GSPL Q3 Review - Volumes Disappoint; Higher Tariffs, Other Income Drive The Profitability: Yes Securities

Yes securities Report

Gujarat State Petronet Ltd.'s Q3 FY24 performance presents a mixed picture, Ebitda and profit after profit after tax witnessed YoY growth of 41%/53%, QoQ comparison shows declines of 7.5%/51% due to higher other expenses and one-time dividend income in Q2.

Volumes fell short of expectations at 29.02 million metric standard cubic metre per day, impacted by weaker power demand. However, higher tariffs (Rs 1.63/scm) and strong YoY volume growth (30%) partially offset the volume weakness.

While managing cost pressures remains crucial, Gujarat State Petronet strategic expansion and increasing gas demand bode well for future growth.

We maintain an 'Add' rating on GSPL with a revised target price of Rs 387.

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