Gujarat Gas (GUJGASLTD) Q2 24/25 earnings summary

Executive summary

• Announced a scheme of arrangement and amalgamation among GSPC Group companies to simplify structure, consolidate business presence, and unlock stakeholder value; regulatory approvals in progress.

• Operates in 27 geographical areas across six states and one union territory, with a network of over 41,700 km and 820 CNG stations as of September 30, 2024.

• Focused on ESG initiatives, including hydrogen blending, biogas injection, and major digitization drives.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024, with financials prepared in accordance with Ind AS and SEBI regulations.

• Commissioned the first Compressed Bio Gas offtake facility in Punjab, a state-first for any CGD company.

Financial highlights

• Revenue from operations for Q2 FY25 was ₹3,949 crore (standalone: ₹3,948.65 crore), slightly down from ₹3,991 crore in Q1 FY25 and from ₹4,615 crore in Q2 FY24.

• Standalone net profit for Q2 FY25 was ₹306.93 crore; consolidated net profit was ₹308.74 crore.

• EBITDA for Q2 FY25 stood at ₹553 crore, a 5% increase year-over-year; EBITDA per SCMD at ₹6.86.

• CNG volumes grew 12% year-over-year to 2.93 MMSCMD; total gas sales volume for Q2 FY25 was 8.75 MMSCMD.

• CapEx for H1 FY25 was ₹330 crore, with a full-year target of around ₹800 crore.

Outlook and guidance

• Scheme of Arrangement and amalgamation expected to be completed by August 2025, subject to regulatory and shareholder approvals.

• EBITDA margin guidance revised to 5%-6% for the remainder of FY25 and FY26.

• Volume growth guidance maintained at 5%-7% year-over-year, subject to price volatility and demand.

• Evaluating CNG price increases to offset higher gas procurement costs.