ICICI Direct: Gujarat State Petronet A Beneficiary Of Increasing Gas Consumption  
Gas pipelines of Gujarat State Petronet Ltd. (Source: Company website)

ICICI Direct: Gujarat State Petronet A Beneficiary Of Increasing Gas Consumption  

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Direct Gujarat State Petronet Company Update.pdf

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