In terms of operational progress in the new geographical areas (GAs), Gujarat Gas successfully added 13 new compressed natural gas (CNG) stations during first quarter (Q1) of the financial year 2020-21. It further plans to add about 60 new CNG stations this year, of the total 100 planned outlets.

In Q1 2020-21, Gujarat Gas reported a margin of Rs 4.9 per standard cubic meter (scm) amidst lockdown. Its consolidated net profit stood at Rs 590.7 million, declining by 74.76 per cent from the corresponding period last year. Meanwhile, its net profit margin in Q1 2020-21 stood at 5.33 per cent, reporting a decline of 3.43 per cent from the net profit margin of 8.76 per cent in Q1 2019-20. Further, Gujarat Gas earned consolidated net revenues of Rs 11.07 billion in Q1 2020-21, declining 58.54 per cent on a yearly basis from Rs 26.71 billion in Q1 2019-20. Its earnings before interest, tax, depreciation and amortisation stood at Rs 1.86 billion in Q1 2020-21, down by 60.35 per cent from Rs 4.68 billion in Q1 2019-20.

Comparative performance of Gujarat Gas Limited during the lockdown (Q1 2020-21 vs Q1 2019-20)

Source: Gujarat Gas Limited

While gas volumes dipped during the lockdown period, demand in industrial and CNG categories has been picking up substantially after partial relaxation for industries. According to Gujarat Gas, the gas demand is up to 5.8 mmscmd as of June 2020. The development of seven new GAs in Gujarat is also expected to result in volume growth for the company.