Operating margins fell 270 bps to 24.9% during quarter ended December 2019 as cost of material consumed fell 60 bps to 60.9% as a percentage of adjusted net sales, employee benefit expenses decreased 60 bps to 2% and other expenses fell 60 bps to 6.5%. Gas transmission expenses rose 450 bps to 5.7%.

Operating profit increased 11% to Rs 753.78 crore. Other income increased 10% to Rs 23.49 crore leading to 11% increase in PBDIT to Rs 777.27 crore. Interest cost fell 18% to Rs 87.63 crore. Depreciation rose 11% to Rs 129.06 crore. As a result PBT before EO was up 18% at Rs 560.58 crore. The company had nil EO items compared to EO expense of Rs 17.87 crore in Q3FY19. Exceptional item pertains to balance provision of stamp duty by group company Gujarat Gas Limited (GGL). GGL had earlier provided stamp duty of Rs. 25 crores in FY 2015-16. However as per the order of the Chief Controlling Revenue Authority (CCRA) the stamp duty be levided is Rs. 42.87 mores with regards to the appeal filed against the order of Collector & Additional Superintendent of Stamps for adjudication of stamp duty persuant to Composite Scheme of Amalgamation and Arrangement approved by Honourable Gujarat High Court. PBT after EO rose 22% to Rs 560.58 crore.

Considering 580 bps fall in effective rate of taxes to 25.6% GSPL reported a 35% increase in bottom-line to Rs 417.31 crore. Further considering share of profit of associates and JV and minority interest net profit rose 29% to Rs 318.32 crore.

For 9MFY20 GSPL reported a 29% increase in consolidated income from operations to Rs 9091.98 crore compared to corresponding previous year period. Operating margins fell 90 bps to 26.8% leading to 25% increase in operating profit to Rs 2436.9 crore. Other income decreased 26% to Rs 82.79 crore leading to 22% increase in PBDIT to Rs 2519.69 crore. Interest cost fell 11% to Rs 289.26 crore. Depreciation was up 11% to Rs 385.47 crore.

As a result PBT before EO was up 32% at Rs 1844.96 crore. The company had EO expenses of nil EO items compared to Rs 17.87 crore in the corresponding previous year period. PBT after EO rose 34% to Rs 1844.96 crore.

Considering 3050 bps fall in effective rate of taxes to 3.2% GSPL reported a 97% increase in bottom line to Rs 1786.8 crore. Further considering share of profit of associates and JV and minority interest net profit rose 71% to Rs 1346.29 crore.

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