Gujarat Gas Limited — Q2 FY26

Gujarat Gas Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=GThh6wqH-mw Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Gujarat Gas Limited Q2 FI26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:18 18 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:27 27 seconds this conference is being recorded. I now hand the conference over to the company secretary of Gujarat gas, Mr. Sepid Dav. 0:35 35 seconds Thank you and over to you Mr. Dav. 0:39 39 seconds Thank you. Good day everyone. A very warm welcome to Q2 earning call of Gujarat Gas Limited. I'm Sep Dway 0:46 46 seconds company secretary and head of corporate communication at Gujarat Gas. Let us give you an update since our last earning call on the composite scheme of 0:54 54 seconds arrangement. The board of directors on have approved the scheme of arrangement on 30th August. Thereafter we have 1:01 1 minute, 1 second approached ministry of corporate affairs and the ministry has directed convening of meeting of shareholders of GSPC, GSPL and Gujarat. Uh we are happy to inform 1:10 1 minute, 10 seconds that the shareholders of GSPC, GSK and Gujarat have approved the scheme with pumping majority. 100% of GSPC 1:18 1 minute, 18 seconds shareholders and 99.99% of GGL and GSP shareholders have voted in favor of the scheme. After approval of the 1:25 1 minute, 25 seconds shareholders, we have filed the chairman's report and confirmation petition with MCA. The proposed scheme will eliminate layer structure of GSPC 1:33 1 minute, 33 seconds group to promote business synergy and unlock value for its stakeholders. The scheme is subject to various statutory and regulatory approvals. We have 1:42 1 minute, 42 seconds received no objection from BSC, NSC and PMGB. 1:46 1 minute, 46 seconds The matter is under active consultation of MCA and we are expecting approval of the scheme by December 2025. 1:54 1 minute, 54 seconds Coming back to GGL to give a brief background about GGL. GGL is the largest city is largest city company in India. 2:01 2 minutes, 1 second We operating in 27 geographical areas spread across six groups and one unique territory. We have a good mix of mature and emerging CGD areas. We have 2:10 2 minutes, 10 seconds developed a pipeline network of more than 43,900 kilometers which provide natural gas to approximately 23.44 44 2:17 2 minutes, 17 seconds lakh households, 4,429 mil customers and 15,780 commercial customers. We also operate 2:26 2 minutes, 26 seconds 834 CNG stations serving approximately four electric vehicles per day. We are aggressively setting up CN infrastructure as well as upgrading CN 2:35 2 minutes, 35 seconds infrastructure to promote use of clean and green fuel. We also started injecting bio gas into DGL circus. 2:43 2 minutes, 43 seconds DGL aims to deliver affordable, viable and cleaner energy by operating responsibly and performing with excellence by considering environment, 2:51 2 minutes, 51 seconds social and governance factors. As part of our commitment to ESD initiatives, we have taken various measures which include hydrogen planning pilot project 3:00 3 minutes which we have completed with 8% planning. We embarked on major digitization drive across various business operation and processes. Our 3:08 3 minutes, 8 seconds major contribution to the environment is by virtue of promoting use of gas for industry customers. In Q2, we have 3:15 3 minutes, 15 seconds reduced burning of approximately 10,385 metric t of fuel per day. Further to our CNG sales on various outlet, we have 3:24 3 minutes, 24 seconds reduced combustation of approximately 3,282 kilome of petrol per day. 3:31 3 minutes, 31 seconds We have been conferred awards by our regulator PNGB in two categories. PMGB excellence award 2025 in the category of 3:39 3 minutes, 39 seconds safety integrity and technical excellence in CGD for Ahmedabad GS. PMGB excellence award 2025 in the category of 3:47 3 minutes, 47 seconds overall best performance in the CGD forg. 3:52 3 minutes, 52 seconds We are the two highest standards of safety and a strong culture of safety. 3:57 3 minutes, 57 seconds GGL is an IS certified organization for integrated quality occupational health safety and environment management 4:04 4 minutes, 4 seconds system. We build, operate and maintain a safe and reliable gas network in our areas of operation. With this brief background on GGL, I now request Mr. 4:14 4 minutes, 14 seconds Diaan to share business updates. Over to you. 4:18 4 minutes, 18 seconds Thank you Sunday. Good afternoon everyone. First, I'll update on the domestic and commercial segment. We are 4:25 4 minutes, 25 seconds seeing a positive growth in the domestic segment. GGL's customer base is now more than 23.28 4:33 4 minutes, 33 seconds lakh domestic customers. GGL has added 27 lakh commission customer in Q2 FY26 4:41 4 minutes, 41 seconds and registered on 34 lakh customers in Q2 FY26 despite of monsoon season. 4:50 4 minutes, 50 seconds EGL has signed a G sales agreement with Batinda Military Station which is one of the largest military base in India for 4:58 4 minutes, 58 seconds the supply of PNG to over 11,300 residential quarters. 5:05 5 minutes, 5 seconds The commercial segment is showing a steady growth in connection numbers. We expect the numbers in the domestic and 5:12 5 minutes, 12 seconds commercial segment to increase over a period of time as the new areas mature. 5:19 5 minutes, 19 seconds GGL at present has a customer base of 15,700 plus commission commercial customers. 5:27 5 minutes, 27 seconds Now let me update on the industrial segment. In the industrial segment, sales volume were 4.34 MSPMP for the quarter ended rupees suppliers 2021. 5:40 5 minutes, 40 seconds Whereas the sales volume during the previous quarter was 4.71 mm and overall decrease of approximately 8%. 