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ICICI Direct Report
Gujarat State Petronet Ltd.’s operating revenue for Q1 FY21 fell 9.4% YoY to Rs 464.4 crore on account of a fall in transmission volumes.
Transmission volumes fell 13% YoY to 33.3 million metric standard cubic meter per day mainly due to lower city gas distribution offtake (14% of total volumes) and fertiliser (8% of total volumes) sectors led to YoY de-growth.
On a QoQ basis, volume offtake mix from refining/petrochemicals sector increased to 34% versus 29% and power sector’s offtake increased to 31% from 15% while CGD sector contribution went down significantly at 14% from 30%.
Going forward, we build in lower volumes in the near term as the Covid-19 led lockdown impacted fuel demand from the CGD sector and its offtake will witness growth from Q3 FY21E onwards.
In the long term, the company will be a beneficiary of increasing gas consumption and its connectivity to new liquefied natural gas terminals in Gujarat. We increase our FY21E volume estimate due to lower fall in Q1 FY21 volumes.
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