Gujarat State Petronet Q3 Results Review


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. 

Gujarat State Petronet Ltd. reported a miss on our Ebitda estimate primarily due to lower-than-estimated transmission volume of 22.3 million metric standard cubic metre per day (our estimate at 26.7 mmscmd; -30% YoY, -9% QoQ).

However, implied tariff was in line with our estimate at Rs 1,678/million sandard cubic metre (+25% YoY).

Spot liquefied natural gas prices continue to fall to $17/metric million British thermal unit for March 2023 delivery from $29.7/mmBtu in Q3 FY23.

A further decline in prices is expected to result in a volume recovery. We remain optimistic on the long-term volume growth for the company and expect the same to report ~22% compound annual growth rate during FY23-25E.

Gujarat State Petronet is expected to benefit from the tariff reforms. The proposed capex for high pressure gas grid stands at Rs 45.4 billion up to FY32E, which would facilitate gas transportation from newer LNG terminals and obviate the need for a tariff cut.

Given the underperformance in Q3 FY23, we reduce our revenue estimates by 8%/8%/7%, Ebitda estimates by 10%/8%/8% and earnings per share estimates by 10%/9%/ 9% for FY23/FY24/FY25, respectively.

Click on the attachment to read the full report:


This 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.


Source link

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *