Systematix forecast the shortfall in administered price mechanism would be replaced by the NWG. However, the Indraprastha Gas's complete dependence on contractual volume provide the long term visibility. Only new EV policy and higher penetration of electric vehicle in buses and three-wheeler raises concern on nearly ~30% of volume. However, huge difference with petrol/diesel still enable company to go ahead with more price hikes.
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Systematix Report
Indraprastha Gas Ltd. reported better-than-expected results with revenue/Ebitda/PAT beating estimates by 2.5%/15.3%/2.3%, supported by strong CNG and PNG volume growth. Total volumes rose 5.2% YoY to 9.2 mmscmd. PNG volumes grew 5% YoY, while CNG rose 5.2% YoY but remained flat QoQ.
Higher gas costs due to lower APM allocation impacted margins, though sequential Ebitda improved on higher customer pricing.
Ebitda margin expanded 290 bps QoQ to 12.6%. PAT came in at Rs 2.5 billion, down 8.8% YoY but up 22.2% QoQ.
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