Sanjeev Kumar, MD of Gujarat Gas, on Monday said that Q3 volumes were at record levels across all segments.
“Volumes for Q3FY21 stands at record high of 11.44 mmscmd which is 16 percent sequentially high and 23 percent high on year-on-year (YoY) basis. This has been achieved primarily because we have seen volume increase across all categories – industrial, CNG, and residential,” he said in an interview to CNBC-TV18.
He also said that volumes in the CNG segment recovered quite sharply. It is up 20 percent quarter-on-quarter (QoQ) and 2 percent YoY.
“In the CNG segment, the volumes have recovered quite sharply and is up 20 percent QoQ basis and 2 percent YoY basis. This is mainly due to aggressive expansion which we have taken by adding a record of 91 CNG stations during the first 9 months of the current financial year. During the current year, we are planning to add a total of 160 new CNG stations in new geographical areas. We expect good volumes to start flowing from the new geographical areas,” he said.
Kumar said that the industrial segment saw growth from ceramic and tiles sectors. He is expecting a growth of around 25-30 percent in the ceramic industry in the next few quarters. Hence he expects the volumes to remain robust at CAGR of 10 percent for the next 4-5 years.
He expects margins to be moderate in Q4. He said that EBITDA/scm should be around 4.5-5.5 on an annual basis.
On debt, he said that they have been able to reduce debt by 54 percent in this year to Rs 929 crore.
On spot LNG prices, he said that prices have more than doubled due to shortage of LNG cargos and winter. He also said that they have raised prices for industrial customers due to the higher prices.
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