Gujarat Gas: Analysts meet - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Gujarat Gas: Analysts meet

Mar 9, 2000

Gujarat Gas (GGCL) reported impressive results for the nine-month period ended December 1999. The company reported a turnover of Rs 18.30 m on sales of 1 million cubic metres per day of gas. GGCL’s operating margin stands at around 22%. (In India around 60 million cubic metres of gas is produced per day.)

  Dec 1999
(9 months)
Dec 1998
(9 months)
Income from operations 1834.14 1351.96
Other Income 78.55 96.30
Total expenditure 1385.85 978.14
Interest 84.09 12.72
Depreciation 82.42 52.23
PBT 360.34 405.17
Tax 70.34 102.69
PAT 290.00 128.25
Equity 128.30 128.30
EPS 22.60 10.00

British Gas (BG) owns 65% of the Rs 128.30 million equity of the company. The company is mainly a distributor of gas in the state of Gujarat. It buys gas from Gujarat State Petroleum Corporation (GSPCL) and Gas Authority of India and sells it to residential, industrial and commercial users (such as hotels, restaurants etc).

The company has already put in place a pipeline between Hazira and Ankleshwar to transmit gas. BG is setting up its own terminal at Pipavav (Gujarat) which will have the capacity of 5 million cubic metres of gas per day. Gujarat Gas will be able to source gas from its parent’s terminal apart from GSPCL and GAIL.

GGCL’s volumes are expected to soar to 1.5 million in the coming year (the company has changed its calender year to December) and is expected to report a turnover in the range of Rs 3.40 bn. (The company’s average realisations are in the range of Rs 7.50 per cubic metre.) It’s interest burden in the current year is also expected to go down since it plans to prepay its debt (it borrowed Rs 8 bn for setting up the Hazira Ankleshwar Pipeline which went on stream last year).

Another upside for the stock could be from the laying down of optic fibre cable alongside its pipeline. This would provide it further revenues from the sale of bandwidth to cable operators and the telecom companies. However the management refused to give any further information about the plans for this venture. The company has also tied up with ICICI for providing financial services such as car finance, credit cards etc since its already owns a database of its customers. It would share the credit appraisal of its customers along with ICICI and earn fee–based income for provision of these services to its gas customers.


Equitymaster requests your view! Post a comment on "Gujarat Gas: Analysts meet". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

GUJARAT GAS COMPANY SHARE PRICE


May 26, 2015 (Close)

TRACK GUJARAT GAS COMPANY

  • Track your investment in GUJARAT GAS COMPANY with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS