By: ICN Bureau
Last updated : December 11, 2021 10:31 am
The company established a strong market position in the CGD industry in lndia
Gujarat Gas limited (GGL) is expected to incur an annual capex of around Rs. 1,000 crore over the medium term, to be largely funded through internal accruals for the seven new geographical areas won during the 9th and 10th CGD (City Gas Distribution) bidding round.
Contributed by the healthy annual accruals earned, the company is expected to become net debt free by next fiscal.
GGLs strong and established market position in the CGD industry in lndia is indicated by its industry-leading presence in 27 CGD licenses spread across 43 districts in 6 states and 1 union territory in the state of Gujarat, Maharashtra, Rajasthan, Haryana, Punjab and Madhya Pradesh, and Union Territory of Dadra & Nagar Haveli.
The company's user base comprised more than 15.7 lakh domestic households, over 13,100 commercial customers, 564 CNG stations, and close to 4,100 industrial units as on June 30, 2021 thus providing strong revenue diversity.
The recent favorable Supreme Court order also paves way for GGL to develop one more GA - Ahmedabad Rural, won in a bidding round in 2016, thereby increasing the potential of its business.
GGL is the largest CGD player in India, with strong and established market share. The company has depicted a healthy track record of being able to sustain its operating performance,despite volatility faced especially in movement of RLNG prices.
For the first quarter of fiscal 2022, GGL reported profit after tax (PAT) of Rs. 477 crore on revenues of Rs. 3,011 crore, against a PAT of Rs. 59 crore on revenue of Rs. 1,083 crore for the corresponding period of the previous fiscal.