Gujarat State Petronet or GSPL clocked consolidated Profit after tax of Rs 434 crore in Q1FY24 compared to Rs 648 cr in Q1FY23. Q1FY24 gross income also came in lower at Rs 4,291 crore Vs Rs 5691 crore in Q1FY23.
The financial performance is lower than expected owing to lower realization led by price cuts taken by the company. The price cuts also impacted the gross margins for the company.
The company also undertook capex of Rs200-250 crore in Q1 and guided for further Rs 1000-1200 crore per annum for next three years to be funded through internal accruals. This is expected to strengthen the company’s fundamentals.
Sales volume is of course a bright spot and indicated growth sequentially. Gas sales volume grew 4% QoQ to 9.22 mmscmd driven by industrial volumes which increased 9.7% QoQ due to softer spot LNG prices. CNG volumes too grew 3.2% QoQ to 2.6 mmscmd. The company however, saw 28% QoQ decline in domestic PNG volumes while commercial PNG volumes declined 7.1% QoQ.