5:50 5 minutes, 50 seconds The average morby volume during the quarter was 2.13 mm and non morby volume 5:57 5 minutes, 57 seconds was 2.22 to 2 mm the morby volume reduced from 2.51 mm in 6:06 6 minutes, 6 seconds Q1 FY26 to 2.13 mm PND in Q2 FY26 6:13 6 minutes, 13 seconds as stated during the last call the mori volumes were expected to be lower due to the JMA swimming festival 6:22 6 minutes, 22 seconds the known morphi volume of 2.22 22 mm cmd for quarter ended 30th September 6:29 6 minutes, 29 seconds 2025 has grown from 2.20 mm cmd during the previous quarter that is an increase of approximately 1%. 6:40 6 minutes, 40 seconds The known mor volume has grown by approximately 8% as compared to the same period which was 2.05 mm 6:50 6 minutes, 50 seconds in the previous financial year. In fact, the known morbidly volume has grown from 6:56 6 minutes, 56 seconds 1.92 mm CMD during FY2324 to 2.21 MMS CMD in FY 2526 that is a growth of almost 15%. 7:09 7 minutes, 9 seconds The reduction in sport RLNG prices and pool prices during the quarter enabled GGL to reduce the prices in industrial 7:17 7 minutes, 17 seconds segment which was by rupees 3.25 25 per SCN with effective form August 1 to 025. 7:28 7 minutes, 28 seconds The reduction also enabled GGS to maintain the price differential to propane that is natural gas premium by 7:37 7 minutes, 37 seconds rupees 4 to 5 per he. While the prices of alternate fuel propane has reduced in 7:44 7 minutes, 44 seconds recent times, we expect the same to increase during the winter month. This may reduce the gap between natural gas 7:52 7 minutes, 52 seconds and propane prices. However, in the short term, the mor volume are expected to remain lower. 8:00 8 minutes We continue to monitor the various aspects affecting the volumes that is price movement of sport RLNG and 8:09 8 minutes, 9 seconds alternate fuel and consumer goods demand across all our operating areas and shell adjust to such market dynamics so as to 8:19 8 minutes, 19 seconds maintain balance between margins and volumes. 8:23 8 minutes, 23 seconds Finally, let me update on CNG site. GGL reported a strong performance in Q2 FI26 8:31 8 minutes, 31 seconds driven by robust growth in CG volume and expanding infrastructure. 8:36 8 minutes, 36 seconds Change of sales rose by 13% year-over-year with Gujarat recording a 11% increase and areas outside Gujarat 8:45 8 minutes, 45 seconds delivering a notable 26% growth underscoring GGL's success in deepening its presence across all geographies. 8:55 8 minutes, 55 seconds As of September 2025, the CNG vehicle base across GGL's network reach 9:01 9 minutes, 1 second approximately 16.22 22 lakh compared to 14.12 lakh a year earlier reflecting a 9:10 9 minutes, 10 seconds solid 15% growth. PA continues to offer compelling economic advantage being 9:16 9 minutes, 16 seconds approximately 45% cheaper than petrol and 23% cheaper than diesel further 9:24 9 minutes, 24 seconds reinforcing its attractiveness amid volatile fuel prices. 9:29 9 minutes, 29 seconds During the quarter, DGS commercialized four new PNG stations, supporting its commitment to expanding reach and improving accessibility. 9:39 9 minutes, 39 seconds PNG CS volume touched a record high of 3.934 mm BMBB, highlighting sustained demand momentum. 9:48 9 minutes, 48 seconds Looking ahead, DGL is well positioned to capitalize on the increasing shift towards clean energy. With ongoing 9:57 9 minutes, 57 seconds infrastructure development, a growing CND vehicle base and strong customer adoption, the company remains confident 10:04 10 minutes, 4 seconds in maintaining its growth trajectory and strengthening its leadership in the CNC. 10:10 10 minutes, 10 seconds Finally, I'm happy to update that during Q2 of FY2526, we mark significant milestone, our 10:20 10 minutes, 20 seconds company's digital transformation journey with a soft focus on innovation and operational excellence as we go for 10:28 10 minutes, 28 seconds merger. We have planned to strategically expand our ERP ecosystem to incorporate 10:35 10 minutes, 35 seconds additional key business functions and achieve the benefit of seamless integration across vertical. Along with 10:42 10 minutes, 42 seconds this, the planned technology transformation of ERP will help to leverage advancement in AI powered 10:51 10 minutes, 51 seconds analytics and enhanced decision making and risk manager management capability. 10:57 10 minutes, 57 seconds On the operations front, we have drawn a blueprint for implementing a robust and secure SCAR system to enable centralized 11:06 11 minutes, 6 seconds monitoring and control across all geographies. This scalable agile infrastructure is designed to support 11:13 11 minutes, 13 seconds our evolving business dynamic and ensure responsiveness in a rapidly shifting global environment. 11:21 11 minutes, 21 seconds Furthermore, we have identified automation opportunities across multiple business processes that currently fall outside the scope of our ERP system. 11:32 11 minutes, 32 seconds These initiatives are designed to strategically address operational challenges and enhance overall process 11:40 11 minutes, 40 seconds efficiency through seamless integration and robust monitoring mechanism. 11:47 11 minutes, 47 seconds Thank you very much from my side. I would like to request our CFO Mr. Rajes Sudasan to take Rajes. 11:55 11 minutes, 55 seconds Thanks. Good evening ladies and gentlemen. Myself is Rajesh Shudasan, CFO and head of investor relations at Gujarat gas. On behalf of the entire 12:03 12 minutes, 3 seconds team of Gujarat guys, I extend a warm wishes for the for the shareholders and our customers. I welcome you to the earnings call for the second quarter and 12:12 12 minutes, 12 seconds the first half of the financial year 256. 