The Gujarat Gas board has approved an equity investment of Rs 100 crores in equity shares of GSPC LNG. The investment is aimed to have better synergy and integration in the Gas Value chain. GGL’s shareholding in GSPC LNG would be 7.87 % post-acquisition of equity shares.
The acquisition follows the significant uptick seen in Gujarat Gas‘ sales volume. In Q1FY24, its sales volumes increased to 9.22 mmscmd compared to 8.86 mmscmd in Q4FY23. The industrial sales volumes increased 10% QoQ to 5.88 mmscmd from 5.36 mmscmd in the preceding quarter. This was due to softer spot LNG prices, the benefit of which was passed to industrial customers to make natural gas more competitive to alternate fuels.
The company also achieved the highest-ever average CNG sales of 2.61 mmscmd in Q1FY24 on the back of investments in CNG station infrastructure coupled with favourable government policies of reduction in APM gas prices and lower VAT rates.
During Q1, Gujarat Gas added more than 46,000 new domestic customers, 225 commercial customers and commissioned 36 new industrial customers (with a cumulative volume close to 1,09,000 scmd). As on June 30, the company has a signed volume of – 4,27,000 scmd yet to be commissioned.
However, its overall revenue from Operations came in lower at Rs. 3,924 crore in Q1FY24 compared to Rs 5,303 crore for the corresponding quarter previous fiscal. The reduction in Revenue from Operations mainly reflects lower selling prices. The Standalone Profit After Tax (PAT) for the current quarter is Rs 215 crore as compared to Rs 381 crore in Q1FY23.
