Any current/future capex/capital investment/strategic investment?

Gujarat Gas plans CAPEX of approximately Rs. 1,000 to 1,500 crores over the next 3 to 5 years. The CAPEX is split roughly 50:50 between developing new geographical areas (new GAs) and consolidating existing markets like Ahmedabad. For FY25, a CAPEX target of around Rs. 1,000 crores is reiterated, including investments in new and upgraded CNG stations. The company plans to add 22 new CNG stations and upgrade 60+ stations in FY25. A new "FDODO" (fully dealer-on-dealer operated) scheme will help accelerate CNG station rollout, with over 600 applications received and 200+ Letters of Intent

Future growth expectations in sales/revenue/volumes?

Overall volume growth guidance is around 5%-7% annually for the near term, especially outside Morbi industrial markets. Non-Morbi industrial volume growth is expected at 5%-7% over the first few quarters; new areas like Ahmedabad rural, Thane, Dadra Nagar Haveli, and Kutch West are focus areas for growth. CNG volumes have grown 19% YoY and are expected to continue growing aggressively with 14%-15% growth guidance; efforts include adding 22 new stations and upgrading 60+ stations in FY25. The FDODO scheme is anticipated to add about 1 mmscmd of CNG volume over 1 to 2 years. Morbi region

Future growth expectations in earnings/operating earnings/profits/EPS?

Gujarat Gas Limited expects volume growth of 5% to 7% overall, with CNG volume growth targeted around 14% annually, supported by aggressive infrastructure expansion like the FDODO scheme and addition/upgradation of over 80 CNG stations this year. Non-Morbi industrial volume growth is expected to align with overall guidance of 5%-7%, with specific focus on new markets like Ahmedabad rural, Thane, and Dadra Nagar Haveli for higher growth. Margin guidance remains steady at ₹4.5 to ₹5.5 per SCM EBITDA, reflecting a balanced mix of industrial, CNG, PNG, and commercial segments. CAPEX guidance

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Gujarat Gas LtdQ2 FY24Gas

Gujarat Gas Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹353P/E: 21.9Market Cap: ₹25.5K CrSector: Gas

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Overall volume growth guidance is around 5%-7% annually for the near term, especially outside Morbi industrial markets.
→Non-Morbi industrial volume growth is expected at 5%-7% over the first few quarters; new areas like Ahmedabad rural, Thane, Dadra Nagar Haveli, and Kutch West are focus areas for growth.
→CNG volumes have grown 19% YoY and are expected to continue growing aggressively with 14%-15% growth guidance; efforts include adding 22 new stations and upgrading 60+ stations in FY25.
→The FDODO scheme is anticipated to add about 1 mmscmd of CNG volume over 1 to 2 years.
→Morbi region has a potential of close to 8 mmscmd volume if gas price remains competitive versus propane.
→Management targets balanced price-volume growth to maintain EBITDA margin guidance of 4.5-5.5 Rs/SCM.
→CAPEX guidance is approximately Rs. 1000-1500 crore in the next 3 years to support growth and network expansion.

Margin guidance

Category 3

→Gujarat Gas Limited expects volume growth of 5% to 7% overall, with CNG volume growth targeted around 14% annually, supported by aggressive infrastructure expansion like the FDODO scheme and addition/upgradation of over 80 CNG stations this year.
→Non-Morbi industrial volume growth is expected to align with overall guidance of 5%-7%, with specific focus on new markets like Ahmedabad rural, Thane, and Dadra Nagar Haveli for higher growth.
→Margin guidance remains steady at ₹4.5 to ₹5.5 per SCM EBITDA, reflecting a balanced mix of industrial, CNG, PNG, and commercial segments.
→CAPEX guidance is approximately ₹1,000 crores for FY24-25, with roughly 50% allocated to new geographic areas and the rest for consolidating existing markets like Ahmedabad.
→Profit after tax rose 53% YoY in Q1 FY25; management expects growth to continue with expanding volumes and pricing stability, despite temporary volume dips (e.g., Morbi).
→Long-term contracts and spot price strategies are being managed carefully to optimize margins and sustain profitability.

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Fundraise plans

The transcript from the Gujarat Gas Limited Q1 FY25 earnings call does not explicitly mention any current or planned fundraising activities through debt or equity. Key points related to capital allocation and funding are: - CAPEX guidance for FY24-25 is about Rs. 1,000 crores, split approximately 50:50 between new area development and consolidation in existing regions. - The company plans to expand CNG infrastructure aggressively, including launching the FDODO scheme with over 600 applications and issuing Letters of Intent soon. - There is no direct mention of raising funds via debt or equity in the discussion. - The company appears focused on internal cash flow and partnerships (e.g., dealer-operated CNG stations) to support growth. - Discussions on gas sourcing, contracts, and pricing strategies focus on operational and market aspects rather than financing. In summary, no clear indication of new debt or equity fundraising is provided in the transcript.

Order book

The transcript from the provided pages does not explicitly mention details about the current or expected order book or pending orders for Gujarat Gas Limited. However, relevant information related to volume additions, network expansions, and contracts includes: - Planning to add around 22 new CNG stations and upgrade 62 existing stations in the current financial year. - Introduced FDODO scheme (fully dealer-operated), with over 600 applications received and about 200 Letters of Intent (LoIs) expected to be issued initially. - Signed a volume of 0.63 mmscmd to be commissioned within six months (not part of the EoI offered cheaper PNG industrial formula). - More than 150 responses received to the Expression of Interest (EoI) for PNG industrial volume contracts. - Aggressively expanding CNG infrastructure near developed markets to support volume growth. No direct figures on the order book or pending orders are provided.

Capex plans

Yes

→Gujarat Gas plans CAPEX of approximately Rs. 1,000 to 1,500 crores over the next 3 to 5 years.
→The CAPEX is split roughly 50:50 between developing new geographical areas (new GAs) and consolidating existing markets like Ahmedabad.
→For FY25, a CAPEX target of around Rs. 1,000 crores is reiterated, including investments in new and upgraded CNG stations.
→The company plans to add 22 new CNG stations and upgrade 60+ stations in FY25.
→A new "FDODO" (fully dealer-on-dealer operated) scheme will help accelerate CNG station rollout, with over 600 applications received and 200+ Letters of Intent expected.
→FDODO scheme shifts CAPEX and project management responsibilities to business partners/dealers, boosting infrastructure expansion speed.
→Strategic focus includes expanding in Gujarat as well as nearby developed CNG markets outside the state.

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