Sunday, November 7, 2021

GUJGAS Q2 PAT DOWN - 48 % | REVENUE UP 44%

     


Gujarat Gas Q2 PAT down -47.6% at Rs249.13cr on 88% spike in cost of gas procurement

Gujarat Gas Ltd reported 43.99% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs3,686cr


Gujarat Gas Ltd reported 43.99% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs3,686cr. The revenues were up 20.22% on a sequential basis compared to Rs3,066cr in the Jun-21 quarter.

Total sales volumes in the second quarter was up at 11.41 MMSCMD compared to 9.85 MMSCMD in the corresponding quarter last year. Industrial gases saw a growth of 10.6% at 8.69MMSCMD while CNG gas volumes were up 53% at 1.96 MMSCMD in Q2. Volumes of PNG domestic and PNG Industrial were smaller.

Net profits for the Sep-21 quarter were higher down -47.6% on yoy basis at Rs249.13cr. On a sequential basis, the net profit was lower by -47.8% compared to the Jun-21 quarter profits of Rs476.89cr.

Despite the strong growth in volumes across verticals, Gujarat Gas was constrained by the 87% spike in gas prices to Rs2,980cr. Since most of this spike in gas costs could not be passed on to the end customer, the profits have taken a hit in the quarter.

Net margins at 6.76% in the Sep-21 quarter was lower than 18.57% in the Sep-20 yoy quarter and also lower than 15.55% in Jun-21 sequential quarter.

Stock Outlook

Although PAT is lower , but stock is now consolidated after the recent correction. Now stock should be hold and can test 772 - 834 in mid term time frame.




Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.


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