InvestorQ : How did you find the quarterly results of Gujarat State Petronet Ltd?
Juvina Maggie made post

How did you find the quarterly results of Gujarat State Petronet Ltd?

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Deepa Salunkhe answered.
1 month ago
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For the quarter ended on September 2021, Gujarat State Petronet Ltd, or GSPL, reported 37.36% higher revenues at Rs.4,159 crore on a consolidated basis, including all its subsidiaries. Even if you look at revenues on a sequential basis, they were up a healthy 19.45% on a sharp revival from the COVID 2.0 quarter.

In terms of the overall volumes processed on the GSPL gas network, over 37.49 MMSCMD was seen in the Sep-21 quarter. This higher than the Jun-21 quarter but a tad lower than the comparable quarter in Sep-20 last year. Some of the major sectoral clients of GSPL in terms of demand include the city gas distributors (CGD), power, refinery, petrochemicals and fertilizers.

However, input costs put pressure on the bottom line of GSPL as the net profits for the Sep-21 quarter fell by -20.09% yoy to Rs.398.40 crore. Even if you look at the profits on a sequential basis compared to June 2021, the pressure of higher input inflation is quite evident. Net profit were lower by -21.8% compared to Jun-21 quarter profits.

The pressure on the bottom line principally came from the near doubling of raw material costs from Rs.1,479 crore in the Sep-20 quarter to Rs.2,861 crore in the Sep-21 quarter. This had a huge negative impact on the profits resulting in negative growth. While finance costs were lower in the face of debt reduction during the quarter this benefit was largely offset by the spike in input costs.

Net margins of Gujarat State Petronet at 9.58% in the Sep-21 quarter was sharply lower than 16.47% in the Sep-20 yoy quarter and also lower than the NPM of 14.63% in the Jun-21 sequential quarter.

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