Snacks galore as GSPL pledges Rs1000cr CAPEX

Vol 21, PW 1 (05 Oct 17) Midstream & Downstream
     

Gujarat State Petronet is planning Rs1000cr ($150m) CAPEX in 2017-18 and if you have any doubt about its fiscal strength look at the extravagant refreshments at the 19th AGM on September 28 in Gandhinagar.

Unlike sister company Gujarat Gas which offered only ice-cream scoops to shareholders Gujarat Petronet exceeded expectations by serving a range of Gujarati snacks, sweets, tea, coffee - plus ice-cream! Before shareholders sat down to sample the feast, chairman MM Srivastava announced the welcome news that the new CAPEX would come from its own pocket. "Only if needed will we take debt," he said.

"There are no plans to dilute equity." Srivastava was responding to a query from shareholder Narendra Porwal on GSPL's expansion targets in the next five years. Joint managing director T.

Natarajan also clarified to Porwal that "business is growing at a healthy rate." Srivastava announced encouraging numbers to prove the point. GSPL's income in fiscal 2016-17, he said, stood at Rs1115.75cr ($168m) compared to Rs1057.56cr ($159m) a year earlier while profit before tax was Rs737.78cr ($111m) against Rs668.83cr.

Gujarat Petronet's 'net worth', he added, had increased from Rs4069.18cr ($612m) to Rs4495.97cr ($676m). Earnings per share worked out to Rs8.81 ($0.13) compared to Rs7.91 ($0.12).

Srivastava also boasted that 2454-km gas grid had reached 25 of 33 Gujarat districts but admitted only a marginal rise in daily gas transmitted to 24.85m cm/d in 2016-17 from 24.50m cm/d last year.

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