Gujarat State Petronet - March 2013 Results Preview - Motilal Oswal

- We expect GSPL to report net sales of INR2.5b and PAT of INR1.1b (down 11% YoY and 4% QoQ).

- We build lower gas transmission volumes at 26.3mmscmd in 4QFY13E (v/s 31.1mmscmd in 4QFY12 and 27.3mmscmd in 3QFY13) led by a decline in KG-D6 production.

- GSPL has won all the 3 bids for cross-country pipelines conducted by PNGRB last year. We await clarity on the timelines and other details regarding these pipelines.

- We build gas transmission volumes of 28.3mmscmd in FY13E and 29mmscmd in FY14E. We model average tariff at INR980/mscm in FY13E and INR950/mscm in FY14E. The stock trades at 7x FY15E EPS of INR9.4. Maintain Neutral.

Source : Equity Bulls

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