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India Equity Research Reports, IPO and Stock News
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S t e a d y p e r f o r m a n c e …
Indraprastha Gas (IGL) declared its Q1FY12 results with revenues of | 537.4
crore, EBITDA of | 158.3 crore and PAT of | 80.1 crore. The profitability was
marginally higher than our estimates mainly on account of lower than
estimated raw material costs. Increased sales volumes in the CNG segment
and natural gas sales volume to industrial, Haryana City Gas and Adani for
Faridabad contributed to the YoY increase in volumes for Q1FY12 to 281.7
mmscm (3.1 mmscmd). In Q1FY12, blended sales prices were increased by
24.8% YoY to | 21.1 per scm, mainly to pass on increased raw material
costs. We expect IGL’s volumes to increase to 1200 mmscm and 1382
mmscm in FY12E and FY13E, respectively. We recommend a HOLD rating
on the stock with a price target of | 402.
ƒ Increase of 27.2% YoY in gas sales volume
IGL reported a 27.2% increase in gas sales volume from 221.5
mmscm in Q1FY11 to 281.7 mmscm in Q1FY12. The CNG and PNG
gas sales volume increased by 16.6% and 82.5% YoY to 216.9
mmscm and 64.8 mmscm, respectively in Q1FY12. We expect total
sales volume to increase from 988.2 mmscm in FY11 to 1200 mmscm
and 1382 mmscm in FY12E and FY13E, respectively. We expect 14%
and 35.9% CAGR in CNG and PNG sales volumes, respectively, over
the next two years.
ƒ Realisations improve on both CNG and PNG price hikes
The realisations improved YoY on the back of price increases taken in
both the CNG and PNG segment. The CNG and PNG realisations stood
at | 22.2 per scm (| 29.1 per kg) and | 19.6 per scm, respectively, for
Q1FY12. The impact of a price hike in the CNG segment to | 29.8 per
kg would be visible from the current quarter.
V a l u a t i o n
We expect IGL to report steady growth on account of higher capex,
increasing pipeline network and higher conversion to CNG vehicles. We
have valued the stock based on the DCF methodology with a price target of
| 402 (WACC – 11.7%, terminal growth – 3%).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t e a d y p e r f o r m a n c e …
Indraprastha Gas (IGL) declared its Q1FY12 results with revenues of | 537.4
crore, EBITDA of | 158.3 crore and PAT of | 80.1 crore. The profitability was
marginally higher than our estimates mainly on account of lower than
estimated raw material costs. Increased sales volumes in the CNG segment
and natural gas sales volume to industrial, Haryana City Gas and Adani for
Faridabad contributed to the YoY increase in volumes for Q1FY12 to 281.7
mmscm (3.1 mmscmd). In Q1FY12, blended sales prices were increased by
24.8% YoY to | 21.1 per scm, mainly to pass on increased raw material
costs. We expect IGL’s volumes to increase to 1200 mmscm and 1382
mmscm in FY12E and FY13E, respectively. We recommend a HOLD rating
on the stock with a price target of | 402.
ƒ Increase of 27.2% YoY in gas sales volume
IGL reported a 27.2% increase in gas sales volume from 221.5
mmscm in Q1FY11 to 281.7 mmscm in Q1FY12. The CNG and PNG
gas sales volume increased by 16.6% and 82.5% YoY to 216.9
mmscm and 64.8 mmscm, respectively in Q1FY12. We expect total
sales volume to increase from 988.2 mmscm in FY11 to 1200 mmscm
and 1382 mmscm in FY12E and FY13E, respectively. We expect 14%
and 35.9% CAGR in CNG and PNG sales volumes, respectively, over
the next two years.
ƒ Realisations improve on both CNG and PNG price hikes
The realisations improved YoY on the back of price increases taken in
both the CNG and PNG segment. The CNG and PNG realisations stood
at | 22.2 per scm (| 29.1 per kg) and | 19.6 per scm, respectively, for
Q1FY12. The impact of a price hike in the CNG segment to | 29.8 per
kg would be visible from the current quarter.
V a l u a t i o n
We expect IGL to report steady growth on account of higher capex,
increasing pipeline network and higher conversion to CNG vehicles. We
have valued the stock based on the DCF methodology with a price target of
| 402 (WACC – 11.7%, terminal growth – 3%).
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