Gujarat Gas Q3 Results Review - Margin Strength Offsets Continued Morbi Woes: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Gujarat Gas Ltd. has delivered a strong 2.4 times YoY increase in Ebitda to Rs 5.8 billion and a three times YoY jump in net earnings to Rs 3.7 billion in Q3 FY23, despite a material 36% YoY dip in overall volumes. Earnings came in ahead of our estimates of Rs 4.5 billion Ebitda/Rs 2.7 billion profit after tax. However, QoQ Ebitda/profit after tax declined 9%/8%, respectively. Lower volumes from the key region of Morbi have driven weakness seen over nine months-FY23 but with rising propane prices from Feb-23, we feel Q4 may see some revival in volume trends for Gujarat Gas. Earnings remain strong, driven by limited requirement of the costliest gas in the portfolio (spot liquefied natural gas) and sales realisation lagging cost declines by a wide margin. Going forward, the balancing act between volumes and margins will likely remain volatile, even as we believe softer gas price environment for both domestic and LNG and relatively stronger propane price environment could drive a steady improvement for FY24/25E earnings per share..Click on the attachment to read the full report:.More Research Reports On Gujarat Gas' Q3 FY23 Results Review.Volume Outlook Improves With Lower LNG Price: SystematixHigh Competitive Intensity Impact Outlook: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Gujarat Gas Q3 Results Review - Margin Strength Offsets Continued Morbi Woes: ICICI Securities

Going forward, the balancing act between volumes and margins will likely remain volatile.

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Gujarat Gas Q3 Results Review - Margin Strength Offsets Continued Morbi Woes: ICICI Securities

Going forward, the balancing act between volumes and margins will likely remain volatile.

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