GUJARAT ENERGY LIMITED (GUJENERGY) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Gujarat Energy Ltd. Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Davi, Company Secretary, for the opening remarks. Thank you, and over to you, sir.

Thank you, Alec. Good afternoon, everyone. We have with us Avantika Singh Aulak, Madam, Managing Director, Gujarat Energy Limited, as well as Senior Management Team from Gujarat Energy. I hand over, I request the Managing Director, Madam, to take us through details of operating and financial performance. Over to you, Madam, please.

Good afternoon, everyone, respected shareholders, distinguished analysts, members of the investor community, ladies and gentlemen. On behalf of Gujarat Energy Limited, I extend a warm welcome to all of you to the company's earnings call for the first quarter of FY2627. Thank you for taking the time to join us today. We are pleased to present the operational and financial performance of GEL for the quarter ended 30th June. This quarter is significant for the company as, apart from delivering excellent performance across our key business segments, we also completed the listing and trading of our additional equity shares allotted pursuant to the scheme. Our post-merger performance reflects the strength of our integrated business model, bringing together scale, sourcing strengths, operational synergies, and broader capabilities across the energy value chain. We are today positioned as one of India's leading integrated energy companies, with a presence across gas trading, city gas distribution, exploration and production, and renewable energy. This integrated business model enables us to navigate evolving energy markets, support sustainable growth, and create long-term value for stakeholders. Let me begin with our gas trading business. During the quarter, global energy markets witnessed significant disruption due to geopolitical developments and supply-side constraints. Despite these challenges, we were able to leverage our robust sourcing capabilities, extensive supplier network, and deep market expertise to secure critical LNG volumes for our customers. During the quarter, the company sourced 10 LNG cargos despite unprecedented circumstances, demonstrating the resilience of our procurement network and our commitment to uninterrupted customer service. The gas trading segment delivered strong profitability with earnings before tax increasing to 726 crores in this quarter as against 237 crore in the previous year same quarter, reflecting a growth of 206%. I will now move to our city gas distribution business, which continues to demonstrate healthy momentum across customer categories. In the CNG segment, we achieved a new benchmark with CNG volume of 3.76 MMSEMD during this quarter compared to 3.33 MMSEMD in the previous quarter, registering a growth of 13%. CNG volumes in Gujarat recorded a 12% increase while areas outside Gujarat Our CNG infrastructure has expanded to 844 stations. During the quarter, the company added six new CNG stations and upgraded nine CNG stations. I would like to draw your attention to the fact that the company is now planning to add more than 75 new CNG stations and upgrade approximately 70 CNG stations during the current financial year. CNG continues to remain an attractive fuel option for customers, offering a compelling economic advantage being approximately 46% cheaper than petrol and 25% cheaper than diesel based on current pricing. In the P&G domestic segment, we continued to witness healthy customer additions. During the current quarter, the company added approximately 59,000 new domestic P&G customers, taking our cumulative domestic P&G customer base to more than 24.77 lakh households. The P&G penetration drive has also gained strong momentum. In the wake of constrained LPG supplies caused by the conflict in the Middle East, the Government of India took policy measures to boost PNG connections for domestic usage. In support of this initiative, GEL has undertaken focused actions including aggressive marketing campaigns across various digital and print medium, mobilization of additional contractors, For execution of new connections and prioritized outreach to essential category customers such as hospitals, community kitchens, etc. These efforts have translated into visible results. From January to June 26, GEL connected approximately 91,000 PNG connections and more than 1,000 commercial PNG connections under the