MOSL: GUJARAT STATE PETRONET (Buy)-Transmission volume growth continues
GUJARAT STATE PETRONET: Transmission volume growth continues
(GUJS IN, Mkt Cap USD1.7b, CMP INR213, TP INR256, 20% Upside, Buy)
Standalone net sales were 6% higher than our est. at INR5.4b (-10% YoY), led primarily by higher than expected transmission volume and marginal improvement in implied tariff. Revenue in 2QFY19 included one-time retrospective adjustment in tariff; resulting in gas transportation in the quarter declining 10% YoY at INR5.3b.
EBITDA was down 15% YoY at INR4.4b and PBT down 15% YoY (+16% est. led by lower interest cost) at INR3.9b. The company re-measured its DTL of INR12.8b, in line with adoption of the new lower tax rate. PAT was up 41% YoY to INR4.5b.
For 1HFY20, EBITDA was down 2% YoY at INR8.4b, while PBT was flat YoY at INR7.0b. With re-measurement of DTL during 2QFY20, resulting PAT was 41% higher YoY to INR6.6b.
Transmission volume for the quarter was 12% higher YoY at 39.2mmscmd (up 8% to 38.7mmscmd for 1HFY20).
Implied tariff has improved marginally QoQ to INR1,461/scm; however, the same has declined as against INR1,810/scm (includes one-time retrospective adjustment) in 2QFY19 (also down 2% YoY to INR1,440/scm in 1HFY20).
Gujarat State Petronet Limited (GSPL) is a natural gas infrastructure and transmission company engaged in gas transportation business. The Company is engaged in transmission of natural gas through pipelines on an open access basis from supply points to demand centers. It also generates electricity through windmills. Its segments include Gas Transportation and Windmill. It develops energy transportation infrastructure and connects natural gas supply sources, including liquefied natural gas (LNG) terminals to various markets. It has set up a 52.5 megawatt (MW) Wind Power Project at Maliya Miyana (District-Rajkot), Gorsar, and Adodar (District-Porbandar). Its subsidiaries include GSPL India Gasnet Limited, which is engaged in development of Mehsana-Bhatinda and Bhatinda-Jammu-Srinagar pipeline projects, and GSPL India Transco Limited, which is engaged in the development of Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline Project. It serves various industries, such as power and fertilizer.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.