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Gujarat Gas Annual Net Sales Grew by 31%

  • “The severe depreciation in the Indian rupee adversely impacted gas costs and margins temporarily in the fourth quarter,” said  Shaleen Sharma, MD, GGCLGujarat Gas’ (GGCL) consolidated net sales for the year 2011 increased by 31% over the previous year due to higher realisation and volume growth in the company’s high value market segments. This included the CNG (compressed natural gas) segment which grew by 14% in volume with over 32,000 vehicles converted to CNG during the year.
  • GGCL has a multiple source portfolio and has successfully procured significant volumes of RLNG (re-gasified liquefied natural gas) in its gas sourcing mix, which has necessitated a more dynamic pricing approach, including more frequent sales price corrections.While sales prices in the industrial segment were revised effective 1 September 2011, the sharp depreciation of the Indian rupee by over 15% against the dollar in subsequent months has impacted GGCL’s gas cost significantly. This had a temporary impact on margins and profits in the fourth quarter until selling prices to the industrial segment were increased again effective 1 January 2012.
  • Consolidated net sales for the year 2011 were Rs2,382 crore compared to Rs1,814 crore for the previous year. The total volume of gas sold during the year 2011 was 1,246 million metric standard cubic metres (mmscm) compared to 1,212 mmscm in the previous year. The consolidated net sales for the fourth quarter of Rs641.5 crore were higher by 27% over the net sales of the corresponding quarter in the previous year. The volume of gas sold during the fourth quarter was 314 mmscm, as compared to 309 mmscm in the corresponding quarter of the previous year.
  • The consolidated profit after tax (PAT) for the year 2011 was Rs274.8 crore compared to Rs259 crore for the previous year. The consolidated profit after tax for the fourth quarter was Rs25 crore compared to Rs82.5 crore for the corresponding quarter in the previous year.Speaking on the occasion of the results, Shaleen Sharma, MD, GGCL said, “The company’s sales margins and earnings were robust for the year 2011 and increased over the previous year. The severe depreciation in the Indian rupee adversely impacted gas costs and margins temporarily in the fourth quarter.”In late morning trade, Gujarat Gas Company was trading at Rs389 per share on the Bombay Stock Exchange, 0.03% up from the previous close.

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