ICICI Direct's research report on Gujarat Gas
Gujarat Gas’ Q4FY21 results were ahead of our estimates on the operational and profitability front. Revenues increased 28.6% YoY to Rs 3428.9 crore (our estimate: Rs 3465.1 crore) as sales volume jumped 22% YoY during the quarter. Sales volume at 12.1 mmscmd was above estimate of 11.7 mmscmd. Realisation was at Rs 31.4/scm (our estimate: Rs 32.9/scm). Gross margins at Rs 7/scm were in line with expectations. EBITDA was at Rs 554.3 crore (up 29.9% YoY) above our estimate of Rs 507.3 crore on account of better operating leverage. Subsequently, reported PAT increased 42.3% YoY to Rs 349.9 crore, above our estimate of Rs 302 crore.
Outlook
We maintain BUY rating on Gujarat Gas with a revised TP of Rs 655 (26x FY23E EPS, earlier TP Rs 505/share).
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