State-run Gujarat Gas Ltd on Wednesday reported a 43.4 percent year-on-year (YoY) decline in net profit at Rs 215.1 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, Gujarat Gas posted a net profit of Rs 382 crore, the company said in a regulatory filing. CNBC-TV18 polls had predicted a profit of Rs 348 crore for the quarter under review.

Also, the board of directors of Gujarat Gas approved an equity investment of Rs 100 crore in equity shares of GSPC LNG Ltd. The investment is aimed to have better synergy and integration in the gas value chain. GGL's shareholding in GSPC LNG would be 7.87 percent post-acquisition of equity shares.

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In the quarter, total revenue stood at Rs Rs 3,924 crore during the period under review, down 26.2 percent against Rs 5,322 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted revenue of Rs 4,019 crore for the quarter under review.

At the operating level, EBITDA falls 30.8 percent to Rs 388 crore in the first quarter of FY24 of this fiscal over Rs 560 crore in the last quarter of FY23. EBITDA margin stood at 10.3 percent in the reporting quarter as compared to 14.3 percent in the corresponding period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Gujarat Gas registered overall revenue from operations of Rs 3,924 crore during the quarter ended on June 30, 2023, as against Rs 5,303 crore for the corresponding quarter previous year. The reduction in revenue from operations mainly reflects lower selling prices.

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For the quarter ended June 30, 2023, the company's sales volumes increased to 9.22 mmscmd compared to 8.86 mmscmd in the preceding quarter ended on March 31, 2023.

The industrial sales volumes increased to 5.88 mmscmd from 5.36 mmscmd in the preceding quarter, an increase of 10 percent. This was due to softer spot LNG prices, the benefit of which was passed to industrial customers to make natural gas more competitive to alternate fuels.

Gujarat Gas has achieved the highest-ever average CNG sales of 2.61 mmscmd for the quarter that ended on June 30, 2023, on the back of investments in CNG station infrastructure coupled with favourable government policies of reduction in APM gas prices and lower VAT rates.

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(Edited by : Pradeep John)