12:15 12 minutes, 15 seconds Thank you for joining us today. I trust you had gone you had gone through our financial results of the quarter ended 30th September along with the press 12:23 12 minutes, 23 seconds release and the investor presentations which are available on our website and the stock exchange. During the quarter the company has added close to 42,400 12:32 12 minutes, 32 seconds new domestic PNG connections. Our pipeline infrastructure now now spans approximately 43,900 12:39 12 minutes, 39 seconds kilometers of PE and steel networks which is which continues to the to be the key driver for our growth. In the first half of the financial year, we 12:48 12 minutes, 48 seconds have invested approximately 282 crores in the gas infrastructure. For the full financial year, we plan to incur a capital expenditure of approximately 800 crores. 12:59 12 minutes, 59 seconds The revenue from the operations stood at close to sorry uh stood at 3,979 crores compared to 3,949 crores in the 13:08 13 minutes, 8 seconds corresponding quarter of the previous year. The IITA was 520 crores against 553 crores in Q2 of the previous year. 13:15 13 minutes, 15 seconds The profit after tax amounted to 281 crores compared to 307 crores in the same period of the last year. The term 13:23 13 minutes, 23 seconds margin per SEM was 6.54 versus 6.86 86 in the corresponding quarter of the previous year for the financial year 25 13:32 13 minutes, 32 seconds 26 we estimate an IITA margin in the range of 4.5 to 5.5 for SCMs 13:41 13 minutes, 41 seconds during the second quarter we received 100% allocation for the domestic segment however there was a 64% shortfall in the 13:49 13 minutes, 49 seconds CNG segment resulting in an overall shortfall of 51%age in the priority segment the APM shortfall was mitigated 13:57 13 minutes, 57 seconds through allocations from the new well gas and HB gas and sourcing and we also sourced gas from the spot and long-term 14:04 14 minutes, 4 seconds volume uh and the long-term long-term contracts the allocation of the new well gas for the Q2 for the uh for the financial year 2526 was approximately 14:13 14 minutes, 13 seconds 0.44 44 mm cmd down from 0.54 mm the Q1 gas continues to maintain a strong 14:21 14 minutes, 21 seconds credit profile with a trip AAA rating from prisil care and India rating as requested by our investors we have 14:28 14 minutes, 28 seconds uploaded the financials of GSPC for the Q1 in our GSPC website you can go through the same now with this we open 14:37 14 minutes, 37 seconds the floor for a Q&A session thank you very much we will Now begin the question and answer session. Anyone 14:46 14 minutes, 46 seconds who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 14:54 14 minutes, 54 seconds may press star and two. Participants are requested to use handsets while asking a question. 15:04 15 minutes, 4 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 15:13 15 minutes, 13 seconds The first question is from the line of Kalen from ICICI securities. Please go ahead. 15:21 15 minutes, 21 seconds Thank you for the opportunity. Good afternoon sir. The first question was more a small clarification. I uh what was the propane to gas differential that 15:30 15 minutes, 30 seconds was mentioned? I could not catch the number exactly in terms of rupees per HCM in Q2 and currently if you can give 15:37 15 minutes, 37 seconds both the numbers it's it's it's in the range of rupees 4 to rupees 6 per FM. 15:49 15 minutes, 49 seconds Uh that is in terms of propane being at a discount to gas. Is that correct sir? 15:59 15 minutes, 59 seconds Hello. Yeah, please. 16:02 16 minutes, 2 seconds Yeah, I was saying that is the discount that propane has against gas at this point of time. Right. Yes. 16:09 16 minutes, 9 seconds So, sir, that being the case, you already did mention that Mori is going to remain muted in the near term. But uh 16:16 16 minutes, 16 seconds can there be at least some marginal improvement after the festival season in Q3 and Q4 that we can look at uh in 16:23 16 minutes, 23 seconds terms of you know the absolute numbers from movie as the winter months will start I think 16:32 16 minutes, 32 seconds we will face a uh good competition from profit pricing. 16:38 16 minutes, 38 seconds Okay. The the other question was sir if I look at the x morbi volume I think that has remained in a uh you know a 16:46 16 minutes, 46 seconds relatively narrow range of between 2.1 to 2.2 mm cmd. Now if I look at the kind of new areas that we have brought on 16:54 16 minutes, 54 seconds stream and that is definitely visible in the kind of momentum we have in the CNG and domestic segment but sir just wanted 17:02 17 minutes, 2 seconds to understand uh you know uh the industrial and commercial potential from all of the new areas that we have brought on stream over the last 3 four 17:10 17 minutes, 10 seconds years. Can we expect any meaningful delta to come in this portion of the industrial volumes over the next maybe 12 to 18 months or even longer? 17:21 17 minutes, 21 seconds Yes, we are expecting because if you look at our some of the gas where we are reaching by our steel pipeline if I give the I name if I name a few gas like 17:31 17 minutes, 31 seconds Ahmedabad rural uh DNH and some portion of Tane also where we are planning to reach industrial pockets with our steel 17:39 17 minutes, 39 seconds pipeline. We are expecting a good amount of volume increase to be specized industrial volume increase in this GS. 17:48 17 minutes, 48 seconds Any timeline you would want to put on that in terms of how we should sort of build that number? 17:55 17 minutes, 55 seconds I think uh we are expecting in the range of two to three lakh cmd in these areas in at least 18 months. 18:08 18 minutes, 8 seconds Uh right. And uh in terms of the announcement that was made in the last quarter that you are also now looking at 18:14 18 minutes, 14 seconds entry into the propane uh sale and distribution market. Any color you would like to throw sir in terms of how that is progressing any updates that can be shared. 