Gujarat Energy (GUJENERGY) Q4 16/17 earnings summary

Executive summary

• FY2016-17 net profit rose to Rs 219.50 crore from Rs 188.33 crore; total comprehensive income increased to Rs 176.83 crore from Rs 154.38 crore.

• Largest CGD operator nationally, serving 1.16 million residential customers, 12,341 commercial customers, 3,067 industrial units and 252 CNG stations across ~19,974 km of pipeline.

• Operating cash flow reached Rs 701.62 crore, supporting continued network expansion and customer connections.

Financial highlights

• Revenue from operations was Rs 5,237.87 crore vs Rs 6,245.48 crore in FY2015-16; total income was Rs 5,264.19 crore vs Rs 6,289.98 crore.

• PBT was Rs 303.33 crore vs Rs 253.71 crore; net profit was Rs 219.50 crore vs Rs 188.33 crore.

• Basic and diluted EPS were Rs 15.94 vs Rs 13.68; total comprehensive income was Rs 176.83 crore vs Rs 154.38 crore.

• Finance costs declined to Rs 208.96 crore from Rs 247.44 crore; depreciation and amortisation rose to Rs 257.33 crore from Rs 245.42 crore.

• FY2016-17 revenue included Rs 5,194.87 crore from natural gas sales; other operating revenue was Rs 43.00 crore.

Outlook and guidance

• FY2017-18 national economic growth was projected at 7.4%-7.6%; policy support and rising energy demand were expected to aid natural gas and CGD growth.

• Growth priorities: deepen PNG household, PNG commercial and CNG transport penetration; reinforce existing networks and rapidly develop the six newly won areas.

• Expansion plans target the licensed footprint of ~96,000 sq km across 22 districts, with new connections and CNG stations intended to support future revenue growth.