden Peacock Award for HR Excellence, awarded to us in '23 for our HR best practices.
Lastly, I would like to list and be thankful the role played by our shareholders, analysts, fund houses, consumers, dealers, suppliers, business partners, media friends and all stakeholders who are associated with Adani Total Gas and above all, our employees. I'm greatly thankful to the team, ATGL for delivering quarter after quarter. Overall this is a fantastic result, a good set of numbers. Happy to receive your question and respond.
[Operator Instructions] The first question is from the line of Yogesh Patil from Dolat Capital.
Congratulations on good set of numbers. Sir, my question is related to shortfall in APM gas allocation to the priority segment. Why suddenly the APM gas allocation cut despite CNG and PNG domestic as a priority segment. Can you throw some lights on that side?
Absolutely. Yogesh, it's a pleasure hearing you again. I think -- and thank you for making it a point that you come every quarter investor call. I think you make others also enriched with the knowledge.
I think coming back to a very pertinent question, I'm sure many of your friends will also like to listen our answer. Yes, shortfall grew this quarter. I think overall, we had 22% shortfall in the supply of APM gas. We -- in fact, the newer GAs suffered a little more shortfall. But if you see the intent of the government has been very consistent. I think government maintained a strong setup of supply of APM despite there was some -- production losses were happening on the APM side. But we saw good support from government coming of a high priority to CGD sector. Because by nature, CGD is a public utility. And we are serving larger masses of our home consumer in CNG. During this period, what we understood was there was some technical issue at the -- on the offshore terminal site, which we have been told that there is a lot of work going on in bringing back some sort of more supplies. We believe this is going to be a temporary phenomena of such a high shortfall. We would have some deficit because numbers are growing. You are seeing the volumes are growing. APM field is what it is, actually, we all know. But we still believe that given the government focus, government commitment and the policy which has been laid down, we believe this is a temporary phenomena, and we will be back on getting much better APM supply, maybe not 100%, but I think, we will get much better supplies on the APM side as well.
So sir, as you said, this is a temporary phenomena, so is there any communication from GAIL side or ministry side that gas -- APM gas will get restored shortly. Any time line mentioned in that notice or communication?
See, as an industry, we are engaged. We are engaged with our stakeholders. So this is what we understand. Now communications are a formal one, which will keep coming and going. But I think more important is that we are engaged part of a stakeholder engagement. We've been sticking to -- whether it is GAIL, whether it is government authorities, whether it is PPAC, I think we are engaged with all and all of the CNG companies are doing the same thing. We also have collective body. So what we are understanding that government is working, ONGC is working to make sure that there is some more increase in the APM gas supply. We are hopeful because see more important for all of us to see positive part of the intent. Whenever we are engaging, we are seeing everybody is working hard to see more supplies come to [ CNG ] sector for home and CNG.
So that when we procure higher-priced gas that will -- may pass through to the end consumer and government is sensitive that end consumers should not suffer higher prices. So I think my request would be, let's have some patience for some more time. As [indiscernible], we believe it will happen sooner than later.
Okay. Sir, next question, you have ventured into the compressed biogas side. So we wanted to understand the cost of compressed biogas compared with the APM gas. Practically which gas is cheaper now in the market. And we wanted to understand that if the going forward CBG blending to go up, then the cost of gas for CGD companies will be lower or higher? So any color on that side?
Color -- I think, first, we need to see India's costs. And as I said in my previous conversation with other friends, India's vision is very clearly self-reliance, sustainability, supporting climate change costs.
I think blending of 1% initially and going to 5%, even if assuming that CBG will be slightly expensive, it's not going to make a difference in the pool of gas sourcing, which we all do. I think the important is that India must gear up to convert this waste, which is otherwise getting burned or getting dumped somewhere to CBG or much better fuels. So I think cost part will come around. This is a new segment. We saw when we were manufacturing -- started CNG part. We saw when we started renewable power part. I think economy of scale is building up. Technological solutions are improving. Costs are going to be reducing it. We should keep some longer term horizon on the CBG part. We believe this is a big win situation for the country. And we are -- that's the reason we ventured into the CBG side because we saw ahead of time that this is -- CBG is going to be the way. We all need more renewables, more organic manure, more renewable gases coming. And my way, I think, we should rather a little bit cost here and there, we should not see that way. We should see how do we make more and more CBG in this country and blend or sell CBG stand-alone.