18:26 18 minutes, 26 seconds Hello good afternoon. This is Chintan Sha from my sourcing team. 18:31 18 minutes, 31 seconds Yeah. Hi. Thanks for asking this question. Actually we have been working in this direction quite a lot and we are 18:39 18 minutes, 39 seconds uh currently in discussions with uh uh capacity providers at uh both the uh 18:47 18 minutes, 47 seconds both the portawa and kandla and we are in very u advanced discussions uh with this service providers. In addition to 18:56 18 minutes, 56 seconds that, we have also initiated discussions with uh the uh uh the fleet providers for arranging 19:03 19 minutes, 3 seconds the last mile logistics and uh we are also in advanced discussions with international propane suppliers. We are 19:10 19 minutes, 10 seconds discussing term fleet and figuring out what uh suits our basically uh our requirement. So we are discussing spot 19:19 19 minutes, 19 seconds as well as term uh kind of proposals with them. As of now we are under discussion and probably uh in in next 19:27 19 minutes, 27 seconds few months uh we'll get some good uh breakthrough in this. 19:33 19 minutes, 33 seconds Understood sir. One last question if I may just a housekeeping question. The capex guidance for FI26 was shared at about 800 kores. Can you kindly share a 19:43 19 minutes, 43 seconds similar guidance for FI27 if possible? 19:48 19 minutes, 48 seconds I think FIC that see FI27 would be an year where in the new company the new form would be there you only look at PNG 19:57 19 minutes, 57 seconds and yeah and PNG yeah the guidance would be around the same 800 to,000 course will be investments in this area but the rest things which will be will be coming 20:06 20 minutes, 6 seconds back understood understand thank you so much and all the 20:22 20 minutes, 22 seconds moderator. Next question please. Thank you. 20:24 20 minutes, 24 seconds Thank you very much. The next question is from the line of Achala from Ambid Capital. Please go ahead. Sir, am I audible? 20:32 20 minutes, 32 seconds Yes, please. 20:34 20 minutes, 34 seconds Uh so just wanted to know one data point. So if you can uh share the CNG realization per kg or per SCM from FYI 20:42 20 minutes, 42 seconds 20 to FI25 that would be helpful sir. Your you mean the sales price? 20:49 20 minutes, 49 seconds No sir. CG uh realization average CNG realization per kg or perm. 21:00 21 minutes Okay. 21:02 21 minutes, 2 seconds I think margins we are disclosing on a company level. We are not segmenting the markets and disclosing. 21:12 21 minutes, 12 seconds Got it. Okay. That's it. 21:16 21 minutes, 16 seconds Thank you very much. The next question is through the line of AIT M Ara from Access Capital. Please go ahead. 21:26 21 minutes, 26 seconds Yeah. Hi, good afternoon. Uh just wanted to know what was the mori volume in Q2 and what is the run rate currently? 21:38 21 minutes, 38 seconds Uh mori volume is around 2 mm cmd sorry two 21:47 21 minutes, 47 seconds okay and run 1.7 to 1.8 date. That's what uh is the rate. 21:59 21 minutes, 59 seconds Got it. And the PNG versus propane gap of 4 to 6 rupees that you mentioned was for Q2 or as the current gap that you mentioned. 22:08 22 minutes, 8 seconds That was for Q2 P and currently it would be how much? 22:13 22 minutes, 13 seconds It would be less than I think Q2 which will increase uh in coming months but uh the range of five to six months. 22:22 22 minutes, 22 seconds Sure. Also lastly like what is now the timeline for completion of the entire scheme? Uh earlier I think you had mentioned October if I'm not wrong. 22:34 22 minutes, 34 seconds We did mention that we'll do it in last quarter. That's what uh the response was from management in the last call. We maintain that we'll we'll be completing 22:43 22 minutes, 43 seconds it by uh we expect that MCA hearing will get over and we'll get a final order from MCA by December 2025. 22:52 22 minutes, 52 seconds That's right. and and the entire process in terms of let's say relisting or GSPL that will take how much more after that? 22:59 22 minutes, 59 seconds Uh should typically take two to three months kind of time frame once we have got uh effectively in place. 23:06 23 minutes, 6 seconds Got it. Got it. That's all for me. Thank you. 23:10 23 minutes, 10 seconds Thank you very much. The next question is from the line of Mik Patel from Aquarius. Please go ahead. 23:20 23 minutes, 20 seconds Thanks for the opportunity. 23:22 23 minutes, 22 seconds Uh just a quick question. Uh one uh what kind of volume visibility uh do you 23:29 23 minutes, 29 seconds expect in a north market uh particularly on South Kra side and in your geographies 23:39 23 minutes, 39 seconds we we are expecting at least uh 2 mm cmd in Modi market and uh slightly higher than that in non Modi markets. 23:50 23 minutes, 50 seconds So this is what world you are doing currently right I'm saying that within a year or two as your network expanded then the new geographies and you 23:59 23 minutes, 59 seconds completely off this addition additional volume or existing volume 24:07 24 minutes, 7 seconds no no that that I think I'm answered for the next quarter or I think this year but I think we are planning to add at 24:14 24 minutes, 14 seconds least uh half a million across the market. 