| – | Selling price saw a pressure. 84% can be attributed to reduction in selling price and 16% on account of reduction in sales. |
|---|---|
| – | During the quarter, the company reduced industrial selling price to compete with lower alternate fuel mainly propane in the Morbi area which has impacted the profit. |
| – | The company successfully completed a pilot project on hydrogen blending with NTPC. It is planning to increase the hydrogen bending further. |
| – | CNG and domestic PNG now contributes ~35% of the total sales volume (v/s 31% in Q1 FY23) supported by growth in CNG volume. |
| – | With the softening of spot prices and availability of cheaper domestic sources of gas, the company adjusted its selling prices to retain and regain customers at Morbi and other industrial customers. |
| – | The board approved investment of ₹100 crore in GLL). The company is at Mundra in Gujarat having a capacity of 5 It currently sources ~4-4.5 mmscmd of imported R-LNG. After this investment, Gujarat Gas holds of It provides better synergy and integration in the gas value chain. |
| – | Going forward, the company continues to balance between volumes and margin. |
| – | The company plans to incur capital expenditure of ~₹1,000-₹1,200 crore every year for the next 3 years. This would be mainly in new geographical areas, existing geographical areas and CNG infrastructure. The capital expenditure would be funded through internal accruals. |
| – | The CNG sales volumes are expected to grow supported by addition of CNG stations and higher competitiveness to alternate fuels. |
| – | The company would add ~60-70 new CNG stations in FY24. Most of the addition would be in the Ahmedabad rural areas. |
| – | The reduction in APM price coupled with the lower VAT is expected to give strong growth momentum to conversions both in domestic and CNG sector. |
| – | The company anticipates maintaining its EBITDA/scm at ~₹4.5-₹5.5/scm, going ahead. |
| – | It is planning to expand in newly acquired areas in Thane rural areas, Ahmedabad rural areas and some areas in Rajasthan for industrial volumes. |
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