Gujarat Gas Q2 Results: Profit Falls 7% On Lower Volumes, But Beats Estimates
Gujarat Gas posted a net profit of Rs 309 crore in the September quarter, surpassing Bloomberg's estimate of Rs 293 crore.
File image of Gujarat Gas' CNG filling station. (Photo source: Company website)
Gujarat Gas Ltd.'s consolidated net profit fell 7% sequentially in the quarter ended Sept. 30, but topped analysts' estimates.
The city gas distributor's net profit came in at Rs 309 crore in the July–September period, compared to Rs 331 crore in the year-ago quarter, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had shared a consensus estimate of Rs 293 crore.
The company's earnings were mainly impacted due to lower sales volumes that stood at 8.75 million metric standard cubic meter per day, which was 20% lower than the previous quarter.
Gujarat Gas Q2 Results Highlights (Consolidated, QoQ)
Revenue down 15% to Rs 3,782 crore versus Rs 4,450 crore (Bloomberg estimate: Rs 3,990 crore).
Ebitda down 4% to Rs 514 crore versus Rs 536 crore (Bloomberg estimate: Rs 485 crore).
Margin at 13.6% versus 12% (Bloomberg estimate: 12.2%).
Net profit down 7% to Rs 309 crore versus Rs 331 crore (Bloomberg estimate: Rs 293 crore).
Sales Volumes
The drop in sales volumes on a sequential basis was mainly driven by the industrial segment, whose sales volumes slumped by 30%.
The company's CNG volumes during the second quarter declined by 1.68%. Despite the downtick, the company stated that the category continues to witness strong momentum, as consumers are benefitting from favourable government policies.
During the July-September period, Gujarat Gas added more than 38,500 new domestic customers. Nine new CNG stations were also added during this period, as per a release.
The company also noted that the commission of new industrial customers during the quarter led to a volume addition of around 88,000 standard cubic meter per day.
"Moreover, as on Sept. 30, 2024, the company has a signed volume of ~5,27,000 scmd which will be commissioned in coming days," it added.
The quarterly results were declared by Gujarat Gas after the market hours. The company's shares had settled 2.94% higher at Rs 527.7 apiece on the BSE, compared to a 1.13% climb in the benchmark Sensex.