PNG drive. In the P&G commercial segment, the company registered a volume of 0.17 MMSEMD in Q1. As of now, we serve more than 16,600 commissioned commercial customers across our network. We expect additions in both domestic and commercial categories to remain robust as our newer geographical areas in Punjab, Haryana, MP, Rajasthan, Maharashtra continue to mature and deepen customer penetration. The P&G industrial segment delivered a strong performance during the quarter. Industrial sales volumes include 7.17 MMS EMD in Q1 F527, from 4.71 MMS EMD in Q1 F526, registering a growth of 64%. The Morbi Ceramic Cluster continues to remain our largest partner in the P&G industrial segment. Our successful supply strategy provided significant support to the Morbi ceramic industry during the crisis period. The average volume in the Morbi ceramic cluster during the quarter was 5.67 mm SCMD, while volume outside the Morbi cluster was 2.04 mm SCMD. Morbi cluster volume registered an increase of 181% in Q1 FY27 compared to Q4 FY26. It is especially noteworthy that during the quarter, the availability of alternate fuels, such as propane, remained adversely impacted, and the fact that we could source and ensure continued supply of gas, even against an increased demand from Morby Cluster, is in itself a testament to our gas-trading capabilities. During the crisis period, our efforts in ensuring continuous gas supply to Morby Cluster has resulted into increase in gas volumes. Rising from approximately 0.4 mm SCMD in April 2026 to around 8 mm SCMD during May-June 2026. We will continue to closely monitor key market dynamics, including spot RLNG prices, availability of alternate fuels, and end-consumer demand trends across industries in our operating areas. Our focus remains clear to maintain the right balance between volume growth and sustainable margins while continuing to serve our customers reliably and efficiently. I will now present the financial highlights for the quarter. For Q1 FY27, we reported revenue from operations of 9,670 crores compared to 5,924 crores in Q1 FY26. Representing a year-on-year growth of 63%. EBITDA stood at 1,482 crores compared to 896 crores in Q1 FY26, reflecting a growth of 65%. Profit after tax stood at 998 crores compared to 561 crores in Q1 FY26, registering a growth of 78%. On the volume front, Our overall sales volume stood at 15.66 MMSEMD. Notably, the gas trading segment continued to witness strong traction with sales volumes reaching 12.22 MMSEMD, reflecting the company's growing presence and capabilities in the gas marketing and trading business. Out of this volume, 8.9 MMSEMD volumes were allocated for our CGD segment. Further, the CGD segment contributed 12.34 mm SCMD, underpinned by a balanced volume mix across customer segments. Our infrastructure base also continues to expand. The company's total pipeline network spans approximately 45,900 kilometers across six states and one union territory. During the quarter, the company invested 127 crores. In CGT infrastructure, sustainability and safety remain central to our operations. Through average Q1 CNG sales to industrial customers, the company has reduced carbon dioxide emissions by approximately 1.07 crore kilograms per day due to customers using PNG instead of coal. Similarly, through average Q1 CNG sales, The company helped reduce CO2 emissions by approximately 21 lakh kilograms per day due to the use of CNG for transport instead of petrol or diesel. In conclusion, Q1FY27 has been a strong quarter for Gujarat Energy Limited. Our performance reflects the strength of our integrated business model, the resilience of our supply chain, the quality of our execution, and the delegation of our teamwork. Looking ahead. Global energy markets are likely to remain uncertain due to continuing geopolitical development. However, we remain confident in our strategy. Our diversified sourcing portfolio, strong infrastructure, disciplined capital allocation, and customer-centric approach positions are swelled to navigate challenges and capture growth opportunities arising from India's transition towards cleaner energy solutions. We remain committed to delivering sustainable growth, supporting India's cleaner energy transition, and creating long-term value for all our stakeholders. With this, I now request the moderator to open the floor for questions and answers, and my leadership team and I will be happy to respond to your queries. Thank you.

Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question comes from the line of

Probal Sen with ICICI Securities. Please go ahead.

Thanks for the opportunity and congratulations on the strong side of the number. Firstly, just to understand the math a bit, you mentioned that overall sales volume is 15.66, whereas gas trading sales is 12.2 and of course EGD sales is 12.3. Apologies for not understanding, where is the balance 3.4 mm SCMD coming from? That is upstream sales, right?

No, that is the gas trading which we have done for other than the CGD business.

But you just mentioned that 8.9 mm SCMD was internal out of 12.2.

Yeah.

So then that balance would be the external sales, right?

Yeah, that would be the external sales, right.

So, then that would be 8.9 plus whatever it is. I want to be arriving at the 15.6.

No, I will just tell you the numbers. 15.6 is the overall company number. The CGD segment number is 12.34. Right. And after removing the interest company sale of 8.9, that is close to 3.32.

Ah, okay. Okay, okay, got it. It's essentially 12.34 plus whatever has been sold externally. That is the overall sales price. Is that a fair way to look at it? Okay, okay.

Yeah, that's it. Got it, sir.

The second question was more about Morbi. If I understood correctly, ma'am mentioned 8 MMS CMDs for sales volume in the Morbi cluster for May and June. I just wanted to understand what is the run rate prevailing now, and what we are hearing is that propane availability is starting to become a bit easier. Just wanted to understand if that is having an impact on the business right now, and what is the respective pricing on even a rough average of what our industrial retail sales price is versus the propane equivalent price as of now.

Last quarter, we have sold more than 8 million volumes in Morbi. But post-July, the availability of propane has gradually improved because it has started sourcing from non-Middle East countries like USA and Venezuela and others. As far as the current run rate is concerned, I think we are delivering close to 3 million gas in Morbi and close to 5.3, 5.4 million.

Got it. And what would be the pricing, sir, if I can understand, in terms of rupees per SEM terms, roughly, hours as well as propane?

So ours is close to 78, and propane is close to 65.

And the other question was with respect to CNG, what kind of growth rate should one be looking at over the rest of the year? How confident are we of maintaining this 12-13% kind of growth in CNG?

I think we have been growing at close to 12% and this growth has continued and this quarter is going at 13% now. Basically, we are expecting that and as the MD told that, we are going to add on more stations now. So that growth is expected to, we will be able to sustain that growth for the next couple of years at least.

And I will come back in the Q5. Thank you so much.

A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Amit Murarka with Access Capital. Please go ahead.

Hi, thanks for the opportunity.

So, with regards to the Mori supply coming off to 3MS-CMD now, what is the visibility now you have of, let's say, going higher again or now that Profin is coming from U.S.? It's fair to say that the price cap will stay a bit elevated between propane and PNG, and therefore, it will be tough to basically gain volume back in the mobile market.

Well, currently, that is what it seems to be the case, because spot price is being close to $20, and propane pricing being what it is right now. I think there will be good amount, I mean gas prices would be at a premium to propane, and our expectation is that we will continue to do close to 3MD of gas at least in this quarter.

Understood. And if you could also then highlight

what is the margin that you would be making at, let's say, this price of $78, which is the Morvi price which you just mentioned. Like in Q1, obviously, you had the operating the leverage benefit, which I'm guessing will be missing in Q2 now. What really is the gross margin you're making here?

I think we are giving the margin at a company level and the segment level, and I think the segment results are there in the investor presence.

Okay, sure. And also, with regards to the propane plans, now that propane is getting available from other suppliers beyond Middle East, are you also looking to make more progress on your propane business plans?

So, yes, we have plans to have our own propane import facility. So, we have... We have basically shortlisted few sites in Gujarat where we can put up our own terminal. Those studies are going on. We will be coming to you with some details shortly. But we have plans to set up our own import and storage facilities of propane near the Morbi market.

Sir, just a last question, if I can. The third-party trading, gas trading volume has dropped to 3.3, as you mentioned, which I think was close to 5 earlier. So, again, what was the reason? Was it the high pricing or was it the sourcing issues which were there?

So, yes, because of the volume which got cut off from the Middle East. And because of the high prices, the volume has come up a bit. And this time, power volumes are also not there.

And any outlook you could give there in quarter or later half of the year?

I think in the long term, we do expect good third-party volumes. Especially in the year 28-29, where we expect pricing to be much more reasonable.

The long-term volume, you're saying, will still be four and a half, five range.

Yeah, I think it should be in that range, four and a half to five million.

The next question comes from the line of Hardik with ICICI Securities. Please go ahead.

Thank you for the opportunity, sir. There are two questions over here. Can you please share the gas loading needs during the quarter, and what was the cap tax we spent for Q1, and what would be for the FY27-20?

Yes. Can you repeat the question? We could not get you right.

What was the gas sourcing for Q1, and what is the capex guidance for FI27 and FI28, and any incremental capex are we doing on the gas trading segment?

So, there is no capex on the gas trading segment, but there will be a capex on the TGD segment, which practically we are giving a guidance of close to 1000 crores. We still stick with that. And with respect to the unit, the sourcing split of the CGD business or the entire thing?

CGD and plus, you know, even on the gas trading part.

On an overall level, we are doing close to 20% on term contract basis. Domestic gas is close to 12.5% and the rest is pot.

That's really helpful. Thank you.

The next question comes from the line of Bineet Banga with Nomura Holdings. Hi, sir.

