- 10 Nov 2022
- ICICIdirect Research
Gujarat Gas reported Q2FY23 results that were broadly in line with our estimates on profitability frontGUJGASLTD - 477 Change: 1.50 (0.32 %)
Total volume declined 33% YoY and 22% QoQ to 7.62 mmscmd and was marginaly lower than estimated 7.8 mmscmd. Industrial PNG volume was at 4.47 mmscmd, down 48.6% YoY and 32.6% QoQ (our estimate: 4.5 mmscmd) on account of reduced offtake due to customer plant shutdown. Total PNG sales were down 43.9% YoY and 27.5% QoQ to 5.3 mmscmd. CNG sales were marginally lower than estimates at 2.3 mmscmd, up 18.4% YoY (down 4.9% QoQ) (our estimate: 2.6 mmscmd)
· Revenue increased 10% YoY to Rs 3976.5 crore (our estimate: Rs 3889.6 crore). Realisation stood at | 56.7/scm, up Rs 22.3/scm YoY and down Rs 1.5/scm QoQ. Raw material costs increased Rs 15.4/scm YoY but declined Rs 4.7/scm QoQ to Rs 43.8/scm. Subsequently, gross margins were Rs 13/scm (our estimate: Rs 12.1/scm). EBITDA stood at Rs 642.7 crore, up 52.7% YoY and 6% QoQ (our estimate: Rs 641.4 crore). EBITDA/scm was at Rs 9.2/scm, up Rs 5.2/scm YoY and Rs 2.4/scm QoQ (our estimate: Rs 9.3/scm)
· Reported PAT stood at Rs 403.9 crore, up 62.2% YoY and 6% QoQ (our estimate: Rs 414.5 crore)
Gujarat Gas remains one of the key players in the Indian CGD markets with high exposure to the industrial retail volumes. In the current quarter (Q3FY23E-TD), spot LNG price continue to trade at higher level. In the medium term, maintaining balance between volume and margin will be key to the company's performance.