So sir, currently, the blending of CBG is making overall cost of a gas higher or lower? Just wanted to understand on that side.
It will depend. Yogesh, it will depend upon what is the size of a plant? What are the feedstock? You will find varying from different plant to different plant, how close you are selling from the plant. If you go to Varanasi, which is our first CBG station, you will find our CBG price INR 9 cheaper than the CNG, cheaper, because it is a factory outlet. We are set up along with the factory. So there are -- as you understand, every business will have several dynamics, how big is a plant. With Barsana, we are building up 600 tonnes there will be economy of scale. How closer is the feedstock. Their feedstock is coming in the factory itself. Again, the logistic cost is reduction. How close you are selling the CBG? What is your -- so how much the yield is coming from feedstock? I think there are several factors. To my mind, just to answer -- to make sure that you go satisfied answer, is that you see overall blended cost of ours, whether we are now fulfilling the shortfall from HPHT or other LNG or other domestic gas. I think CBG will be a good bridge when we [indiscernible] because we'll have our own in-house CBG produced gas, which would perhaps be coming in the range of -- kind of this kind of ranges till we go to the much larger scale.
But larger goal is we must ensure that there is a CBG. And as the scale goes up, it will come down -- the cost will come down. It's a domestically produced gas.
[Operator Instructions] The next question is from the line of Varatharajan Sivasankaran from Antique Stockbroking.
Sir, continuing on the CBG part, this 600-tonne plant, what would essentially be the yield of gas?
So Varatharajan ji, it is a good question. I think -- now as we go along, we'll keep configuring and reconfiguring it with different types of feedstocks. So current feedstock, what we have decided to use will yield roughly 43 to 45 tonnes of CBG. And so now if we get much better feedstock quality, we get some enzymes, bacteria or some catalysts to do preprocessing perhaps yield may go up significantly. If we get a little more deteriorated quantity, yield may come down. So on an average, we should get roughly 45 tonnes of CBG from the 600 tonnes of a plant.
How would the 500 tonnes of municipal plants? What would be your expectation on that volume?
Municipal solid, again, how much is going to be the -- what is the quality of an organic waste which we get. So if we get a very high-quality organic waste, yield will go up. But generally, 4% to 5%, 3.5%, 4%. So if it is 500 tonnes, 16 to 20 tonnes, you can expect that CBG could come. If we get a reasonably good quality of organic waste, if we get much better quality, the yield would still go to 4%, 4.5% or maybe 5%.
The -- as I said in the previous answer, it's a new sector we are developing -- even the world is developing as a kind of a newer sector. This is for the world also a similar thing, whether we go to other developed nation. All of us, we are evolving technology, evolving various bacteria, enzymes, catalysts [indiscernible]. So we are looking for various technological solutions, whether how do we enhance the yield, from let's say, 4% to, let's say, 6%. That will make a huge difference on initial outcome as well as the pricing. But for the current purpose, we should take roughly 4%, 4.5%. That good quality organic waste should give from a municipal solid waste part.
Fair enough. So what we find is that everyone is getting into CBG, obviously, it is something which is a welcome move. However, like as analysts, we are always fairly -- what to say -- apprehensive about the economics part of it because the yield is variable, but the CapEx is upfront. So to that extent, like what would potentially be the IRR of these projects is what normally we wonder. So if you can give some kind of an idea of what to look at a number that would be useful.
See, one thing we should certainly satisfy that if Adani Group for TotalEnergies are entering into CBG, that means there are financial number outcomes are being seen. More importantly, since we are also a Adani Group company, I think most critical part for us is what is the need for a nation. So both the sides, we are marrying together. But at the end of the day, still we are seeing that there are financial good numbers that will be able to come. If we really do the way Adani Group and the TotalEnergies are known for how do we conceive the project, how do we execute the project? How do we bring value engineering, what should all we do on OpEx optimization?
I think there are several drivers which you need to put in place to make the numbers looking better. If we also follow the trend of all other plants which are already working. Largely, you'll find they're not giving good financial results. But despite that, we have got into this business, it means we are seeing it from different lenses. Our lenses are different. Some lenses could be more myopic. Our lenses are a little longer term and different. So we see a good financial number. Maybe Parag will give you a little more better number-based response. But I would say from a macro perspective. I think if we do a good job, if we are able to plan well, economic size is well, feedstock purchase is well. I think these projects are worth investing.