Hi, sir. Thanks for the opportunity. A couple of questions on Gap's trading site. So, can you highlight how gas trading off-take contracts with your customers are structured, as in what proportion are back-to-back with a fixed margin and any trading volume that is exposed to pricing risk, like similar to Gale, where you have some rate of pricing risk in terms of sourcing on 9-month JCP average, whereas your off-take is on 3-month JCP. Is there anything like that in your case? And what explains very high marketing trading margin in this quarter?

So, we do have term contracts. Let's say, for example, in fertilizer, we have term contracts, which are on Brent on a three-month pricing basis. Same is the case with CKD. Most of the power consumers are on spot. As far as sourcing is concerned, it's a mix of Brent and Henryup. And obviously in CGD we have the safety and gas as well.

Any margin we can share, per-gibit margin, say for LNG as well as for domestic gas on the trading type?

So, domestic gas, which is basically HPHC gas, there are margins are fixed. Same is the case in fertilizer, where we can charge only a fixed marketing margin, which is close to 20 cents. In other segments, industrial and all, the marketing margin depends on the marketer at that point of time.

Okay, and sir, why was the margin so high in this quarter? Because I think fertilizer and PGD will be largely very nominal margin.

So what is the upside coming from?

I think we have sourced the gas at an appropriate time with respect to the margins which we have earned, and we had long-term agreements which were there linked on Brent. Basically, you have a dated Brent which comes in on an aging basis. So, based on that, basically, we had a slight advantage with respect to the product which we were offering to the market.

And, sir, next quarter, is there a chance for reversal of some of these gains when the prices stay reversed, when your nine-month, three-month spread, it gets reversed? Is there a chance of second quarter trading gains, some of it getting reversed?

There is no reversal. You mean to say negative numbers?

Yeah, negative, yes.

No, there will not be any negative numbers. I think we stick to our guidance. Last time we gave around 1,100 crores of profit from the gas trading business. That still remains.

Despite the very strong first quarter, despite the very strong first quarter,

you are still on a conservative basis, we are giving it at level 100. We speak to the earlier guidance which you are giving.

Okay. Yeah. So lastly, with the upcoming new LNG contract from Uniper, Qatar, I think even Total, will you have lower proportion of spot volume on the trading side and will that impact your trading business margin? Because from what I understand, spot, you can earn more margin. And when you have a longer term fixed contract, you will probably have a more back-to-back contract.

So, generally, we try and sell the long-term contract that we sign on a back-to-back basis. So, similarly, on the Henry F side, we have contracted some of the volumes on back-to-back basis. We don't keep all the volumes exposed. So, we do sign contracts whenever we do a long-term contract. But yes, it is expected to improve the profitability, and we will also be able to expand the business with these long-term programs.

And will this also help the CGD business in terms of lower proportion of spot and then you have higher contract energy, which is much cheaper and more stable price group too?

Absolutely. It will.

Okay, sir. Thank you, sir. I'll go back to the quiz.

The next question comes from the line of Yogesh Patel with Dollar Capital Markets. Please go ahead.

Thanks, sir. Thanks for taking my question, and congratulations for the good set of numbers.

A question related to gap sourcing breakup for CDD deepness, that would be helpful. If you could provide the MMS, AMD in terms of how much was the ATM, NWG, Exchange, and... Thank you again.

Yeah, I think we told that 12.44 was the volumes which we did in the CGD segment. Of that, close to 14% was APM, and 6% was the new well gas, and the sale pool gas was close to 2%, and long-term contracts we had close to 9%, and rest close to 69% was on a short-term or inter-segment sale basis.

Thank you. The next question comes from the line of Ajay Sharma, an individual investor. Please go ahead.

Can I ask on the... Can you hear me? Yeah, please go ahead. Can you hear me?

Yeah, we can hear you. Okay, so I want to ask for the gas trading, right, in terms of rupees per SCM, is there a margin target, right? Like, I noted that it is at 6 rupees per SCM in first quarter, last year was 3.5. And you gave some numbers for fertilizer and CGTS too. So, you know. Just quantify how much is the number in terms of HCM for fertilizers, CGD, and for other categories which you target?

I think what we have told as a guidance earlier also, basically we make a margin of close to 4 to 5% in the gas trading business. Yeah, there will be exceptional quarters which would be there, but we stick to that guidance again. So, it's not per SPM, is it? Is it a percentage margin you target? Yeah, it's a percentage margin which you target. Over-off, on a basis.

