Total expenses slipped 13.4% YoY to Rs 3,628.97 crore during the fourth quarter. Cost of materials consumed was Rs 3,078.06 crore (down 17.25% YoY) and finance costs stood at Rs 6.05 crore (down 58.13% YoY).

During the quarter, the company registered a total gas sales volume of 8.86 million metric standard cubic metre per day (mmscmd), a growth of 22% sequentially. This was due to the sharp correction in the spot LNG prices, which the company decided to pass on to its industrial customers to improve their competitiveness.

Industrial sales volume was 5.36 mmscmd and CNG sales volume was 2.53 mmscmd in Q4 FY23. PNG domestic and commercial sales volumes during the period under review aggregated to 0.83 mmscmd and 0.14 mmscmd, respectively.

The compressed natural gas (CNG) category continued to witness strong momentum, as the consumer started to benefit from favourable government policies announced to protect the interest of CNG and residential piped natural gas (PNG) users. The central government implemented APM gas policy capping the price of APM gas at $6.5 Immbtu whereas the state government reduced VAT from 15% to 5% thereby making CNG/PNG more affordable, added the company.

Gujarat Gas' net profit rose 17.8% to Rs 1,525.47 crore on 1.8% increase in net sales to Rs 16,759.40 crore in FY23 over FY22.

During the year, the company added close to 1,80,000 new domestic customers, 102 CNG stations, more than 1200 commercial & industrial customers (with a cumulative volume close to 7,00,000 scmd) in FY 22-23. Similarly, for the quarter, the company connected over 50,000 new domestic customers, added 60 CNG stations and commissioned over 400 commercial & industrial customers.

Meanwhile, the board also recommended dividend Rs 6.65 per equity share for the financial year 2022-23, subject to approval of shareholders.

The State Government of Gujarat announced a policy for minimum levels of dividend distribution and bonus shares for state PSUs. The state government has mandated a minimum of 30% of profit after tax or 5% of net worth, whichever is higher to be a minimum level of dividend declared for shareholders. However, only the minimum level and maximum permissible level of dividend should be declared.

Gujarat Gas (GGL) is India's largest CGD company, with 27 CGD licenses spread across 43 districts in six states and one union territory. GGL is engaged in distribution of natural gas (piped and compressed) and currently supplies PNG to industrial, commercial and domestic customers along with CNG to the transportation sector.

The scrip jumped 5.57% to currently trade at Rs 488.80 on the BSE.