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Gujarat Gas Ltd (BOM:539336) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Market ...

In This Article:

  • Revenue from Operations: INR 3,949 crores for Q2 FY25, compared to INR 3,991 crores in the corresponding quarter of the previous year.

  • Profit After Tax: INR 415 crores for Q2 FY25, an increase of approximately 3% from INR 401 crores in the previous year.

  • EBITDA: INR 553 crores for Q2 FY25, up from INR 526 crores in the corresponding quarter of the previous year, marking an increase of close to 5%.

  • EBITDA per MSCMD: INR 6.86, compared to INR 6.14 in the previous year.

  • Industrial Sales Volume: 4.91 MMSCM for the quarter, down from 5.86 MMSCM in the previous year.

  • CNG Sales Volume: 2.93 MMSCM for Q2 FY25, with a 12% annual growth.

  • New Domestic Connections: 38,500 new domestic customers added during the quarter.

  • Infrastructure Investment: Close to INR 130 crores invested in infrastructure during the quarter, aggregating to INR 330 crores for the half-year.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Gujarat Gas Ltd (BOM:539336) reported a 12% year-over-year increase in CNG sales within Gujarat and a 25% increase outside Gujarat, indicating strong growth in the CNG segment.

  • The company has successfully added nine new CNG stations, enhancing accessibility and supporting future growth.

  • Gujarat Gas Ltd (BOM:539336) has maintained a high digital collection rate, with over 98% of collections coming through digital modes.

  • The company reported a profit after tax increase of approximately 3% compared to the corresponding quarter of the previous year.

  • Gujarat Gas Ltd (BOM:539336) is actively expanding its infrastructure, with significant investments in pipeline networks and CNG stations, which is expected to drive future volume growth.

Negative Points

  • The industrial segment experienced a decline in sales volume from 5.86 MMSCMD in the previous year to 4.91 MMSCMD, attributed to geopolitical factors and increased LNG prices.

  • The company faced a significant increase in LNG prices, impacting industrial pricing and margins.

  • There is a noted shortfall in APM gas allocation, which has been partially compensated by more expensive new well gas.

  • Sequential decline in CNG volumes was reported, attributed to the monsoon season and a CNG price hike in August.

  • The company is facing challenges in maintaining growth in the industrial customer base outside of Morbi, with slower than expected expansion in new industrial areas.

Q & A Highlights

Q: Can you provide a breakdown of CNG volume growth in Gujarat versus outside Gujarat? A: 87% of the CNG volume comes from Gujarat, while 13% is from outside Gujarat.