So Varatharajan, just to sort of add in a few perspectives and which will lead to our answers of what we should expect as return on the CBG sector. ATGL on its own manner has today the ROCs of -- at a portfolio level of close to 20%. So that, in some form, becomes a benchmark as any asset matures, does that lead to a similar number.
Purely from a capital allocation perspective, we would make sure that this capital is allocated into assets, which give same or better returns. Having said that, CBG is, as you rightly said, is a front-ended CapEx project. So you will see this ROC building over a period of time. And therefore, IRRs of this, while they are healthy, initial years will become lower and they start growing over time. Third, the interesting part is that this is a relatively a newer sector. And as a part of any new sector, whether it is in terms of economics, whether it's in terms of assumptions around those economics you would always look at it a little more conservative because you need to test these assumptions around those economics, you would always look at it a little more conservative because you need to test these assumptions in the initial set of projects that we are outlaying.
For us, the way if you see strategically, we are already there in Barsana, which is our agro feedstock. We are also looking at MSW projects. And the intention is to therefore see both the size of the biogas sector. So all put together, this is how we would see and as yields improve, as technologies improve, you will actually see a better return than what you would have estimated on day 1. So that's how we would look at it. Coming back, I think, to your sort of core question, what are those hurdle rates that we look at. We certainly look at least a minimum 16% IRR when we look at the biogas projects.
My other question was on the ramp-up of the CNG part, like the new geographical areas. Typically, what we observe is that at least lately, the ramp-up pace seems to be a little more muted because we see across players and they have put up new outlets in new geographical areas. But on the macro environment part of it, we have seen more OEM models on CNG and so on and so forth. We would have expected the ramp-up to be a lot more quicker, but it seems to be a bit of a lag. So if there is any specific reason you have identified or based on your experience, you would like to highlight.
I think Varatharajan ji, I think you asked I would say, important question. Maybe let me set the factual matters correct. I think one is that we have a couple of KPIs. One, our own KPI to make sure that we sell the customers with [indiscernible] . There are not much cues even though during peak hours. That's one KPI, which we keep for ourselves. Another KPI is what we have committed to PNGRB as the [ MWP ] program. These are the minimum number we need to deliver, and there is a yearly ramp-up. So I think if you see on both the parameters, our MWPs are far -- our actual numbers are far exceeding than the MWP program in each of geographical area, by and large. I'll give this to Mr. R. B. Singh, who is our -- the Joint President on project side, he's going to respond to you on your observation that we are slow pacing the stations.
In my view, I think we need to make sure that we optimize the yield on what the stations we have built, while ensuring there is a good customer service. Customers are not suffering coming long distances standing in the queue, filling time is more. Those are the parameters which we avoid.
And if -- RBS will give you the perspective that how eleventh round, which just came recently, how we have paced ninth and tenth round. We have built a large number of CNG stations. Today, the capacity is multifold installed versus what actually has been utilized. So we are already building the [ infrastructure ] for the future. And our stations also have a capacity expansion ability to put more compressors or more dispensers.
So my view is that if you'll see -- I think the number of stations have been fairly distributed. One more factor, which also has been -- perhaps maybe you are seeing number lesser is, our focus has been in the current geographical areas, largely to develop CoDo and DoDo stations, our full formatted because we have done extensive development of a CoDo station, where we co-locate with oil marketing companies. So that's the reason we touched the milestones in hundred and those are difficult because we do greenfield development. Whereas you will see eleventh round, almost all stations are coming under colo format, and the pace will be very high. Let me ask RBS to just supplement.
Before we move there, my apprehension was that like people are putting up outlets, but the volume ramp-up is relatively slow. That is my...
But that will happen, Varatharajan ji. I think that will -- surely will happen. You see your case and my case. What do we see before we opt for -- convert our vehicle. We will see continuity, reliability, strong partners who is put in place is -- are they getting CNG at right time? Am I going to go to dry out, there is a dry run that is happening. So -- and what distance I'm covering, what fill I'm getting, what time it is going to take in station filling? I think there are several factors which plays part in building ecosystem. So I think we decided what should be the first, chicken or egg. We have said we will take the lead in developing infrastructure, like other CBG companies. And now you are seeing that result happening, people are preferring to buy CNG vehicle. There is a long queue in the OEM shop for getting the CNG fitted car. And I maybe not correct to give you this number statistically, you may please check yourself. But I understand in case of the largest OEM Maruti, I think, their quarterly sale was more than 25% CNG vehicles. Please correct the number, I am told 28%, but maybe here and there is some number, notch here and up and down. But those are public domain numbers. So as I'm not Maruti spokesperson, so they are the right people to give you the number. But if that is the case, 25%, 28% quarterly CNG sale of the numbers is -- for us, it's a good news. It's a good news that our infrastructure which we built is now getting utilized and people are showing the confidence. RBS, if you can.
