Gujarat Gas - Q1CY2013 Result Review - Angel Broking

Gujarat Gas reported disappointing 1QCY2013 results. The company's top line increased 6.1% yoy to Rs. 768cr mainly on account of higher realization partially offset by lower volumes. Natural gas volume sold declined by 13.2% yoy to 264mmscm during the quarter. The decline was mainly in the industrial PNG segment. The company's cost of goods sold increased by 8.1% yoy to Rs. 644cr on account of higher proportion of expensive RLNG sales coupled with INR depreciation against the US dollar. Hence, EBITDA declined by 5.6% yoy to Rs. 72cr. Other income declined by 10.3% yoy to Rs. 26cr. Consequently company's net profit declined by 9.2% yoy to Rs. 59cr.

We maintain our Neutral rating on the stock.

Source : Equity Bulls

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