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| India Infoline Research Team / 09:30 , May 15, 2012 |
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- Indraprastha Gas Ltd (IGL) reported net sales of Rs7,212mn a growth of 41.2% yoy and 8.8% qoq. The growth was driven by a volume growth of 14.3% yoy for CNG and 32% yoy for PNG (lowest since Q3 FY10). CNG realizations were higher by 18.9% yoy, while PNG realizations surged 22.2% yoy on the back of price hike implemented by the company.
- OPM was at 23.5%, a fall of 336bps yoy but an increase of 81bps qoq. Gross margins/unit was higher by 6.2% yoy and 6.7% qoq due to the increase in realizations. Raw material cost as a percentage of sales was higher by 426bps yoy as the contribution of high-cost R-LNG increased in the raw material basket.
- Depreciation and interest costs were higher by 33.7% yoy and 93.4% yoy respectively owing to the capex program being executed by the company, large portion of which is being financed through debt.
- While the volume growth might remain strong given the steep discount between pricing of petrol and CNG, the main concern floating around the stock has been the restrictions on marketing margins implemented by PNGRB. We have kept our estimates and recommendation under review for the final verdict on the issue.
Results table
(Rs m)
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Q4 FY12
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Q4 FY11
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% yoy
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Q3 FY12
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% qoq
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Net sales
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7,212
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5,108
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41.2
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6,631
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8.8
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Material costs
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(4,577)
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(3,024)
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51.4
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(4,230)
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8.2
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Personnel costs
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(120)
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(90)
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33.4
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(107)
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12.0
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Other overheads
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(821)
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(623)
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31.8
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(791)
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3.8
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Operating profit
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1,695
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1,372
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23.5
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1,504
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12.6
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OPM (%)
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23.5
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26.9
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(336) bps
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22.7
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81 bps
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Depreciation
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(397)
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(297)
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33.7
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(368)
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8.0
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Interest
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(136)
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(70)
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93.4
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(135)
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0.5
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Other income
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18
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8
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127.7
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15
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21.2
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PBT
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1,179
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1,012
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16.5
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1,016
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16.1
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Tax
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(372)
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(320)
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15.9
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(324)
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14.5
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Effective tax rate (%)
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31.5
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31.7
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31.9
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Adjusted PAT
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808
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692
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16.8
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692
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16.8
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Adj. PAT margin (%)
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11.2
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13.5
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(234) bps
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10.4
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77 bps
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Ann. EPS (Rs)
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23.1
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19.8
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16.8
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19.8
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16.8
| Source: Company, India Infoline Research
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