Gujarat State Petronet Ltd - 3QFY13 result expectations - Ambit

(GUJS IN, mcap US$752mn, BUY, TP Rs88, 24% upside)

Analyst: Dayanand Mittal, dayanandmittal@ambitcapital.com, Tel: +91 22 3043 3202

Gujarat State Petronet (GSPL) will declare its results today. We expect the company to deliver a PAT of Rs1,123mn, 6% lower than Bloomberg's consensus of Rs1,197mn. We have assumed GSPL's transmission volumes to decline ~5% QoQ to 27.5mmcmd in 3QFY13 due to the decline in RIL's KG gas production in 3QFY13 (down 4.9mmcmd QoQ). We have assumed weighted average transmission tariff at Rs930/tcm, higher than the Rs860/tcm approved by the PNGRB, due to the incremental revenue from the 'take-or-pay' clause.

Source : Equity Bulls

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