Gujarat Gas Limited — Investor Meet, 13-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Gujarat Gas Limited reported a revenue of ₹4,333 cr in Q3 FY25, up from ₹4,084 cr in the year-ago quarter, reflecting a healthy growth trajectory. The profit after tax stood at ₹222 cr, slightly increasing from ₹220 cr previously. EBITDA for the quarter was ₹439 cr, compared to ₹424 cr in the same quarter last year, with an EBITDA margin of ₹5.04 per SCM versus ₹5.03 the prior year. The company recorded an overall gas volume of 9.73 mmscmd, a 5% increase year-over-year.

**Future Outlook and Growth Drivers:** Management highlighted plans focused on increasing volumes through customer base expansion, anticipating continued growth in domestic and commercial segments. The installation of new CNG infrastructure remains a key priority, alongside a pilot project for hydrogen blending aimed at future ESG initiatives.

**Order Book and Operational Updates:** The company is actively securing new connections, adding 38,000 domestic customers over the quarter, bringing the total to over 2.2 million. Industrial volumes slightly dipped to 5.45 mmscmd, influenced by temporary shutdowns during the Diwali period; however, recovery is expected as manufacturing resumes.

**Analyst Q&A Insights:** Key inquiries during the call included margin pressures due to rising LNG prices, with management confirming an increase in pricing strategy to offset costs. Analyst concerns about sourcing contracts were addressed, noting no new contracts were signed in Q3 and ongoing negotiations to replace expired agreements.

**Market or Regulatory Updates:** The geopolitical landscape affecting gas supply dynamics was discussed. The management reiterated steady demand in the CNG segment due to price competitiveness against petrol and diesel, while potential regulatory changes could enhance operational efficiencies moving forward.

**Strategic Focus Areas:** Emphasizing a blend of expansion in newer geographic areas, management remains focused on maintaining a robust balance between optimizing margins and expanding gas network infrastructure.

**Investor Insight:** With the company’s demonstrated financial resilience and clear growth strategy, current metrics suggest a favorable outlook aligning with a ‘buy’ position, despite acknowledging market volatility and cost pressures.