Indraprastha Gas Ltd's Q2FY19 standalone net profit rises 10.9% yoy to Rs187.28cr : In-line with Estimates

The company’s standalone revenue stood at Rs1,421.50cr, up 27.84% yoy.

Nov 05, 2018 03:11 IST India Infoline Research Team

Indraprastha Gas Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,421.50 27.8
EBITDA 308.01 9.4
EBITDA Margin (%) 21.7 [365]
Net Profit  187.28 10.9
***EBITDA margin change is bps

Indraprastha Gas Ltd reported Q2FY19 results almost in-line with the estimates. Net revenue grew by 27.8% yoy to Rs1,421.5cr against ~Rs1,112cr in Q2FY18, in-line with the estimate of Rs1,379cr. EBITDA for the quarter grew by 9.4% yoy to Rs308cr against Rs281.6cr. EBITDA margin declined by 365bps yoy to 21.7%. Net profit for the quarter grew by 10.9% yoy to Rs187.28cr against Rs168.9cr in corresponding quarter last year, almost in-line with the estimate of Rs193cr.

• CNG sales volume grew by ~13% yoy to 290 mn kg in Q2FY19 against 257 mn kg in Q2FY18. Higher conversion of taxi, private cars, LCVs and trucks led to yoy growth in CNG sales.
• Industrial/Commercial sales volume grew by ~24% yoy to 64 mmscm in Q2FY19 against 51 mmscm.
• Domestic sales volume grew ~3% yoy to 27 mmscm against 26 mmscm.
• Total PNG sales volumes increased by 14% yoy over Q2FY18.
• Product wise, CNG recorded sales of Rs1,174cr, registering a growth of 24% yoy and PNG recorded sales of Rs390cr registering a growth of 40% yoy over previous year.
• IGL has 50% stake in CUGL and MNGL each. The combined profit of both the entities is ~Rs47cr and out of this IGL's share is Rs23.5cr.
• The growth in profits were driven by strong volume growth, which were partly offset by decline in EBITDA/scm.
• The EBITDA/scm declined 4% yoy to Rs6.2 in 2QFY19 on account of sharp increase in gas cost leading to some dilution in margins. However, the blended margins are still above the management’s guidance on sustained margins of Rs6/scm.
• The recent Supreme Court order directs IGL to take over CGD operations in Gurugram (including Manesar) in NCR from Haryana CGD Ltd. (HCGDL). This is a key long term positive for IGL

Technical View:

Indraprastha Gas Ltd is currently trading at Rs. 284, up by 2 points or 0.71% from its previous closing of Rs. 282 on the BSE.
The scrip opened at Rs. 288.90 and has touched a high and low of Rs. 288.90 and Rs. 278.35 respectively. So far 38,22,872 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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