Street View- Margin concerns eclipse volume rise at India's Gujarat Energy
BUZZ-Street View- Margin concerns eclipse volume rise at India's Gujarat Energy ** Shares of India's Gujarat Energy GGAS.NS fall 1.4% to 395.55 rupees
** Co reported ~11x y/y rise in Q4 profit to 3.51 billion rupees ($36.99 million), driven by strong city gas distribution volumes
VOLUME BEAT OVERSHADOWED BY MARGIN PRESSURE
** Nomura ("Buy", TP: 390 rupees) says strong city gas volumes drove an earnings beat, but softer gas-trading profits and uncertainty around future margin trends remain key monitorables
** Axis Capital ("Add", TP: 440 rupees) says the Mideast crisis pressured margins and expects LNG costs to remain a key variable for earnings
** CLSA ("Hold", TP: 375 rupees) says industrial gas volumes benefited from a recovery in Morbi, but overall volumes still declined on-year, and the sustainability of the recovery remains key
** Motilal Oswal ("Buy") says city gas distribution volumes beat estimates, but EBITDA fell 18% sequentially and margins contracted as higher gas costs weighed on profitability
($1 = 94.8800 Indian rupees)
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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