Okay, thank you.

The next question comes from the line of Nitin Tiwari with Philip Capital India. Please go ahead.

Hi, sir. Good evening. Thanks for the opportunity. I just had a clarificatory question on CNG sales. So, sir, is there any element of other than, I mean, so, I mean, after the amalgamation, I suppose, carbon-mati gas volumes would also be included in this sales. Does that have a right understanding or correct me if I am wrong over there?

No, it's a wrong understanding. It's a joint venture. So, only the profit is taken on a line-by-line basis.

So, this volume of 3.76 is only earth-wild Gujarat gas CNG volume. Yeah, you're right. Okay. Great. Thanks for the clarification. And secondly, on the industrial sales, I mean, are other than most industrial sales, I mean, it continues to languish somewhat and even in this. So, what is the roadmap for growing this segment? If you can throw some light on that and also any measures we are taking in other areas, other GAs where there is industrial consumer which is present and what we are doing about growing this segment.

Yes, currently we are doing more than approximately 2.2 MSCMD in other than Morbi. But we have certain promising regions like G&H, then Amlabad Rural, Sahaj, Karch, and Thane, where we expect much more volume. And as we expect LNG prices to...

So you mentioned three MMS in one and a half, two years.

The next question comes from the line of Probal Sen with ICICI Securities. Please go ahead.

Thanks for the opportunity again, sir. Again, coming back to the questions that Nitin asked earlier. The development of Ahmedabad, Rural, Aaneh, Kaj, Dahej, etc. has been ongoing for a while now. But just wanted to understand, is pricing the only constraint that we have been facing since, you know, volumes in these regions haven't really shown that much traction for the past, let's say, two, three years, where, you know, we look at industrial sales other than mortgage, they have broadly stayed in a fairly narrow range for a period of time. So, what LNG price would actually incentivize people to convert, if you can give us a sense of, you know, what is holding it back, and is there any other reason why volumes have not picked up in these regions?

See, while we are discussing on the non-Morbi areas, the main reason is not only price, we are in the process of developing the infrastructure also. In Ahmedabad, rural, Thane, etc., our pipeline network is in advanced stages and we are reaching the industrial areas. So, that is, we will be connecting the new industrial units, and then the volumes will start increasing. Just to share that in the non-MORBI section, we have added almost 86 new industries in the past, from April to June. And this will result in handy growth in the volumes from these areas. So it is not only the pricing differential which is the constraint, it is the infrastructure which we are developing. So that is why we are saying that gradually it will start resulting in the volumes.

You got it. So that is useful. But if I can ask a small follow-up, similar to Morbi where let's say propane is the main alternate fuel, can we get a sense of what are the key alternate industrial fuels that we are competing with in some of these new regions?

See, there are multiple alternate fuels like steam houses there in the Ankeshwar and South Gujarat area, then briquettes and solid fuels are there in other regions. So we are, I mean, having facing competitions from all these alternate fuels, but definitely we'll try to market and get customers on board for a long-term basis on NG. Got it.

And the second question I had, sir, if I may, is, is there any regulatory push that we are seeing or advocating for more mandatory usage of gas, whether it's an industrial or commercial units, or basically for the C&G segment in the Gujarat region over the next, let's say, year or two? Because that is something that can probably, you know.

Right now, the mandatory push is more on the domestic segment, domestic as well as the commercial, but not on the industrial. Industrial, it is open competition is there from alternate fuels. Propane is coming, so customers have a choice. But yes, in the domestic segment, the mandate is there from the government to switch from LPG to domestic and also in the commercial segment, but not in industry.

The next question comes from the line of Mayank Maheshwari with Morgan Stanley. Please go ahead. Thank you for doing the call, team.

I had a follow-up on the question around sourcing for gas. I think if you look at for the last three to five years, we have gone through three shocks now. And I think we have heard for a couple of times in terms of the management looking to source long-term gas, but it's been a bit of a struggle there. Is it the bottleneck of confidence on demand that's keeping you away on long-term sourcing of gas? And now that you have become an integrated energy company, you can now really go forward and be more aggressive in signing long-term supply of gas. What's kind of keeping it a bit of a back burner in terms of sourcing long-term supply?

