Gujarat Gas Q2: Net profit declines 27% YoY to Rs 296 crore; stock trades in green

Shares of Gujarat Gas were trading in the green on November 3 despite a 27 percent drop in Q2 profits to Rs 296 crore. At 9:27 am, the Gujarat Gas stock was trading 1.23 percent higher at Rs 415 on the NSE.

Gujarat Gas Limited on November 2 reported consolidated net profit of Rs 296.25 crore in the second quarter of financial year 2023-24, a decline of 26.7 percent from the year-ago period.

The city gas distribution company’s net profit was Rs 404.41 crore in the same period last year. However, net profit increased 37 percent sequentially as the company’s profit was Rs 215.95 crore in the previous quarter.

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Its revenue from operations also fell in the quarter ending September 30 to Rs 3,991.15 crore compared to Rs 4,107.83 crore in Q2FY23.

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Earnings before interest, tax, depreciation and amortization (EBITDA) came in at Rs 524.87 crore in the second quarter, 20.7 percent lower than last year. The company’s EBITDA was Rs 661.77 crore in the corresponding period last year.

Brokerage Views

Brokerage firm Motilal Oswal is bullish on Gujarat Gas and has recommended a ‘buy’ rating on the stock in a post-result flash report. The report further stated that, “the company added 221 commercial and 61 new industrial customers during the quarter and its 1HFY24 EBITDA was 46 percent of our full-year estimate for FY24.”

Stock Performance

Gujarat Gas stock has lost 13.59 percent of its value over the last six months. The benchmark Nifty50 index has given a return of 5.24 percent over the same duration.

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