Gujarat Gas spurts after Q2 net profit soars

Gujarat Gas Company surged 12.78% to Rs 183.05 at 10:06 IST on BSE after consolidated net profit surged 90.24% to Rs 100.60 crore on 2.49% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q2 June 2012.

The result was announced after market hours on Wednesday, 7 August 2013.

Meanwhile, the S&P BSE Sensex was up 4.37 points, or 0.02%, to 18,669.25.

On BSE, 14,693 shares were traded in the counter as against an average daily volume of 5,757 shares in the past one quarter.

The stock hit a high of Rs 192.50 and a low of Rs 171.30 so far during the day. The stock had hit a 52-week low of Rs 159 on Wednesday, 7 August 2013. The stock had hit a 52-week high of Rs 352.50 on 1 October 2012.

The stock had underperformed the market over the past one month till 7 August 2013, sliding 21.46% compared with the Sensex's 4.26% fall. The scrip had also underperformed the market in past one quarter, falling 35.44% as against Sensex's 6.15% fall.

The small-cap company has an equity capital of Rs 25.65 crore. Face value per share is Rs 2.

Gujarat Gas Company's consolidated net profit jumped 69.08% to Rs 100.60 crore on 2.11% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q1 March 2012.

The company said the total volume of gas sold during the quarter was 239 million metric standard cubic meters (mmscm) compared to 264 mmscm in the preceding quarter. While additional volumes have been commissioned in all the segments, volumes in the industrial segment have been undergoing a churn with increasing price of gas.

The company said it connected more than 17,500 new residential customers during the quarter, taking the total number of new domestic connections to 28,500 till June 2013. The company also commissioned more than 43,000 standard cubic meters of gas per day (scmd) of new volumes in the industrial sector during the quarter.

Speaking on the occasion of the results, Mr. Sugata Sircar, managing director, said "Re-gasified liquefied natural gas (RLNG) cost came off the peak levels it had reached in the immediately preceding quarter, thereby enabling some recovery of margins which were impacted in the preceding quarter. RLNG continues to be a significant portion of the sourcing portfolio. We continue to carefully balance between volumes and prices to sustain value."

Gujarat Gas Company, a subsidiary of GDNL, currently distributes approximately 2.8 million metric standard cubic metres per day (mmscmd) of natural gas. GGCL continues to be India's premier gas distribution company with a proven expertise in distributing gas to the entire range of customers - Industrial, Commercial, Domestic and CNG. GGCL distributes gas to about 404,000 industrial, commercial and domestic customers through its pipeline network and CNG to over 200,000 vehicles through 56 retail outlets.

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