Gujarat Gas Protecting Margin Amid Higher Volume Offtake: Motilal Oswal
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Motilal Oswal Report
Gujarat Gas Ltd. has raised prices by approximately Rs 5/standard cubic meter for Morbi customers, taking its industrial gas price realisation to ~Rs 33/Rs 34.8 per scm for ceramic/non-ceramic customers.
The pricing action follows the recent spike in spot liquefied natural gas prices.
The company has been agile and aggressive with its pricing strategies, striking a balance between economics of gas and alternate fuel prices.
During FY21, on the back of huge volatility in global commodity prices, it increased the discount to Morbi customers in H1 (by ~Rs 4/scm), but rolled that back and took a price hike in H2.
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