Gujarat Energy (GUJENERGY) Q4 14/15 earnings summary

Executive summary

• FY15 total income reached ₹9,113.40 crore and net profit ₹443.58 crore; results include the merged gas businesses, with FY14 revised to reflect the merger from 1 April 2013.

• Operations served 1M+ residential customers, 2,750+ industrial units and 234 CNG stations across a pipeline network exceeding 15,000 km.

• Growth plans combined network investment and new geographic areas with efforts to recover industrial volumes affected by cheaper alternative fuels.

Financial highlights

• Total income was ₹9,113.40 crore vs ₹7,907.50 crore in FY14; net revenue from operations was ₹9,006.26 crore vs ₹7,797.42 crore.

• Net profit rose to ₹443.58 crore from ₹28.43 crore; PBT was ₹641.44 crore vs ₹92.20 crore.

• Gross profit before interest, depreciation and tax was ₹1,212.30 crore vs ₹675.14 crore.

• Operating cash flow was ₹1,179.81 crore; investments supported pipeline expansion, network upgrades, residential connections and CNG infrastructure.

Outlook and guidance

• Natural gas demand was expected to rise, supported by policy measures, infrastructure expansion and expected stabilization in crude prices.

• Priorities included growing residential, commercial, transport and industrial volumes, expanding existing areas and developing greenfield areas won through competitive bids.

• Lower-cost domestic gas replacement volumes were secured to support CNG and household markets after domestic allocations changed.