Indraprastha Gas Q4 Results Review - Long-Term Headwinds Persist: Motilal Oswal

"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. .Motilal Oswal Report.Indraprastha Gas Ltd. reported in-line Ebitda of Rs 4.7 billion in Q4 FY23, with Ebitda/standard cubic metre at Rs 6.3 (down 13% YoY/up 9% QoQ). Volumes increased 7% YoY to 8.3 million metric standard cubic metre per day. The management expects volumes to reach 9 mmscmd in FY24, driven primarily by growth from new geographical areas. Compressed natural gas conversions are also expected to increase, driven by the stability in CNG prices and the introduction of new CNG vehicle models by original equipment manufacturers. IGL's management highlighted that buses account for ~20% of CNG volumes (Delhi Transport Corporation /Delhi Integrated Multi-Modal Transit System buses accounting for half of it), while taxis and three wheelers account for 30% of volumes. Hence, aggressive electric vehicle policies by the Delhi government may challenge volume growth in the medium-long term. Although IGL has guided for an Ebitda/scm of Rs 7-8, we model a lower Ebitda/scm of ~Rs 6 in our base case, considering likely margin pressure due to high proportion of industrial component in incremental volumes..Click on the attachment to read the full report:.Indraprastha Gas Q4 Results Review - Strong Margin Performance: HDFC Securities.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 Q4 Results Review - Long-Term Headwinds Persist: Motilal Oswal

Ebitda in line; beat on profit after tax.

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