24:19 24 minutes, 19 seconds Okay. So across both non morabi and the neo you adding to around.5 cm volume next year. 24:28 24 minutes, 28 seconds Yes. Yes. 24:30 24 minutes, 30 seconds Got it. And uh on this group has done one uh LNG tie up with Qatar 24:38 24 minutes, 38 seconds uh that was a couple of weeks back. uh can you just share the rational and thought process and already group has 24:45 24 minutes, 45 seconds done one more contract sometime in the beginning of this calendar year for 4 million t so what's the rational for 24:52 24 minutes, 52 seconds that and uh I mean today we are doing around the 12 mm cmd 11 mm cmd volume on 24:59 24 minutes, 59 seconds a trading side why this number can go up after this addition of new supply contract 25:08 25 minutes, 8 seconds this is this side I'm Sintan Sha from sourcing team. Uh thank you for asking this question Olivi. Uh as you are 25:16 25 minutes, 16 seconds rightly aware that we have done uh a recent contract with Qatar Energy. You know as uh the uh the press release says 25:26 25 minutes, 26 seconds uh the volumes are up to 1 MTPA and the contracts volumes uh so volumes begin in 2026 and the term for the contract is 25:35 25 minutes, 35 seconds for 17 years. The most important thing uh we need to take note of here is like uh this is a long-term contract and the 25:44 25 minutes, 44 seconds volumes in 26 when the market conditions are tight will be at long-term prices. 25:49 25 minutes, 49 seconds So as this volume kicks in will help group to uh uh uh to cater to their customers 25:58 25 minutes, 58 seconds at a more competitive uh pricing proposals and it will bring in more uh uh what do you say help in better 26:07 26 minutes, 7 seconds realizations of modules. The second question was regarding the point4 MTPA that we have tied up with uh another 26:14 26 minutes, 14 seconds supplier. So uh as you are aware that it is on Henry uh index uh at that point in 26:23 26 minutes, 23 seconds time the demand in the domestic market was for that kind of a product. So GSPC brought in that product and they have sold large amount of that volumes in the 26:32 26 minutes, 32 seconds domestic market and those volumes will begin in vendor 627 with the downstream customers. So 26:40 26 minutes, 40 seconds that that will again help us in building our portfolio for the group. 26:46 26 minutes, 46 seconds Got it. So will this help to increase the overall trading volume which has been in the range of around uh 10 to 12 mm AMD over the last couple of quarters. 26:57 26 minutes, 57 seconds So once this incremental I think you should expand your TT right overall volume. 27:05 27 minutes, 5 seconds Yes. 27:06 27 minutes, 6 seconds So bringing in more competitively priced LG volumes will help us uh uh expand RT. 27:13 27 minutes, 13 seconds Uh uh you know uh currently the problem is uh with the with the prices of propane and the LNG prices which are 27:22 27 minutes, 22 seconds actually at 17 18% currently and propane is at around 12% linkage of brand. So 27:28 27 minutes, 28 seconds once uh this uh scenario uh changes probably we expect that some improvement 27:35 27 minutes, 35 seconds in this scenario from April 2026 so first quarter of 26 27 then probably we can see uh more volume from more coming in portfolio again. 27:47 27 minutes, 47 seconds Got good question. Thank you. 27:53 27 minutes, 53 seconds Thank you very much. The next question is from the line of Vicas Chin from CLSA. Please go ahead. 28:05 28 minutes, 5 seconds Yeah. Hi. Uh thanks for taking my questions. Uh just wanted to check uh when you know when we are doing our 28:12 28 minutes, 12 seconds basic analysis of uh the propane business uh do we get a sense that this business could you know over the last few 28:21 28 minutes, 21 seconds quarters or so have seen margins uh you know players making margins around 10 11 rupees per SCM or so or it's much lesser 28:29 28 minutes, 29 seconds than that in terms of gross margins that I'm talking about is is that kind of a margin expectation 28:37 28 minutes, 37 seconds in the ballpark it's it's far too optimistic. I think the number is too optimistic. 28:46 28 minutes, 46 seconds We don't see this kind of numbers uh to be realized in that particular segment would be much lower. 28:54 28 minutes, 54 seconds So sir uh just wanted to understand if we ourselves will offer a more expensive product as well as a cheaper product 29:03 29 minutes, 3 seconds then what will be the incentive of the customer to buy the expensive product? 29:10 29 minutes, 10 seconds They would obviously want, you know, are are we basically uh kind of pushing for a quicker move 29:18 29 minutes, 18 seconds away from natural gas into propane for our customers and only basically you know for next two years 29:26 29 minutes, 26 seconds there is a challenge unless and until we see the the wave of LNG from new sources coming into the market there will be 29:35 29 minutes, 35 seconds there will be a challenge. So to address to that particular challenge probably we have strategically 29:42 29 minutes, 42 seconds uh taken this decision to enter into the propane business. So doing this particular business during first two 29:50 29 minutes, 50 seconds years will help us uh bring in our customers in our portfolio. will remain with us and in 29:57 29 minutes, 57 seconds addition to that we are also working on a strategy wherein we can bring in more competitively tied LG which will which 30:04 30 minutes, 4 seconds will I think which would be uh uh able to compete with propane prices across the year so that in long-term we can 30:13 30 minutes, 13 seconds offer a product where customers will remain on gas with us 30:20 30 minutes, 20 seconds so say assuming that in about a couple of quarters time all the required tie-ups are in place and we start doing 30:28 30 minutes, 28 seconds propane. Is it fair to assume that we expect a large part of this 2M CMD 30:34 30 minutes, 34 seconds customers who are buying natural gas to shift to propane even although still staying our customers and would you say 30:42 30 minutes, 42 seconds that maybe you can garner even more than 2 mm CMD the ones whom you would have lost to propane as becoming your customer so it might be dilutive to 30:51 30 minutes, 51 seconds margins but it'll be offset by higher volumes yes but the idea is not to market focing 31:01 31 minutes, 1 second customers. It's to bring in the customers that we have lost. Okay. 31:08 31 minutes, 8 seconds Okay. Okay. And u uh yeah I think uh other than that in terms of margins uh we we've had uh a very strong one. 31:19 31 minutes, 19 seconds And should we expect that margins sustain in this five and a half six kind of a range or any guidance on margins in 31:28 31 minutes, 28 seconds this for this coming quarter and maybe in the medium term that we are targeting I think we are already given the 31:35 31 minutes, 35 seconds guidance uh I we have sticking to the old guidance of 4.5 to 5.5 okay we're sticking to that guidance 31:42 31 minutes, 42 seconds okay yeah thank you so much thanks a lot thank you thank you very much. A reminder for 31:50 31 minutes, 50 seconds participants to press star in one in order to ask a question. 