So it's not because of no confidence in demand. It is basically whenever, and you talked about the three shocks that we have witnessed, starting with the Russia, Ukraine thing, and then now this Middle East. So whenever we, so we have signed two contracts, you must be aware that we have signed with Qatar, we have signed with Unifer, we have signed with Qatar. And we are already in the market for a few more contracts. So it's only that whenever we, because of the shocks, the timeline for reasonable price gas keeps on shifting. So earlier we before began the new wave of energy supply to hit the market was 26. But now because of this Iran thing which has happened, it has slightly shifted. So right now what we are trying to do is to source our gas starting in 2028. And we are in the market for sourcing these additional volumes. It's not because of the Good morning, everyone. We are not sourcing yet, nor it was because we are separate companies. Obviously, having one company gives us much more confidence. That's true. But we are in the market for sourcing new additional volumes on long-term days.

Okay, so sir, is it what percentage of your volumes maybe in a couple of years you think will be now on long-term sourcing X? Because APM is obviously coming down, but if you can give us a bit of a sense of what percentage of your volumes could kind of come in, which will be on long-term supply versus spot.

So basically, as of today, we around 28 would be like 2 million ton up. 2 million ton energy equivalent on term contract basis. We expect to do close to at least 4 million ton in 2030.

Got it.

It's clear.

And the final question I had was on the power business. Can you give us a bit more details around the power business and how the PLFs have been and what is your kind of a pace at which you think power PLFs could kind of come for you going forward?

Yeah, I think the PLFs have been lower because of the, because these are all gas-based power plants. Practically, they have been operating as close to one percentage. For both the plants. And for the last quarter, if you look at GSEG, the 51 megawatts was around 6 percentage, and for PIPA was close to 1 percentage. So basically, only thing is when there is a shortage of electricity, especially in the summers, basically there is a peak demand which comes from this gas-based cloud plants. Other than that, basically, we don't have much of utilization of the PLF coming from there. Yeah, we are working on the strategy on how to revive it or how to do certain things. We'll be coming back to the investors maybe in a few months down the line of what strategy we are using is to basically turn it around.

Okay, and a lot of other power companies are basically tying it up back of the meter deals in terms of supplying power to data centers. Is that something that's on the thinking process as well?

Yeah, we are looking at multiple options. We are working on it.

Okay, perfect.

Thank you.

Yeah, thank you.

The next question comes from the line of Indra Kumar Gupta with PL Capital. Please go ahead.

Thank you, sir, for the opportunity. My question was just more of an housekeeping. Can you please share the EBITDA for each segment for Q4 and Q1, FN26?

I think we have shared it this time in the investor presentation.

I think the presentation only has Q1.

Oh, you want the previous year?

Yeah, Q4 and Q1, Q1FA26.

Okay, just a minute. Just a minute. Yeah, we'll just leave it. Yeah, the gas trading was around 236 crores, CGD was around 544 crores, ENP was 7, and renewables was close to 14, making a total of around 800 crores.

This was for, sir, Q4 or Q1?

Q1 of 26, yeah, Q1 of 26. And, sir, Q4? Q4, it was 409 for gas trading, CGD 465, ENP 14, and renewables 5, making it 8.93.

Okay, thanks a lot. That's all from my side. Thank you.

The next question comes from the line of Somaya with Aventus Park. Please go ahead. Thanks for the opportunity, sir.

Two questions. So, first of all, you gave the Marley pricing. So, similarly...

Sorry to interrupt you, my voice is muffled. Could you please use your phone on the handset mode in case if you're using hands-free mode. Is it better now?

Is it? Yeah, thanks. Sir, you had given the pricing on Marley. Similarly, you could give the initial pricing on the non-Marley front.

What was it, Q1, and where is it connected? Just one second.

Yes, it goes to 70 rupees for the normal segment.

Sir, this is the Q1 address?

Yes, Q1.

And in Q4, the equivalent number would be?

In Q4, it would be much lower. I think we will get back to you, maybe. You can send us a mail and send the details.

Okay. Sir, second question is on the gas trading and the sourcing. This 12mm machine, if you could just give us a break-up in terms of sourcing, long-term, entry of brand, transport.

So, Long term is 20%, domestic gas is 12.5%, and the rest

is pot, plus 67%. And out of this long term, almost 20% is Henry-up. Sir, also this, the phase

that's outside of the CBD segment, roughly, in normal days, around 5,000 and CMD, if you can give a breakup between fertilizer power and any other end-use segment.

