Gujrat Gas shares down on weak Q1 results

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Gujrat Gas Ltd’s shares went down by 1 per cent after the company reported a 43 per cent decrease in profit for the quarter ended June 30, 2023, at Rs 215.95 crore, compared to Rs 381.90 crore in the corresponding quarter last year.

Revenues were down 26 per cent at Rs 3,923.70 crore, compared to Rs 5,303.23 crore last year. Sequentially, profits were lower by 41 per cent, compared to Rs 370.50 crore in the previous quarter.

According to a report by Centrum Broking, “GujGas is expected to invest Rs 10–12 bilion p.a. over the next  2-3  years to expand its infrastructure and add CNG stations. Investments would be equally divided across infrastructural expansion into legacy areas, new areas, and putting up CNG stations. During Q1, the company invested Rs 2.0–2.5 billion. In Q1, GujGas added more than 46,000 new domestic and commercial customers, and commissioned 36 new industrial customers.” 

The shares went down by 1 per cent to Rs 451 at 11.33 am on BSE.