31:56 31 minutes, 56 seconds The first next question is from the line of Nitan Tari from Philip Capital, India. Please go ahead. 32:05 32 minutes, 5 seconds Uh good evening sir. Thanks for taking my question. So uh so can you also provide a guidance on volume a very specific guidance for FY 26 as well as 27 like you provided for the margin. 32:20 32 minutes, 20 seconds Yeah I think if you look at our portfolio portfolio is dominated by industrial volumes. So basically see you 32:26 32 minutes, 26 seconds can see a 13%age growth and close to 10 to 7%age growth in the domestic and uh 32:33 32 minutes, 33 seconds uh other segments. But only a challenge is with respect to the industrial segment which is there. So practically my 50% of the volumes are basically fluctuating because of the prices of 32:42 32 minutes, 42 seconds propane and natural gas. So if the propane we are competitive to g to propane in in the long term then 32:50 32 minutes, 50 seconds basically we will be looking at a volume of more than 10 mm cmd. But if it is uh the prices are prop competitive then 32:58 32 minutes, 58 seconds maybe a 9 or 10 mm cmd around that range will be moving. considering that we'll be growing in the CG we'll be growing in the CNG and the domestic sectors. 33:10 33 minutes, 10 seconds So we've already done I think about eight and a half for the first uh half in this year right I mean so moving into second half uh given the situation 33:18 33 minutes, 18 seconds remains as it is so would it be reasonable to say that we'll be like you know sub 9 in FI26 and maybe like just 33:26 33 minutes, 26 seconds anywhere between 9 and 10 for FI27 would that be a right decision yeah looking at the present conditions if nothing changes yes that you're 33:35 33 minutes, 35 seconds that's right but if prices or things change then it will Okay sir. And my second question was u 33:42 33 minutes, 42 seconds on the consumption behavior in Modi. So as you mentioned that our current run rate is around 1.7 to 1.8. So what can 33:49 33 minutes, 49 seconds be taken as a baseline volume below which we won't uh go down? I mean so is this 1.7 1.8 a baseline volume and how 33:58 33 minutes, 58 seconds do consumers in mobile typically uh decide between say and natural gas and and I'm just trying to assess the 34:05 34 minutes, 5 seconds baseline consumption that is not going to change for us uh no matter what I think you are right 1.7 1.8 8 is our baseline volume is moving. 34:17 34 minutes, 17 seconds Okay. So this much gas they're going to consume irrespective of wherever the price differential or steaming or discount could be. 34:25 34 minutes, 25 seconds Yes, you're right. 34:27 34 minutes, 27 seconds Okay. And so what actually is the motivation behind having this mix on the part of consumers? I mean I suppose like you know a consumer would then be taking 34:36 34 minutes, 36 seconds both propane and natural gas in in a certain mix or a certain like you know percentage. So how do they uh I mean like you know go about this if you can like you know throw some light on that. 34:47 34 minutes, 47 seconds Uh there are some highquality manufacturer in Mori and uh historically and as for the to remain in the 34:55 34 minutes, 55 seconds competition they prefer natural gas compared to propen because of operation needs and quality uh management. 35:04 35 minutes, 4 seconds Okay. So uh natural gas is a more consistent uh uh like you know heating source when it comes to quality. That's what you're saying. Yes. 35:12 35 minutes, 12 seconds Yes. 35:13 35 minutes, 13 seconds Okay. Thank you. Thank you. That's all from mine. 35:19 35 minutes, 19 seconds Thank you very much. The next question is from Milina Sabrihazarika from MK. Please go ahead. 35:28 35 minutes, 28 seconds Yeah. Uh so first clarification you mentioned the Q2 m volume was around two or it was around 2.2 two 35:37 35 minutes, 37 seconds around two around two cm okay and and how much was 35:43 35 minutes, 43 seconds the uh EPM uh shortfall uh overall for the priority sector it was around 55% of 35:50 35 minutes, 50 seconds the shortfall yeah the CNG shortfall was 64% 35:57 35 minutes, 57 seconds 64% CNG shortfall okay and and PEX for each one was how 36:06 36 minutes, 6 seconds FX was around 250 for this quarter or for the entire half half year. 36:12 36 minutes, 12 seconds Yeah, for the half year it was 282 crores. 36:19 36 minutes, 19 seconds 282 course. Okay. Okay. Uh second question is on uh on this uh I don't know whether you have looked into it or 36:25 36 minutes, 25 seconds not. So there is this committee report uh which came a couple of days back uh um uh which was like uh made by PK 36:35 36 minutes, 35 seconds Saraf. Uh so again they've been talking about like uh studying allocation for PNB segment and various other measures. 