In the 22nd year, the city’s gas volume will rise by 25-27%, the report said

CGD companies are in the spotlight due to rising gas prices. Some of these companies, such as Gujarat Gas Limited and Inrarapasta Gas Limited, have taken some price increases. The same goes for transferring high gas costs to customers. With global gas prices rising, domestic gas prices are likely to see some hike from October 1.

However, despite rising prices, the companies are expected to see good sales growth. Gas remains the cheapest and cleanest alternative to other fuels. Rising fuel prices have made gas and gasoline the most popular options for car fuel.

Compressed natural gas, or CNG for vehicles, and pipeline natural gas, or PNG-sales for homes and industries are set to increase by 25 to 27 percent in this budget year. Industrial activity is also on the rise. Moreover, the sector has a higher registration value than competing fuels such as gasoline, diesel and furnace oil.

Demand growth is also expected to be lower than last year. The first quarter of FY21 had a significant impact on movement and industrial activity due to nationwide locks. In contrast, the locksmiths have had little impact this year due to the large size of the locks and the small impact on the government.

It is expected that the companies will also benefit from the expansion, as the benefits of the low base may help. Extensive CNG networks and new geographic areas are expected to sustain growth.

While growth is strong, revenues are also driven by good operating margins by CGD companies. In the first half of the 22nd century, domestic gas prices were at an all-time low, with only walking since October 1. In the first half, only the imported liquefied petroleum gas (LNG) was higher and in that case, the lingering operators received some higher costs.

In addition to stable margins, strong balance sheets (with 0.3x debt / Ebitida and cash) From March 31, 2021, 4,600 kroner) will continue to support the loan profiles of urban gas operators, according to a crystal rating study of five urban gas distributors. These account for about three-quarters of the industry.

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