State-owned Gujarat Gas Ltd raised the price of industrial gas by Rs 2.5 to Rs 43.33 standard cubic meter (scm), from the current level of Rs 40.83 per cubic meter effective September 1. , a source cited by CNBC-TV18 reported. According to the report, the price increase was driven by higher spot liquefied natural gas (LNG) prices.
This is the second price hike of Gujarat Gas in the month.
At the beginning of the year, the price of industrial gas was Rs 47.93/scm. After the fifth discount of Gujarat Gas in 2023, in May industrial gas price was Rs 38.43/m3. Finance
Earlier this month, Gujarat Gas reported a 43.4% decrease in consolidated net profit year-on-year to Rs 216 crore in the first quarter of the fiscal year 2023-24. The company reported EBITDA of Rs 412.71 crore in the first quarter of fiscal year 24, compared with 626.39 in the same period last year. Gujarat Gas said the total volume of gas sold in the quarter was 9.22 mmscmd (million standard cubic meters per day), compared with 8.86 mmscmd in the previous quarter. Industrial output increased by 10% qoq (Q4FY23) to 5.88 mmscmd.
“We reduced our FY24/25 EBITDA estimate to 12%/8% to create a lower margin, partially offset by a 2-3% increase in volume. As a result, our TP price has dropped to INR 570/share (from INR 600/share). Despite the short-term volatility in earnings based on the competitiveness of propane prices, we affirm BUY as we expect production growth to continue in the medium to long term, driven by gas consumption. growth in the industrial segment, the normalization of propane prices and the limited threat of electricity. vehicles,” JM Financial said in its latest note.
