Gujarat Gas Q1 Review - Ecstatic Margins; Unlikely To Sustain: Motilal Oswal
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Motilal Oswal Report
Gujarat Gas Ltd. reported a beat on our numbers, driven by better-than-estimated Ebitda/ standard cubic meter (Rs 7.9), while volumes were in-line (at 10 million metric standard cubic meter per day, with Morbi at 5.6mmscmd).
The gross margin stood at Rs 10.4/ standard cubic meter (versus our estimate of Rs 7.8), led by lower gas costs.
In Q1 FY22, Gujarat Gas began procuring 1.33mmscmd of gas from the Barmer field in Rajasthan (in addition to 0.67mmscmd gas from the KG Basin in the previous quarter).
Thus, long-term gas sourcing for the company stands at 6mmscmd (versus 4.2mmscmd earlier).
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