Gujarat Gas Q3 Results Review - High Competitive Intensity Impact Outlook: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.Gujarat Gas Ltd. reported better than expected Q3 results with Ebitda and profit after tax of Rs 5.8 billion (-9% QoQ; our estimate: Rs 3.6 billion) and Rs 3.7 billion (-8.1% QoQ; our estimate: Rs 1.9 billion), led by higher than expected margins. Q3 industrial volumes were down to 4.1 million metric standard cubic metre per day (from Q4 FY21 peak of 9.6), as demand shifted to cheaper Propane of ~2.5 mmscmd. Further, drop in spot liquefied natural gas prices to ~$20/metric millon British thermal unit is positive and has helped the company reduce industrial gas prices by Rs 7/standard cubic metre to Rs 46 in Jan-23. However, propane prices need to be watched because they may emerge as significant competition in future. We like Gujarat Gas business model given strong downstream demand across ceramics, agrochemicals and pharma sector accompanied by compressed natural gas which will be a strong growth driver..Click on the attachment to read the full report:.Gujarat Gas Shares Fall After Jefferies Downgrade It To 'Underperform'.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gujarat Gas Q3 Results Review - High Competitive Intensity Impact Outlook: Prabhudas Lilladher

Sharp drop in spot LNG prices to ~$20 will help, but Gujarat Gas recently cut prices by Rs 7/scm to compete with propane.

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