Indraprastha Gas Ltd Higher input cost drags down profitability :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Indraprastha Gas Ltd

Higher input cost drags down profitability

ACCUMULATE

CMP: Rs 396                                       Target Price: Rs 425

---

n     Results were marginally below our estimates with revenue at Rs.5.9bn growth of 33.7% YoY and PAT at Rs.0.8bn, growth of 16.5% YoY

n     Volume increased by 25.1% YoY to 307mmscm in Q2 FY12. CNG and PNG volumes increased by 14.4% to 177.4mnkg and 62.2% to 68.2mmscm respectively, YoY

n     Blended unit realisation stood at Rs.19.5/scm, growth of 6.8% YoY, mainly due to hike in prices of CNG segment from Rs.29.8/Kg to Rs.30/Kg  

n     Given its monopoly in NCR region, easing of pricing pressure and expected volume growth in NCR and Ghaziabad, maintain ACCUMULATE with PT of Rs.425