Gujarat Energy (GUJENERGY) Q4 15/16 earnings summary

Executive summary

• FY16 revenue and earnings declined sharply YoY, while residential PNG and transport CNG volumes grew; operating cash flow remained positive at Rs. 655.42 crore.

• Expansion continued through pipeline investment, new geographic areas and CNG infrastructure; the network served 19 districts with 233 operational CNG stations.

Financial highlights

• Total income was Rs. 6,150.53 crore vs. Rs. 9,113.40 crore in FY15; net revenue was Rs. 6,105.86 crore vs. Rs. 9,006.26 crore.

• PBT was Rs. 252.25 crore vs. Rs. 641.44 crore; PAT was Rs. 152.95 crore vs. Rs. 443.58 crore.

• Exceptional expense of Rs. 25.62 crore related to amalgamation stamp duty and other scheme costs; FY15 included Rs. 0.82 crore of exceptional items.

• Operating cash flow was Rs. 655.42 crore vs. Rs. 1,094.37 crore; fixed-asset purchases including CWIP and capital advances were Rs. 575.99 crore.

Outlook and guidance

• Plans target top-line and bottom-line growth through expansion into new geographies and increased volumes across existing markets.

• Domestic gas allocation for CNG transport and PNG households, alongside lower allocated gas prices, supported plans to accelerate customer penetration and promotional activity.

• Bids were submitted for eight new Gujarat geographic areas; Bid Round VI awards were expected in FY17.