36:42 36 minutes, 42 seconds So u so what is the assessment uh if you look into it uh of this report is there a reook into this whole allocation uh 36:50 36 minutes, 50 seconds allocation of uh lithium gas to CNG sector or uh it's just genic report 36:59 36 minutes, 59 seconds it's a welcome recommendation for CG for industry per say CG industry on its own has been asking for higher FM allocation 37:07 37 minutes, 7 seconds and the industry expert committee report further endorses the requirement to give a higher allocation for uh it higher ATM 37:14 37 minutes, 14 seconds allocation for industry particularly for CNG and PNG segment I mean we are also aware at the same time we are aware of the challenges associated with the 37:23 37 minutes, 23 seconds limited domestic production so while we hope and support the case for higher allocation I mean one has to be 37:30 37 minutes, 30 seconds realistic enough to understand that uh and things can't move drastically from what we have currently 37:37 37 minutes, 37 seconds right so right okay fair enough yeah and and last question is how much is GSPC volumes in Q2 and Q1 also? 37:48 37 minutes, 48 seconds Uh I think Q1 numbers are there. It's close to 9.5 mm cmd. 37:53 37 minutes, 53 seconds Q2 results are yet to be yet to be submitted to the board. 37:58 37 minutes, 58 seconds Okay. Okay. Thank you so much. All the best. 38:02 38 minutes, 2 seconds Thank you very much. Participants who wish to ask a question may press star and one at this time. 38:10 38 minutes, 10 seconds The next question is from the line of Yogesh Patil from Dollar Capital. Please go ahead. 38:18 38 minutes, 18 seconds Thanks for taking my question sir. Sir could you please provide a detailed breakup of a gas sourcing? How much was 38:25 38 minutes, 25 seconds the APM NWD BG British Gas Qatar gas? If you could provide it in MMSD term that would be really helpful. 38:37 38 minutes, 37 seconds Yeah, the APM volume was close to 2.0. 38:39 38 minutes, 39 seconds 03 UL gas was close to 0.44. 38:45 38 minutes, 45 seconds The long-term contracts were 3.44 and the short-term contracts are 2.85. 38:56 38 minutes, 56 seconds The short-term contracts of 2.84 includes the spot also. Yeah, it includes the spot the IGX also. 39:05 39 minutes, 5 seconds Okay. And the NWG has come down from 0 54 to the 4.44 NQ that's the correct understanding. 39:15 39 minutes, 15 seconds Yes. 54 to 4.44. Yes, you're right. 39:19 39 minutes, 19 seconds Yeah. And just lastly wanted to check the more PNG industrial prices nowadays 39:26 39 minutes, 26 seconds rupees perm if possible close to 434 SMS. 39:38 39 minutes, 38 seconds It's four 46.6 M including of uh GST correct. 39:46 39 minutes, 46 seconds Uh no no it's not back sorry 39:56 39 minutes, 56 seconds inclusive inclusive of taxes or exclusive of taxes sir 46.9 40:05 40 minutes, 5 seconds uh uh present price in Mori uh without VA 44 rupees. 40:15 40 minutes, 15 seconds Thank thanks a lot sir and wish you best of luck. Thank you. 40:20 40 minutes, 20 seconds Thank you very much. Participants who wish to ask a question kindly press and one. The next question is from the line of Akash Ma from Canara HSBC live. 40:31 40 minutes, 31 seconds Please go ahead. 40:33 40 minutes, 33 seconds Uh yeah hi uh just wanted to check uh of this baseline 1.7 1.8 8 mm SMD of Mori volumes that you have spoken 40:42 40 minutes, 42 seconds uh how much of uh this uh I mean how many people don't have uh I mean the facility to actually use propane and 40:50 40 minutes, 50 seconds only uh use gas help us with that I think uh 40:58 40 minutes, 58 seconds I think more than 200 customers are uh only on natural gas 41:06 41 minutes, 6 seconds uh so in terms of volume that would How much? Like 1.5 around 1.5 1.6. 41:17 41 minutes, 17 seconds Okay. Okay. Yeah. Yeah. That's helpful. Thanks. Okay. That's it. 41:24 41 minutes, 24 seconds Thank you very much. Participants who wish to ask a question may press star and one at this time. I repeat, 41:31 41 minutes, 31 seconds participants who wish to ask a question may press star and one at this time. 41:42 41 minutes, 42 seconds If there are no further question, no further participant, we can close the call. 41:47 41 minutes, 47 seconds Okay sir. As there are no further questions, I would now like to hand the conference over to management for closing comments. 41:58 41 minutes, 58 seconds The next question is from the line of Kala from Enam. Please go ahead. 42:04 42 minutes, 4 seconds Hi, thank you sir for giving me the opportunity. I just wanted your views on you know global gas pricing. Uh when do you see you know the supply increasing 42:13 42 minutes, 13 seconds and you know the current uh jump that has been there last two three years that normalizing. 42:22 42 minutes, 22 seconds So uh we have seen this uh past two three years have been very challenging but uh know the supplies from uh US have 42:31 42 minutes, 31 seconds as you are aware that US volumes have started hitting the market and probably last month they have exported more than 42:39 42 minutes, 39 seconds 145 caros uh in October. So we expect that supplies from US will start very soon 42:46 42 minutes, 46 seconds and in 2026 we'll see in the last quarter supplies from the new projects from Tatar also will start. Uh honorable 42:55 42 minutes, 55 seconds minister energy minister of Tatar indicated that in various forums also. 43:00 43 minutes Uh in addition to that there is one more uh interesting part that we need to take consideration of is like uh uh Russian 43:10 43 minutes, 10 seconds volumes that is uh uh Yamal LNG which is actually going through a very volatile 43:18 43 minutes, 18 seconds scenario because uh Europe is going to ban all Russian volumes by 27. So those volumes will be placed somewhere in the 43:26 43 minutes, 26 seconds market or probably if Russia comes on the table and uh something gets sorted out it will not be uh before Russia asks 43:34 43 minutes, 34 seconds for some uh relaxation and international sanctions. So you know 26 and and 27 will be very interesting to see when new 43:42 43 minutes, 42 seconds volumes hit the market and how uh this geopolitical issues uh play out. So we 43:49 43 minutes, 49 seconds anticipate that 27N onwards there should be reasonable prices in the market. 