Shares of Gujarat Gas Company soared 6% to Rs 492.55 on the BSE in intraday trade on Thursday after the company reported a notable recovery in its total gas sales in the January-March quarter (Q4FY23). The board of India’s largest city gas distribution company has also recommended a dividend of Rs 6.65 per share for FY22-23.

The company sold 8.86 mmscmd (million metric standard cubic meters per day) compared to the 7.29 mmscmd registered in the previous quarter, an increase of 22%. In a statement, Gujarat Gas said this was due to a sharp correction in spot liquefied natural gas (LNG) prices, which the company decided to pass on to industrial customers to improve their competitiveness.

The company said that the compressed natural gas (CNG) category continues to enjoy strong momentum as consumers benefit from favourable government policies announced to protect the interests of CNG and residential piped natural gas (PNG) users. It added that the central government implemented the APM gas policy, capping the price of APM gas at $6.5 Immbtu, while state governments reduced VAT from 15% to 5%, making CNG/PNG more affordable.

Meanwhile, in Q4FY23, the company’s revenue rose 6.6% QoQ to Rs 3,929 crore. The realized price was Rs 49.3/scm, down Rs 5.7/scm QoQ due to the company’s price cut. EBITDA for the quarter was Rs 560.3 crore, down 3.8%. The reported profit after tax was flat QoQ at Rs 369.2 crore.