Gujarat Gas Q1 Review - Superlative Performance, But Cautious Q2 Likely: Prabhudas Lilladher
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Prabhudas Lilladher Report
We increase our FY22/23E earnings by 7%/3% to factor improvement in margins.
Gujarat Gas Ltd. reported strong results with Ebitda/profit after tax of Rs 7.2 billion (up 30% QoQ; our estimate Rs 4.9 billion) and Rs 4.8 billion (up 36% QoQ; our estimate Rs 3 billion) respectively, due to record margins of Rs 7.9/ standard cubic meter (Q4 FY21 Rs 5.1).
We remain constructive on Gujarat Gas volume prospects as imposition of 200-350% import duty on Chinese imports to U.S. has helped domestic exporters in Morbi, which is India’s ceramic hub and accounts for ~60% of the company's volumes.
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