Indraprastha Gas, Mahanagar Gas, Gujarat Gas benefit from lower gas costs aiding Q2 margins and volumes
Indraprastha Gas Ltd(IGL) have seen their stock price dip to 52-week lows in November. Gujarat Gas Ltd facing competition and volume pressure in its industrial segment also has seen its stock price see upside under check. Nevertheless all these companies have reported decent September quarter performances.
The operating performance of Indraprastha Gas, Gujarat Gas and Mahanagar Gas Ltd was lifted by lower natural gas prices. Analysts at Nuvama Institutional Equities said that the aggregate Ebitda grew 15% year on year and 5% sequentially for companies in their coverage universe. This was led by 89% and 25% YoY rise in Mahanagar Gas and Indraprastha Gas Ebitda.
Ebitda stands for Earnings before interest tax depreciatio n and amortisation. Also Read- Tata Technologies IPO: GMP jumps. Date, price, other details that you may like to know- Motilal Oswal Finacial Services Ltd in their result review said that City Gas Distribution companies' margins beat estimates (except for Mahanagar Gas)).
The Volumes were in line: Gujarat Gas Ltd totals sales volume too came in line with their estimate at 9.3mmscmd (million metric standard cubic meter per day) with Morbi volumes remaining flattish at 4mmscmd. Morbi cluster in Gujarat is the industrial cluster for gas supplies by Gujarat Gas. Gujarat Gas Ebitda margin at ₹5.8 per scm (standard Cubic meter) beat their estimate of ₹4.2 per scm.
Mahanagar Gas reported lower-than-estimated Ebitda of around ₹480 Crore versus their estimate of around ₹510 crore, mainly led by lower-than-estimated Ebitda per scm of ₹14.6 versus their estimate of ₹15.5. Volumes were in line with our estimates at 3.6mmscmd. IGL’s Ebitda of ₹660 Crore beat their estimate, led by higher-than-estimated Ebitda per scm at
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