Gujarat Gas shares fall 3% as company announced its third-quarter fiscal year 2025 results, revealing a mixed performance. Net profit remained essentially unchanged at ₹221 crore compared to the same period last year. The company’s revenue, however, saw a 5.7% year-on-year increase, reaching ₹4,152.9 crore, up from ₹3,939 crore in Q3 FY24.
As of 9:51 am the shares were trading 2.62% lower at ₹465.65 on NSE.
Despite the revenue growth, Gujarat Gas faced pressure on its profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined by 5.1% to ₹380.4 crore. This decline is attributed to higher costs, which squeezed the company’s margins. Margins contracted to 9.2% in Q3 FY25 from 10.2% in the corresponding quarter of the previous fiscal year.
On a more positive note, Gujarat Gas achieved a significant milestone in its CNG (Compressed Natural Gas) business. The company reported its highest-ever CNG volume in a single quarter, reaching 3.12 million metric standard cubic meters per day (mmscmd). This represents a substantial 12% year-on-year increase, indicating strong demand for CNG. Total sales volumes also saw an uptick, rising to 9.47 mmscmd from 9.16 mmscmd in Q3 FY24.
Looking at the specifics of sales volumes, industrial sales of natural gas stood at 5.46 mmscmd, slightly lower than the 5.53 mmscmd recorded in the same period last year. However, the company witnessed growth in its domestic Piped Natural Gas (PNG) segment, with volumes increasing to 0.74 mmscmd from 0.71 mmscmd. Commercial PNG sales also contributed, reaching 0.15 mmscmd.
During the third quarter, Gujarat Gas expanded its customer base by adding over 38,200 new domestic customers. The company also continued its infrastructure development by commissioning five new CNG stations. Furthermore, Gujarat Gas reported an increase in industrial volumes by 172,000 standard cubic meters per day (scmd). The company is actively promoting its Franchisee Owned Distributor Operated (FDODO) model to accelerate its future growth and expand its reach. While the detailed financials show a flat net profit, the company’s growth in CNG and overall sales volumes, coupled with its expansion efforts, suggest a focus on long-term growth.