You are here: Home » Markets » News
Business Standard

Gujarat Gas hits new high; rallies 32% in four weeks on healthy Q4 results

As restrictions are being lifted gradually in many of company's operating areas, natural gas demand is likely to improve

Topics
Gujarat Gas | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

CNG

Shares of Company continued their upward journey, hitting a new high of Rs 674.80 after they advanced 6 per cent on the BSE in intra-day trade on Thursday. In the past four weeks, the stock of the integrated oil and gas firm has rallied 32 per cent after the company reported a strong set of numbers for the quarter ended March (Q4FY21). In comparison, the S&P BSE Sensex is up 5.6 per cent during the same period.

"reported a beat on our numbers, driven by better than-estimated EBITDA/scm (Rs 5.1) and volume growth (up 22 per cent YoY to 12.1mmscmd). Morbi volumes stood at 7.3 mmscmd (up 33 per cent YoY), while compressed natural gas (CNG) achieved highest ever quarterly volumes. Pivotal was addition of 150 new CNG stations in FY21 totaling to 559 CNG outlets (v/s IGL’s 573 stations)," analysts at Motilal Oswal Financial Services said in a post-results update.

In Q4FY21, reported a 28.6 per cent year on year increase in revenue at Rs 3,429 crore as sales volume jumped 22 per cent YoY to 12.1 mmscmd. Profit after tax (PAT) increased 42.3 per cent YoY to Rs 350 crore. Ebitda (earnings before interest, taxes, depreciation, and amortization) rose 29.9 per cent YoY at Rs 554 crore on account of better operating leverage.

The company's gas sales volume has shown a robust growth trajectory during the quarter under review. The company's average gas sales volume for the quarter was at 12.13 mmscmd, up by 22 per cent compared to corresponding quarter previous year. ln the industrial and CNG category, the gas sales volume grew by 24 per cent and 16 per cent, respectively compared to corresponding quarter previous year, and 5 per cent and 11 per cent respectively compared to the previous quarter.

The management said the restrictions imposed to curb the outbreak of recent Covid-19 wave had an impact in the natural gas demand mainly from CNG, industrial and commercial categories. As restrictions are being lifted gradually in many of company's operating areas, natural gas demand is likely to improve. The company's gas sales volume till date in the FY22 stands close to 10 mmscmd as against average gas sales of 9.39 mmscmd in FY21, it said.

"Any directive launched as a pollution control measure, or the impetus on growing gas consumption in India, would greatly benefit Gujarat Gas (v/s the other two incumbents – IGL and MAHGL – that have been under the purview of stricter norms/impetus since 2001 and prior). It would be the biggest beneficiary of any directive on Green Tax by Ministry of Road Transport and Highways (MoRHT)– as Gujarat thus far has no government directive on the use of CNG. Once gas is included under GST, GUJGA would benefit from increased volume offtake – as industrial consumers would be able to take input tax credits, thus lowering their gas feedstock cost," the brokerage firm said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 17 2021. 10:25 IST
RECOMMENDED FOR YOU
.