Tuesday, 15 September 2015

Gujarat Gas: Gross margins to stabilise at Rs. 6/scm

Gujarat Gas, as part of the GSPC group, is expected to strike a balance between right volumes and margins.
8According to a report, with the help of domestic gas allocation to residential PNG, CNG customers and a decline in global LNG prices for industrial customers, Gujarat Gas has been able to increase its gross margins from Rs 4.3/scm in FY14 to Rs 6.1/scm in FY15.
8In future it is expected that the company will pass on most of the lower raw material costs to its customers to increase volume growth and stabilise margins at Rs. 6/scm.
8Moreover, better gas sourcing arrangements due to strong parentage -- from GSPC -- will enable Gujarat Gas to maintain steady margins over the next two years.
8Post amalgamation, Gujarat Gas has a net debt of Rs 2100 crore, which will steadily decline over the years due to strong cash flow generation from the core business.

For more details visit indianpetroplus.com

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