43:56 43 minutes, 56 seconds Sure. But by reasonable where do you expect spot to settle? 44:02 44 minutes, 2 seconds So there are two aspect to this you know spot in terms of absolute numbers may 44:09 44 minutes, 9 seconds come down to single digits $78 that is what we understand but in the uh uh uh 44:17 44 minutes, 17 seconds in the near term you know even rent outlook is bearish. So in terms of linkage we may not see a very uh 44:23 44 minutes, 23 seconds competitive prices. Uh so there uh what what we can say is like that yeah spot prices will come down but not in terms 44:32 44 minutes, 32 seconds of linkage they see some link is coming down bit later. 44:38 44 minutes, 38 seconds Got it. Got it. And at $78 spot uh is industrial gas comparative versus propane. 44:49 44 minutes, 49 seconds So again it's actually the function of brand you know because uh uh our customer base uh utilizes uh the 44:58 44 minutes, 58 seconds products which are brand derivatives. So unless and until we are able to bring in uh LNG at competitive prices to those 45:07 45 minutes, 7 seconds alternate fuels absolute number may make little sense. Okay. 45:15 45 minutes, 15 seconds Yeah. 45:17 45 minutes, 17 seconds So but then what is the solution you know for us to be more competitive versus propane regain the loss share in 45:24 45 minutes, 24 seconds terms of gas and not selling propane or is there a way or no? 45:31 45 minutes, 31 seconds Okay. Uh can you please come again with a question? 45:34 45 minutes, 34 seconds My question is is there a way we can be very because you said that customers are using fuel which is linked to brand. So if brand decline gas will also decline but the other tools will also decline. 45:45 45 minutes, 45 seconds So is there a way we can regain our loss share that lost to propane in mor? 45:51 45 minutes, 51 seconds Yeah. So yes. So what we have seen historically is like that propane behaves in a propane prices behave in a 45:58 45 minutes, 58 seconds seasonality. During summers probably the linkage of propane is around 12 uh 46:05 46 minutes, 5 seconds between uh 12 to 13% and during winters the linkage to burn is around 15% or so. 46:13 46 minutes, 13 seconds So on an average basis if you are able to source competitive priced LNG maybe around 12 46:20 46 minutes, 20 seconds or maybe little bit less than 12 then it will make sense for catering to this kind of customers who switch over to 46:28 46 minutes, 28 seconds propane for entire year. So bringing in LNG at such prices will help to address this problem. Got it. Got it. and RSB is 46:37 46 minutes, 37 seconds available currently in the market 12% and below slope. 46:43 46 minutes, 43 seconds We are into market to source more LNG and we have been interacting with various suppliers but you know as I said that currently the Brent outlook is also 46:51 46 minutes, 51 seconds bearish. So people are just and people are also anticipating that the well is coming but still uh suppliers are uh 47:00 47 minutes taking a approach where they want to wait test the waters and provide proposals. So it's not like uh yeah 47:08 47 minutes, 8 seconds available on the table but we have to negotiate hard. 47:11 47 minutes, 11 seconds Got it. Got it. Great. Thank you. Thank you so much. 47:17 47 minutes, 17 seconds Thank you very much. The next question is from the line of Indra Kumar Gupta from PL Capital. Please go ahead. 47:25 47 minutes, 25 seconds Yeah, thank you for the opportunity. Uh just a small question. I just wanted to know the APM new well gas long-term short-term for last quarter. If you can 47:34 47 minutes, 34 seconds please uh disclose that last okay last quarter APM was close to 47:43 47 minutes, 43 seconds 2.06 the new gas was point 54 the long-term contracts are close to 47:51 47 minutes, 51 seconds 3.39 and the short-term contracts are close to 3.04. This was for Q1 F26, right? 47:59 47 minutes, 59 seconds Yeah, you're right. Thank you. Okay, that's all. Thank you. 48:05 48 minutes, 5 seconds Thank you very much. The next question is from the line of Yogesh Patel from Dollar Capital. Please go ahead. 48:14 48 minutes, 14 seconds Thanks for an opportunity again. In a hypothetical case, if the MOI association approach you or come up with 48:22 48 minutes, 22 seconds a proposal to Gujarat Gas Management for the PNG industrial volume and they assures you about a major volume 48:30 48 minutes, 30 seconds consumption at the PNG industry and ask us to cut down the prices of the PNG industrial. So are we in a position uh 48:39 48 minutes, 39 seconds to cut down the PNG industrial prices and and bring back the bring back the volume of PNG back I mean and just 48:47 48 minutes, 47 seconds hypothetical question uh that that depends on the number they are asking for everything depends on 48:55 48 minutes, 55 seconds that I think it's a hypothetical question and it is a hypothetical answer also for that 49:02 49 minutes, 2 seconds definitely sir I can understand no fun discussing Yes. Yeah. Thanks. Thanks. Thanks. No worries. Thanks. 49:12 49 minutes, 12 seconds Thank you very much. Participants who wish to ask a question may press star and one at this time. 49:21 49 minutes, 21 seconds As there are no further questions, I would now like to hand the conference over to management for closing comments. 49:30 49 minutes, 30 seconds We are heading towards closure of the scheme of arrangement in Q3. So by December 2025 we're expecting the effective date should occur if 49:39 49 minutes, 39 seconds everything goes as per our plan and I look forward to have meaningful interaction with all of you in Q3 and call in all priority in a merge entity environment. Thank you all. 49:52 49 minutes, 52 seconds Thank you very much on behalf of Gujarat Cas Limited. That concludes this conference. Thank you for joining us.