Sorry?
No. CNG stations speed -- pace, building pace.
Actually, CEO already explained you about the numbers. But even if you are going with a higher pace we can do it. If you see on eleventh round, we have already completed around 87 number of CNG stations. But the biggest problem is there is no gas available in the GA. So even if we can increase the gas availability is a big issue in eleventh round and to some extent, 1 or 2 GA of ninth and tenth round also. Just I will cite you an example of Maharashtra, we have already 30 number of stations in Akola and Amravati GA together. But we have to take gas from [indiscernible], which is almost 400 kilometers away from our stations. So this is the reason why the pace what we want to go, we may complete 200 number of stations. But the biggest issue is the availability of gas on that part. In spite of all, we are able to complete CNG stations in almost all geographical area of eleventh round. That has been awarded to us, including Assam also.
Varatharajan ji, I hope you got the answer. Quite detailed answer, but I hope you got it. Yes.
The next question is from the line of Yogesh Patil from Dolat Capital.
For giving me an opportunity again. Sir, PNG and retail side, as the spot LNG at prices and other LNG prices are on the softer side. Question is, have you cut down your PNG industrial prices or PNG commercial prices in the recent days or recent months? And sir, we also wanted to know your gross margins movement on the PNG industrial side over the previous quarter? And if possible, can you throw some lights on the PNG industrial demand or volume growth in last 1 to 2 quarters?
Yes. I think I will come and pitch in. But let Rahul Bhatia who our National Business development head, give you a complete perspective on your questions, what you asked.
The answer is, yes, we have made our PNG pricing very, very competitive. We are ensuring a very effective value position to our customers. We're giving them what is called CFI, a carbon footprint initiative. So we are looking at the alternate fuels. And as you would know that in the last 12 to 18 months, the prices of LPG and various liquid fuels has been very competitive. So we've been providing them customized solutions to ensure that natural gas PNG continues to be very, very effective. And therefore, we are seeing an increase in volumes. To give you a little perspective, from the peak sales that -- industrial sales that we had before the Russia-Ukraine war, our volumes -- industrial volumes have dropped to a low of about 59%. And we've already recovered a very significant amount. We are currently at about 81%, 82% of those volumes. And based on our carbon footprint initiative strategy, we are very confident that we will soon be reaching the 100% and exceeding those volumes in the coming quarters.
Sir, on the gross margin...
On the gross margin perspective, Parag Parikh here. See, as Rahul explained, I think, at different points of time, we'll end up calibrating on the demand supply on the industrial side. And to that extent, the drop in the overall gas cost prices have enabled us to pass on these prices to the end consumers. So if I have to put it from a gross margin perspective, gross margin we were slightly short of about INR 18 at our portfolio. And if I were to compare this a year back when the gas cost was significantly higher, we would have been about INR 0.70 to INR 0.80 lower as far as our gross margin is concerned. So that's really the fine balance that has been done at ATGL, where we ensure that the pass-on is happening. The pass-on resultantly also has helped us in again, restoring and shoring up our volumes. On both the C&I side and of course, the growth that we saw in the priority segment.
Ladies and gentlemen, that is the last question. I now hand the conference over to Mr. Varatharajan for his closing comments.
Thank you, Lizan. I thank the management and all the participants for taking time out to join the call. And for the management, having given such detailed answers to all the questions. If you have any closing remarks, I would like to hand over the floor to you, sir.
This is Priyansh Shah. I think thank you, Antique and Varatharajan for the call. And thank you to the management team, Mr. Suresh Manglani, company CEO and Parag Parikh CFO of ATGL for doing this call. And if you have any further questions, please write to us, we'll be happy to answer all the questions. Thank you.
Thank you, members of the management team. Ladies and gentlemen, on behalf of Antique Stockbroking Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.