You are talking about the gas trading segment you are talking about for the breakup?

Yeah, the gas trading segment outside of, I mean, apart from CBD, the other volumes that we have, so if you could just give a breakup in terms of income.

Yeah, its fertilizer is close to 1.6. Chemicals is close to 0.24. And steel is close to 0.2. And power is close to 0.2. And other CGT companies also we are selling close to 0.5. And other industrial segments which we sell is also 0.5.

So, our question is on the 3-MMF in the current model volumes. Despite having such a price gap, 78 and 65 rupees, is it because these are the units that don't have a propane infrastructure, or is there any contractual obligation for them to still consume the asset and the number of them?

That is because these companies, they don't have infrastructure for propane. Either because they are smaller in size or because they don't have the required space in their premises to install cocaine facilities.

Does that mean there are no further propane additions? So even if there is a meaningful pricing gap, so 2, 2.5 MMCMD of volume can still go to. Is that the right way to look at it?

I think so. I think 1.8 to 2 million would be a fair number to assume because in the past it had reduced to 1.8 MMCMD around that number.

The next question comes from the line of Beneeth Banka with Nomura Holdings. Please go ahead.

You have a transfer opportunity again. So, sir, this bottom of 1.8 MSTMD in the morgue, which you think could be something which will hold for you.

Are these contracts on a longer term or they are also one month basis?

They are one month contracts.

Okay, and so basically because of no availability of infrastructure to probably use propane, they'll be sticking around with natural gas.

Yes.

Okay. Okay, second question is on when is the listing for GTSG scale transmission? I think it was supposed to be listed by end of July and there is mid of August. Any timeline you can share?

We are interested in the closely coordinating with BSC, NSC, and Serbia on this. Since it will require exemption for listing without going for public issue route, it is likely to take slightly longer time. We expect this to happen somewhere towards early September.

Okay, sir. Thank you. The next question comes from the line of Deepak Malhotra with CapGro Capital Advisors LLP. Please go ahead.

Hello. Thank you for taking my question. I have two questions. One on Morbi, but that has been answered just now. The second question is regarding the present cash on the balance sheet. You already mentioned about 1,000 crore of CapEx. So, could you kindly highlight what is the current cash on the balance sheet and how do you plan to utilize it going forward? Thank you so much.

Yeah, we have a cash of around 7,200 crores. So, we have a capex plan of around 1,000 crores for the CGD business, and with respect to the rest of the cash to be utilized, basically, we are working on certain programs with respect to the strengthening of the present business with respect to the CNG and the pipelines, as well as we are also looking at the diversification strategy in the energy business. So, in a concrete plan, we will be coming in maybe in the Q3, by Q3, we will be having a concrete plan of how that deployment of the cash will happen.

Since you mentioned that the gas trading business doesn't really require, you know, any capex as such. So, the thousand crore capex which you already outlined, I mean, does it include your proposed capex on the propane infrastructure which you are trying to set up?

No, it doesn't include that because that's in an early stage of DRHP. You have to have the detailed project report in place and then basically the capex will happen in the next two years. So that's a long-term plan.

So, we will get to know the position only over the next two quarters, you know, once you have detailed reports.

Yes, yeah, absolutely.

Thank you.

The next question comes from the line of Amit Murarka with Access Capital. Please go ahead.

Yeah, thanks for the opportunity again. In this quarter, the CGD EBITDA margin has come down. Is it largely because of Mordi or is there any other reason in that number?

I think it's around 5.18, and because we have a bigger volume now to be divided, so that's the reason it's 5.18. We have given a guidance of 5.5 to 6.5. We still stick to that guidance.

Right. No, but in Q1, it was below that guidance. So was it because, let's say, Morvi margins were a bit lower than the portfolio margins? Was that the reason or was there any other reason?

We can see the CGD margins. See, we look at a portfolio. We don't look at each segment when you look at the EBITDA margin of the segment.

Okay. Okay. So, five and a half to six and a half remains the range.

Okay. Sure. Yeah. That's all.

The next question comes from the line of Pushpendu Chand, an individual investor. Please go ahead.

Yeah. Am I audible? Yeah. Yeah, so my question is regarding the dividend policy. Now we have merged three companies together and we have sufficient cash balance of 7,000 CR. And also we are generating regular cash from our business. So will there be an easy look on the dividend policy of the company since the merger is now completed?

