Capitaline

Results 03-Aug-23

Analysis

Gujarat Gas

Lower prices impacted revenues

Gujarat Gas consolidated net sales declined 26.86% to Rs 3781.51 crore in Q1FY24 compared to Q1FY23. The reduction in revenue from Operations mainly reflects lower selling prices. Sales volumes increased to 9.22 mmscmd in Q1FY24 compared to 8.86 mmscmd in the preceding quarter ended on 31 st March 2023. The industrial sales volumes increased to 5.88 mmscmd from 5.36 mmscmd in preceding quarter, an increase of 10%. This was due to softer spot LNG prices, benefit of which was passed to industrial customers to make natural gas more competitive to alternate fuels. The company has achieved highest ever average CNG sales of 2.61 mmscmd for the quarter ended on 30th June 2023, on the back of investments in CNG station infrastructure coupled with favourable government policies of reduction in APM gas prices and lower VAT rates.

Operating profit margin has declined from 11.73% to 10.26%, leading to 36.04% decline in operating profit to Rs 388.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 83.13% to 81.83%. Employee cost increased from 0.91% to 1.37%. Other expenses rose from 4.23% to 6.54%.

Other income rose 25.53% to Rs 23.85 crore. PBIDT fell 34.17% to Rs 411.85 crore. Provision for interest fell 45.62% to Rs 7.38 crore.

PBDT fell 33.91% to Rs 404.47 crore. Provision for depreciation rose 11.58% to Rs 115.11 crore.

Profit before tax down 43.14% to Rs 289.36 crore. Share of profit/loss was 10.26% higher at Rs 0.86 crore. Provision for tax was expense of Rs 74.27 crore, compared to Rs 127.76 crore. Effective tax rate was 25.59% compared to 25.07%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 43.45% to Rs 215.95 crore.

During the quarter, the company added more than 46,000 new domestic customer, 225 commercial customers and commissioned 36 new industrial customers (with a cumulative volume close to 1,09,000 scmd). As on 30th June 2023, the company has a signed volume of 4,27,000 scmd yet to be commissioned.

The Board of Directors of Gujarat Gas Limited in its meeting held on 2nd August, 2023 approved Equity Investment of Rs 100 crore in equity shares of GSPC LNG Limited. The investment is aimed to have better synergy and integration in the Gas Value chain. GGL`s shareholding in GSPC LNG Limited would be 7.87 % post acquisition of equity shares.

Promoters’ stake was 60.89% as of 30 June 2023 ,compared to 60.89% as of 30 June 2022.

Full year results analysis

Net sales of Gujarat Gas have increased 1.84% to Rs 16759.4 crore. Operating profit margin has jumped from 12.62% to 14.27%, leading to 15.20% rise in operating profit to Rs 2,391.99 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 81.66% to 79.20%. Employee cost increased from 1.16% to 1.17%. Other expenses rose from 4.57% to 5.36%.

Other income rose 11.51% to Rs 101.33 crore. PBIDT rose 15.05% to Rs 2493.32 crore. Provision for interest fell 28.99% to Rs 40.35 crore. Loan funds declined from Rs 628.85 crore as of 31 March 2022 to Rs 152.32 crore as of 31 March 2023. Inventories rose to Rs 61.18 crore as of 31 March 2023 from Rs 53.39 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,021.15 crore as of 31 March 2023 compared to Rs 930.05 crore as of 31 March 2022. Cash and bank balance rose to Rs 680.98 crore as of 31 March 2023 from Rs 21.13 crore as of 31 March 2022. Investments rose to Rs 30.41 crore as of 31 March 2023 from Rs 22.39 crore as of 31 March 2022 .

PBDT rose 16.24% to Rs 2452.97 crore. Provision for depreciation rose 11.26% to Rs 428.26 crore. Fixed assets increased to Rs 7,819.11 crore as of 31 March 2023 from Rs 7,193.19 crore as of 31 March 2022. Intangible assets increased from Rs 430.31 crore to Rs 501.67 crore.

Profit before tax grew 17.34% to Rs 2,024.71 crore. Share of profit/loss was 76.54% higher at Rs 2.86 crore. Provision for tax was expense of Rs 499.19 crore, compared to Rs 427.79 crore. Effective tax rate was 24.62% compared to 24.94%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 18.72% to Rs 1,528.38 crore.

Equity capital stood at Rs 137.68 crore as of 31 March 2023 to Rs 137.68 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 60.89% as of 31 March 2023 compared to 60.89% as of 31 March 2022.

The scrip trades at around Rs 472

Gujarat Gas : Consolidated Results
Particulars	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	3,781.51	5,170.08	-27	16,759.40	16,456.22	2
OPM (%)	10.3	11.7		14.3	12.6
OP	388	606.61	-36	2,391.99	2,076.30	15
Other Inc.	23.85	19	26	101.33	90.87	12
PBIDT	411.85	625.61	-34	2,493.32	2,167.17	15
Interest	7.38	13.57	-46	40.35	56.82	-29
PBDT	404.47	612.04	-34	2,452.97	2,110.35	16
Depreciation	115.11	103.16	12	428.26	384.91	11
PBT	289.36	508.88	-43	2024.71	1725.44	17
Share of Profit/(Loss) from Associates	0.86	0.78	10	2.86	1.62	77
PBT before EO	290.22	509.66	-43	2027.57	1727.06	17
EO Income	0	0	-	0	-11.9	-
PBT after EO	290.22	509.66	-43	2027.57	1715.16	18
Taxation	74.27	127.76	-42	499.19	427.79	17
PAT	215.95	381.9	-43	1528.38	1287.37	19
Minority Interest (MI)	0	0	-	0	0	-
Net profit	215.95	381.9	-43	1528.38	1287.37	19
EPS (Rs)*	#	#		22.2	18.8
Notes
* EPS is on current equity of Rs 137.68 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Gujarat Gas consolidated net profit rises 202.24% in the December 2022 quarter
( Results - Announcements 13-Feb-23 14:47 )

Gujarat Gas standalone net profit rises 204.49% in the December 2022 quarter
( Results - Announcements 13-Feb-23 14:19 )

Gujarat Gas to discuss results
( Corporate News - 31-Jan-24 11:25 )

Gujarat Gas announces board meeting date
( Corporate News - 25-Jan-23 12:45 )

Gujarat Gas to hold board meeting
( Corporate News - 25-Apr-23 11:14 )

Gujarat Gas consolidated net profit declines 8.04% in the September 2020 quarter
( Results - Announcements 05-Nov-20 18:07 )

Gujarat Gas receives revision in credit ratings for bank facilities
( Corporate News - 06-Jul-23 18:35 )

Gujarat Gas
( Results - Analysis 03-Aug-23 08:31 )

Gujarat Gas fixes record date for sub-division of shares
( Market Beat - Reports 20-Dec-18 09:30 )

CARE affirms ratings assigned to Gujarat Gas
( Corporate News - 28-Sep-22 16:45 )

Gujarat Gas announces resignation of director
( Corporate News - 27-Nov-19 16:46 )