Gujarat Gas Q2 results: Net profit drops 26% on lower selling prices

Indian city gas distributor Gujarat Gas posted a more than 26% drop in second-quarter profit on Thursday, hurt by lower selling prices and steep competition.

Standalone net profit after tax fell to 2.98 billion rupees ($35.82 million) in the three months ended Sept. 30 from 4.04 billion rupees a year earlier.

Revenue from operations dropped more than 2% to 39.91 billion rupees.

City gas distributors have cut their prices this year to pass on the benefits of falling global gas prices amid stringent competition.

For the sector, volume growth is key as gas prices have slid from fiscal 2023 levels, analysts said, adding rising demand for the cleaner propane fuel would also hurt their bottomline.

However, Peers Indraprastha Gas and Mahanagar Gas have posted a rise in their quarterly profit, helped by lower expenses and strong demand.

Gujarat Gas had reported a profit fall in the previous two quarters as well.