Gujarat State Petronet (GSPL) Q4 07/08 earnings summary

Executive summary

• FY08 total income rose 34% YoY to Rs447.28 crore; EBITDA increased 38% to Rs393.86 crore and PAT rose 12% to Rs99.92 crore.

• Gas transport volume reached 6,144.92 MMSCM, up from 5,246.46 MMSCM; the operating grid covered ~1,130 km with 100% availability and no accidents.

• A 5% dividend was recommended; paid-up capital increased to Rs562.01 crore after preferential IFC allotment and ESOP share issuance.

Financial highlights

• Total income was Rs447.28 crore vs Rs335.02 crore in FY07; gas transportation income was Rs417.89 crore vs Rs317.56 crore.

• PBT was Rs149.15 crore vs Rs137.26 crore; PAT was Rs99.92 crore vs Rs89.38 crore.

• EBITDA was reported at Rs393.86 crore vs Rs285.17 crore, up 38% YoY.

• Depreciation increased to Rs163.22 crore from Rs102.61 crore; interest and financial charges rose to Rs81.51 crore from Rs45.65 crore.

Outlook and guidance

• Pipeline capacity was built ahead of expected Gujarat gas demand growth; power and fertilizer sectors, industrial clusters and city-gas networks were identified as demand drivers.

• Pipeline expansion beyond Gujarat was initiated; future projects included Darod–Jafrabad, Dahej network and Mehsana–Palanpur pipelines.

• A rolling three-year manpower plan targeted growth from 126 employees at FY08-end to 283 by 2009.