Indraprastha Gas - PNGRB Clarifies Authorisation For Noida, Faridabad, Gurugram: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.In a notification posted by Indraprastha Gas Ltd. on April 25, 2023, the regulator Petroleum and Natural Gas Regulatory Board has clarified long-pending issues pertaining to formal city gas distribution authorisation for the areas of Greater Noida, Faridabad and Gurugram. We note IGL already supplies gas (0.5 million metric standard cubic metre per day) to Gurugram and Faridabad for a nominal service fee of Rs 2/standard cubic metre, which implies an Ebitda of only Rs 350 million – while for balance volumes, IGL’s Ebitda margin is at a healthy ~Rs 7.7/scm (FY22 reported earnings). We note greater Noida region is already a part of IGL’s normal business operations, and this gets formally recognised in PNGRB’s ruling. IGL has repeatedly stated that the development of infra and penetration in all three geographical areas has lagged potential by a wide margin, and that volume potential from Faridabad and Gurugram is material. However, the regulator has chosen to bifurcate the areas as per its assessment of infra work already under taken and regulatory eligibility..Click on the attachment to read the full report:.SAIL - Robust Domestic Demand To Drive Growth: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indraprastha Gas - PNGRB Clarifies Authorisation For Noida, Faridabad, Gurugram: ICICI Securities

The loss of the high-potential area of Gurugram is a negative for IGL.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP