Analyst Meet / AGM - Analyst Meet-->Gujarat Gas

Analyst Meet / AGM - Analyst Meet

Gujarat Gas

(10-Sep-2013  , 11:24 Hours IST)

The company held its Analyst meet on 6th Sep'13 and was addressed by Mr. Sugata Sircar Managing Director Key highlights Gujarat Gas currently distributes about 2.8 mmscmd of gas to about 4 lakh industrial, commercial and domestic customers through its pipeline network and CNG to over 2 lakh vehicles through 56 retail outlets. About 50% of gas is sourced domestically, PMT source being the major contributor and rests are imports in form of RLNG. Most of the domestic source of gas is being sourced at fixed price of gas of about US $ 6 and this will remain till 2019. Any revision of KG gas on April'14 will also not affect the company. Currently, from PMT source, the company receives about 1.3-mmscmd gas. The volume is expected to be lower by 10% by the end of CY'13. BY 2019, the volume from PMT will be zero, this is what has been contracted and the PMT stream is also depleting. Company averages out the price of gas i.e. domestic and the landed costs of PMT and thereby charges to all its customers a weighted average price of gas. The gas price due to increase in contribution from RLNG and Re depreciation, was increased by 4 times in CY'12 and also price revision was done in Q1 and Q1 CY'13 as well. In Q2 CY'13, due to sudden fall in RLNG prices on y.o.y basis, the margins got a spurt. Almost all the RLNG requirements, is sourced by the company on spot basis. Of the total sales of gas volume, about 75% goes to industrial customers, 15% to CNG and rest are domestic, commercial and PNG customers. Within the industrial customers, about 50% belong to agro/chemicals/Pharma industry, 20% are from textile clothing industry, 12% from glass and ceramics, 11% from yarn and 6% from engineering and other industry. Since the landed costs of RLNG overall is increasing, the weighted average costs of the gas at which the company sells, also increased. While this generally is not affecting the liquid fuel replacement (LFR) market, which constitutes nearly 60% of total industrial customers of the company, the others have cheaper source of grid power available to them. As per the management, the share of these LFR market will increase within the overall industrial customers. Also as per the management, the worst in terms of lower off take of volumes from customers is behind them and after few quarters of consolidation and may be slight dip, volumes will come back. Also the slowdown in economy and uncertainties related to it, affect the industrial customers output and thus the usage of volume of gas. If the economy recovers, the gas will be utilized irrespective of the price, given the uncertainty related to other source of power. Going forward, in terms of gas availability, for few quarters, RLNG is the only source. Company also has signed an MOU with GSPC for gas, but more clarity will emerge only in Mar'14 after that. Also EGOM will determine the final status of GSPC gas. On regulatory aspect, company's 8979 sq km of Surat-Bharuch-Ankleshwar pipeline has already received approval and exclusivity till Nov'15 from PNGRB and thereafter fresh tariff proposal will be required to be submitted. 73 km of Hazira-Ankleshwar pipeline also received the transmission rights approval from PNGRB however; tariff approval is yet to be received. The company already has applied for Bhavnagar pipeline distribution rights, and is yet to receive the approval from PNGRB. In CY'12, the company did a capex of Rs 195 crore and for CY'13; capex target stands at Rs 160 crore.

Market Commentary - Futures Market

Market Commentary - Futures Market

Nifty October 2013 futures at premium

(10-Oct-2013  , 16:14 Hours IST)

Nifty October 2013 futures were at 6070.50, at a premium of 49.55 points over spot closing of 6020.95. Turnover on NSE's futures & options (F&O) segment declined to Rs 106485.35 crore from Rs 116530.33 crore on Wednesday, 9 October 2013. Infosys October 2013 futures were at 3151, near spot closing of 3153. Tata Motors October 2013 futures were at 375.50, near spot closing of 373.85. Reliance Communications (RCom) October 2013 futures were at 152.20, near spot closing of 151.20. In the spot market, the CNX Nifty rose 13.50 points or 0.22% to settle at 6,020.95, its highest closing level since 19 September 2013. The October 2013 derivatives contracts expire on 31 October 2013.

Economy - Reports

Economy - Reports

Foreign Exchange Earnings from Tourism Increases by 12.8 Per Cent in September 2013

(10-Oct-2013  , 09:36 Hours IST)

Foreign Exchange Earnings (FEEs) from tourism in Rupees terms in September, 2013 increased by 12.8% to Rs.7502 crore as compared to Rs.6652 crore in September, 2012. Foreign Tourist Arrivals (FTAs) in September, 2013 was 4.36 lakh as against 4.12 lakh in September 2012 showing a growth of 5.8%.
The following are some of the important highlights regarding FTAs and FEEs from tourism during the month of September, 2013:
Foreign Exchange Earnings (FEEs) from Tourism in rupee terms and US$ terms
·FEEs during the month of September 2013 were Rs 7,502 crore as compared to Rs 6,652 crore in September 2012 and Rs 5,748 crore in September 2011.
·The growth rate in FEEs in rupee terms in September 2013 over September 2012 was 12.8% as compared to 15.7% in September 2012 over September 2011.
·FEEs from tourism in rupee terms during January to September 2013 were Rs 75,214 crore with a growth of 13.9%, as compared to the FEEs of Rs 66,061 crore with a growth of 22.9% during January to September 2012 over the corresponding period of 2011.
·FEEs in US$ terms during the month of September 2013 were US$1.175 billion as compared to FEEs of US$1.219 billion during the month of September 2012 and US$ 1.208 billion in September 2011.
The growth rate in FEEs in US$ terms in September 2013 over September 2012 was negative growth of 3.6% as compared to the growth of 0.9% in September 2012 over September 2011.
FEE from tourism in terms of US$ during January to September 2013 were US$13.200 billion with a growth of 5.7%, as compared to US$ 12.492 billion with a growth of 5.1% during January-September 2012 over the corresponding period of 2011.
Foreign Tourist Arrivals (FTAs):
·FTAs during the Month of September 2013 were 4.36 lakh as compared to FTAs of 4.12 lakh during the month of September 2012 and 4.17 lakh in September 2011.
·There has been a growth of 5.8% in September 2013 over September 2012 as compared to a negative growth of 1.4% registered in September 2012 over September 2011.
·FTAs during the period January to September 2013 were 47.41 lakh with a growth of 3.8%, as compared to FTAs of 45.67 lakh with a growth of 5.2% during January to September 2012 over the corresponding period of 2011.
                                                 
The Total Energy Generation during the period April 2013-September 2013 has been 481.85 Billion Units

Economy - Reports

The Total Energy Generation during the period April 2013-September 2013 has been 481.85 Billion Units

(10-Oct-2013  , 15:40 Hours IST)

The Total Energy Generation during the period April 2013-September 2013 has been 481.85 Billion Units which was 105.73% of the actual generation during the same period last year. The generation during April 2012- September 2012 as compared to the corresponding period of the previous year was 104.75%.During the period April 2013-September 2013, hydro generation has been 110.45%, nuclear generation has been 96.50% and thermal generation has been 98.13% over the same period last year. IFC Launches $1 Billion Bond Program to Strengthen India's Capital Markets, Attract Foreign Investment (10-Oct-2013  , 14:02 Hours IST) International Finance Corporation (IFC), a member of the World Bank Group, has launched a $1 billion offshore bond program—the largest of its kind in the offshore rupee market—to strengthen India's capital markets and attract greater foreign investment in a time of renewed economic uncertainty across the world. Under the program, IFC will issue rupee-linked bonds and use the proceeds to finance private sector investment in the country. “Vibrant domestic capital markets ensure access to long-term, local-currency finance for the private sector—the key engine of job creation in emerging markets,” said Jin-Yong Cai, IFC's CEO. “IFC's offshore bond program will help bring depth and diversity to the offshore rupee market and pave the way for an alternative source of funding for Indian companies.” India accounted for $4.5 billion of IFC's committed investment portfolio as of June 30, 2013—more than any other country. In FY13, IFC invested $1.38 billion in India to achieve several strategic priorities such as promoting inclusive growth in India's low-income states, addressing climate change, and supporting global economic integration. Arvind Mayaram, Secretary of Economic Affairs in India's Ministry of Finance, said: “We see IFC as an important development partner. It has been contributing significantly in financing private sector projects, including public-private partnerships, in several key developmental areas. With the launch of a rupee bond in the global markets, IFC is turning a new corner. This is a new initiative for the intermediation of international savings for development in India. It will also help deepen the capital markets in India and establish an Indian rupee benchmark in the global markets

 

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