MOSL: GUJARAT STATE PETRONET (Downgrade to Neutral)-Hurt by multi-quarter-low volumes, higher expenditure
Gujarat State Petronet: Hurt by multi-quarter-low volumes, higher expenditure
(GUJS IN, Mkt Cap USD1.4b, CMP INR175, TP INR191, 9% Upside, Downgrade to Neutral)
Volumes declined 5% YoY (-6% QoQ) to 32.4mmscmd in 4QFY19. EBITDA came in muted at INR3.3b (+14% YoY, -7% QoQ) owing to higher total expenditure of INR359/mscm (v/s INR199/mscm in 4QFY18 and INR317/mscm in 3QFY19). PAT declined 3% YoY (-12% QoQ) to INR1.5b, led by a higher tax rate. For FY19, EBITDA stood at INR15.4b (v/s INR11.5b in FY18) and PAT at INR7.9b (v/s INR6.7b in FY18).
Transmission volumes lowest in six quarters
- Transmission volumes stood at 32.4mmscmd, as against 34.1mmscmd in 4QFY18 and 34.5mmscmd in 3QFY19.
- Implied transmission tariff came in at INR1,488/mscm, as against INR1,140/mscm in 4QFY18 and INR1,430/mscm in 3QFY19.
- For FY19, total transmission volumes stood at 34.6mmscmd (v/s 31.5mmscmd in FY18), with implied tariff at INR1,487/mscm (v/s INR1,157/mscm in FY18).
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.
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