Gujarat Gas Q3 Results Review - Subdued Volumes Although To Be Better In Coming Years: Motilal Oswal

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. .Motilal Oswal Report.Gujarat Gas Ltd.’s total volumes came in line with our estimate of 7.3 million metric standard cubic metre per day; Morbi volumes stood at 2 mmscmd with the current volumes also at similar levels. Ebitda margin was better than expected at Rs 8.7/standard cubic metre (our estimate of Rs 5/scm). Total consumption at Morbi across all fuels stands at 5.5- 6 mmscmd, suggesting a weak ceramic market. Liquefied petroleum gas prices are at a premium of Rs 1/scm (expected to rise further in March 2023), compared to gas currently. While Propane is trading at a discount of Rs 2/scm, its prices are likely to rise going forward. Spot LNG prices continue to fall to $17/metric million British thermal unit for March 2023 delivery from $29.7/mmBtu in Q3 FY23. A further cooling of these prices is expected to result in a volume recovery. We estimate an Ebitda/scm of Rs 7.7/Rs 6.2/Rs 6.2 in FY23/FY24/FY25, respectively, versus Rs 5.3 in FY22..Click on the attachment to read the full report:.More Research Reports On Gujarat Gas' Q3 FY23 Results Review.Volume Outlook Improves With Lower LNG Price: SystematixHigh Competitive Intensity Impact Outlook: Prabhudas LilladherMargin Strength Offsets Continued Morbi Woes: ICICI Securities.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 - Subdued Volumes Although To Be Better In Coming Years: Motilal Oswal

The company is likely to turn net cash in FY23, despite capex plans of Rs 30 billion over FY23-25.

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