Indraprastha Gas Q3 Results Review: Systematix Maintains 'Buy' On The Stock, Lowers Target Price — Here's Why

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Systematix Research Report

Indraprastha Gas Ltd. reported in-line Ebitda while net profit was propelled by higher-than-expected other income. Higher gas cost owing to the lower administered price mechanism allocation resulted in a sharp drop in Ebitda.

On a volume front, total volume rose 7.4% YoY to 9.1 million metric standard cubic metre per day led by 5.9% increase in CNG volume (-1.1% QoQ) and 11.8%/7.5% YoY/QoQ increase in PNG volume.

Both Domestic and I/C PNG sales rose sharply 16.8%/14.4% YoY (11.3%/8.8% QoQ) to 0.72 mmscmd/1.19 mmscmd. Gas cost increased 7.6% YoY (7.7% QoQ) to Rs 35.1/standard cubic metre resulting in Ebitda/scm declining to Rs 4.1, down 40.6% YoY/-33.5% QoQ (in-line with our estimate).

Net revenue/Ebitda came in at Rs 37.4 billion/Rs 3.6 billion declined 35.5% YoY. Other income of Rs 1.2 billion helped PAT but still was down 27.1% YoY/-33.7% QoQ to Rs 2.9 billion.

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