Higher realisations drive IGL’s strong performance
IGL’s net profit of Rs992mn was higher than our estimate of RS889mn on account of higher realizations during the quarter. The company took a price hike in July. Net revenue for the quarter increased by 12.4% sequentially to Rs8.5bn driven by 5% qoq volume growth and 7% qoq increase in realisations. CNG volumes witnessed an increase of 6.1% qoq to 194mnkg while realisations increased by 8% qoq to Rs37.85/kg. PNG volumes and realisations for the quarter increased by 1.8% and 5.2% respectively. Gas costs for the quarter increased at a slower pace of 6.2% qoq to Rs16.11/scm. Consequently, IGL reported its highest ever gross margin/scm of Rs9.08. EBITDA/scm for the quarter stood at Rs6.07 (yoy +18.7% qoq +9.4%).
We maintain our BUY rating on the stock with a target price of Rs319. At the CMP, the stock is trading at 11.5x and 5.9x FY14e EPS and EBITDA respectively.
Actual v/s Estimates
Y/E, Mar (Rs. m)
|
Q2FY13
|
Q1FY13
|
qoq (%)
|
Q2FY12
|
yoy (%)
|
LKP Estimates
|
Deviation (%/bps)
|
Revenue
|
8,546
|
7,602
|
12.4%
|
5,969
|
43.2%
|
8,581
|
-0.4%
|
EBITDA
|
2,060
|
1,793
|
14.9%
|
1,574
|
30.9%
|
1,848
|
11.5%
|
EBITDA (%)
|
24.1%
|
23.6%
|
53 bps
|
26.4%
|
-226 bps
|
21.5%
|
257 bps
|
PAT
|
992
|
850
|
16.7%
|
772
|
28.5%
|
889
|
11.7%
|
LKP Research
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