Gujarat Gas Q4 Review - Headwinds To Volumes, Margins, Probably Short-Term: ICICI Securities

A gauge wheel sits on pipework on the gas pipeline.  (Photographer: Krisztian Bocsi/Bloomberg)

Gujarat Gas Q4 Review - Headwinds To Volumes, Margins, Probably Short-Term: ICICI Securities

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ICICI Securities Report

Q4 FY21 standalone earnings per share of Gujarat Gas Ltd. is up 42% YoY driven by rise in Ebitda margin and surge in volumes to a record high.

FY21 recurring earning is up 39% YoY driven by 29% YoY rise in Ebitda margin; volumes fell 0.5% YoY due to Covid-19 impact in Q1.

FY22-to-date volumes are down to ~10 million metric standard cubic meter per day hit by Covid-19 second wave.

Once restrictions are lifted, volumes are likely to rebound above Q4 FY21 level.

Surge in spot liquefied natural gas is a headwind for margins though QoQ rise in margins in Q1 appears likely.

Click on the attachment to read the full report:

ICICI Securities Gujarat Gas Q4FY21 Result Update.pdf

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