The quarterly results of Gujarat Gas for the quarter ended December 2007 were better than expected as new supplies of natural gas came into play. The company’s consolidated net profits jumped 121% to Rs 39.24 crore, taking the full year profits to Rs 152.95 crore.
During the quarter, the company drew additional natural gas supply of 1.43 million standard cubic metres per day (MMSCMD) from Tapti gas field to take the total volume of gas sold to 3.65 MMSCMD. These gas volumes were nearly 7% higher as against the corresponding quarter of previous year and 26.5% higher from the September 2007 quarter. As the volumes in retail and CNG segments grow steadily over a period of time, the company sold a substantial quantity from the additional gas to industrial consumers on short-term bulk contracts. Coming back to the financial statements, Gujarat Gas reported 26% higher net sales at Rs 345.87 crore during the quarter ended December 2007 on a consolidated basis. Operating margins shot up substantially by 630 basis points to 18.5%, resulting in a 91% jump in operating profits. Profits before tax jumped 107% to Rs 58.94 crore. However, the future appears somewhat uncertain for the company with the government initiating steps to bring entire gas produced by Panna Mukta Tapti (PMT) fields to Gail for marketing from April 2008.
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