December 05, 2016 / 14:19 IST
GSPL’s Q2PAT at Rs 1.3 bn was higher than our estimate of Rs 1.1 bn, as dividend income of Rs 90 mn from Gujarat Gas (GGAS) propped other income. Volume declined to 24.6 mmscmd (down 2% QoQ), as gas off-take from stranded power plants declined. Tariff was flat QoQ at Rs 1.07/mscm. Opex rose 43% QoQ due to higher maintenance costs. Maintenance costs are lumpy and remained flat on a half-yearly basis.
We expect GSPL’s blended tariff to increase by 15% in FY17, as PNGRB amends tariff calculation methodology to address industry concerns. Gas volumes would also pick up given higher demand from power sector and start-up of Mundra LNG terminal (in FY18). Higher tariff and volumes to drive 21% EPS CAGR.
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