Gujarat Gas Reports Profit Surge Despite Revenue Dip in Q1
Gujarat Gas Limited (GGL) reported a 14% increase in net profit to ₹327.00 crore for Q1, despite a 5.2% decline in revenue to ₹4,065.00 crore. The company achieved its highest-ever CNG volume of 3.33 mmscmd, up 3.4% from the previous quarter. EBITDA rose 11% to ₹579.00 crore. GGL added over 35,000 new domestic PNG connections, expanding its customer base to 23.02 lakh households. The Board approved plans to enter the Propane/LPG market for industrial customers. The company continues to focus on CNG network expansion through the FDODO model.

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Gujarat Gas Limited (GGL), a leading natural gas distribution company, has reported a significant increase in profitability for the first quarter, despite a slight decline in revenue. The company's financial results, approved by its Board of Directors on August 5, reveal a mixed performance with improved bottom-line figures.
Quarterly Financial Highlights
GGL's net profit for Q1 stood at ₹327.00 crore, marking a substantial 14% increase from ₹287.00 crore in the previous quarter. This profit growth is particularly noteworthy given the challenging market conditions and a marginal decrease in revenue.
The company's revenue from operations for Q1 was ₹4,065.00 crore, down from ₹4,289.00 crore in the previous quarter, representing a 5.2% quarter-on-quarter decline. Despite this top-line contraction, GGL managed to improve its profitability through effective cost management and operational efficiencies.
Operational Performance
Gujarat Gas demonstrated strong operational performance, particularly in its CNG (Compressed Natural Gas) segment. The company achieved its highest-ever CNG volume of 3.33 mmscmd (million metric standard cubic meters per day) in Q1, up from 3.22 mmscmd in the previous quarter, reflecting a robust 3.4% growth.
The company's domestic PNG (Piped Natural Gas) customer base continued to expand, with over 35,000 new connections added during the quarter. GGL now provides natural gas to more than 23.02 lakh households across six states and one union territory.
Financial Metrics
GGL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 reached ₹579.00 crore, an 11% increase compared to ₹524.00 crore in the previous quarter. This improvement in EBITDA margin indicates the company's ability to manage costs effectively and maintain operational efficiency.
Business Development Initiatives
In a strategic move to diversify its energy portfolio, the Board of Directors has approved plans for Gujarat Gas to undertake sourcing and sale of Propane/LPG to industrial customers. This initiative aligns with the company's commitment to providing comprehensive energy solutions and strengthens its position as a total energy solution provider.
Future Outlook
Gujarat Gas continues to focus on expanding its CNG network, with plans to accelerate growth through the FDODO (Franchise-Owned Dealer-Operated) model. The company has already signed agreements with approximately 69 dealers, which is expected to boost its market presence and service delivery.
Milind Torawane, IAS, Managing Director of Gujarat Gas Limited, commented on the results, stating, "Our Q1 performance demonstrates the resilience of our business model and our ability to drive profitability even in challenging market conditions. The growth in CNG volumes and the expansion of our customer base reflect the strong demand for clean energy solutions. Our venture into Propane/LPG supply for industrial customers is a strategic step towards becoming a comprehensive energy provider."
As Gujarat Gas continues to navigate the dynamic energy market, its focus on operational excellence, customer base expansion, and diversification of energy offerings positions the company for sustained growth in the coming quarters.
Note: All figures are in Indian Rupees (₹) and 'crore' denotes 10 million.
Historical Stock Returns for Gujarat Gas
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+1.48% | +0.80% | -9.14% | -2.86% | -30.68% | +39.24% |