I think we have been following the government of Gujarat's guidelines with respect to dividends, which has been announced last quarter also. I think we have given a dividend of close to 800 crores, 835 crores, and with respect to the rest of the cash to be utilized, as we have told earlier also, basically, we are looking at proper investment with better returns to the investors itself. We are planning those things, and basically, by the quarter three, we will be coming up to the investors, which all areas will be investing.

Okay. So, the next question is regarding the earnings predictability. So, for this financial year 2027, what would be our revenue projection and margin projection if you can share something on this?

Margin projection, I think, basically, as I told you earlier, basically, for the gas trading business, we have projecting around 1,100 to 1,200 pros of margins. And with respect to the CGT business, also, basically, we'll be going with the same numbers which we have there earlier. Except the only thing is why Q2, why the Q2 number, Q2 will be in a better position to tell you the numbers because we still have the volatility of the Middle East crisis which is going on.

Okay, all right. Thank you. These were the only two questions from my friend. Thank you. The next question comes from the line of Vipul Kumar Shah with Sumangal Investments. Please go ahead.

Is it possible to share any financials of the GTL which is yet to be listed?

No, that's a separate company now, sir.

Yeah, but can you give any idea regarding the performance?

GTL results are available on their website. You can access their website and get a hang of their performance. They've been doing results on quarter-on-quarter basis. Those results are available.

And, sir, what is our gross block as on 30th June? It's around 12,000, close to. 12,000, close.

Yeah, close to 12,000.

Okay, thank you, sir. The next question comes from the line of Amit Murarka with Access Capital. Please go ahead.

Thanks for the opportunity again. So, you had mentioned the last call that there are some refunds that you will be claiming from the department for like FY26. For the merger, unabsorbed losses, tax adjustment, basically. So where are we in that process, and by when do you expect the refund to come in?

I think presently we are in the process of filing the revised returns, and it will take time, in the sense, at least a year to get the refunds, because we need to refile the accounts returns for the 24, 25, 25, 26. The 26 is the reverse one, but the 24-25, you have to file the revised returns, which you have the process of filing it.

Right. And the expected quantum is about, what, 900 odd calls, if I'm right?

Yeah, you're right.

Okay, sure. And then secondly, on the transfer, internal transfer between gas trading to CGD, Are we still following the old methodology of the pricing, how it used to happen when they were two separate entities, or has there been any change made to that in Q1 now?

No, that was between two companies. Internally, we have the flexibility of changing it.

Sure. So, is it now on a cost basis or how is it now being done?

I think that is reflected in the results also.

No, the CGD margin is still low, so just in order to understand that.

Yeah, I think, see, there is a section which is making the segment which is there. Basically, not on an arm's length. See, the problem is when you have two companies, you have to run the arm's length concept which is there, which is not typically applicable when you are having the same business internally.

Right.

So, you have the flexibility to basically the sourcing can be different, the pricing can be different.

So, other way to, I mean, maybe understand this is the external volume of 3.32 MMS CMD that you made in gas trading. So, the EBIT, which is reported in gas trading, is it only for this 3.32 MMS CMD, or, I mean, how, or would it also largely be for the transfer to the CGT?

It's for the entire thing. The segment, if somebody is sourcing the entire thing, basically the segment is for the entire thing. That's why we clearly told in the beginning. Of the entire volume of 12.22, which the trading segment is, 8.9 was transferred to the CGD segment.

Sure, so there is still a markup basically on the CGD transfer. Yeah, there is still a markup. Okay, okay, that's it. Thank you.

The next question comes from the line of Nitin Tiwari with Philip Capital India. Please go ahead.

Yeah, thanks for the opportunity. Again, I suppose you already partially answered the question, but I still asked. So, the 1100 crore guidance that you've given, that's also on the entire trading volume, right? It's not on the external sales. That's the right understanding?

Yeah, that's the right understanding.

All right. Thank you.

A reminder to all participants, you may press star and want to ask a question.

Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Sandeep Dave for the closing remarks.

Thank you all for spending your valuable time and attending the call. We look forward to interact with you during our Q2 number somewhere towards middle of November. Thank you all.

Thank you, sir. Ladies and gentlemen, on behalf of Gujarat Energy Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.