GGCL net dips by 9% in Q1 at Rs 59 cr
Ahmedabad: Gujarat Gas Company Ltd (GGCL), the subsidiary of UK's BG group, has posted a 9 percent dip in profit at Rs 59.5 crore on consolidated basis in the first quarter this year.
The company, which follows calendar year as its fiscal, had posted net profit of Rs 65.4 crore in the January-March quarter last year.
The BG group last year had sold its majority stake in the company to Gujarat government owned GSPC, but transfer of stake is yet to be completed.
Net sales of the company rose by 7 percent at Rs 762.90 crore in Q1 of FY13 against Rs 714.30 crore in the same quarter last year.
There was a significant fall in indigenous gas supply during the quarter and the company addressed the shortfall with a higher proportion of RLNG (regasified LNG) which pushed up the average cost of gas, a company statement stated.
The company’s majority shareholder, BG Asia Pacific Holdings Pte Limited (BGAPH), had signed a sale and purchase agreement with Gujarat government run GSPC Distribution Networks Limited (GDNL), for sale of its entire shareholding in the company in October 2012.
The total volume of gas sold during the quarter by GGCL was 264 million metric standard cubic meter(mmscm) compared to 304 mmscm in the corresponding quarter of the previous year, the statement said.
"GGCL continues to connect new customers in different segments. The gas cost scenario has made it necessary to optimise volumes and prices very carefully to sustain value," GGCL Managing Director Sugata Sircar said.
The company connected over 10,800 new residential customers, converted about 6,000 vehicles to CNG and commissioned more than 44,000 standard cubic meter per day (scmd) of new volumes in the industrial sector during the quarter, a company statement stated.
"The company has filed tariffs post authorisation from the Petroleum & Natural Gas Regulatory Board (PNGRB) for its transmission pipeline and has received authorisation for its city gas distribution areas of Surat, Bharuch and Ankleshwar," Sircar said.
The company currently distributes about 2.9 million metric standard cubic meter per day (mmscmd) of natural gas to about 3,86,000 industrial, commercial and domestic customers through its pipeline network and CNG to over 1,98,000 vehicles through 55 retail outlets.