Indraprastha Gas (Q4 FY14)

India Infoline News Service | Mumbai |

Indraprastha Gas Ltd (IGL) reported net sales of Rs9,681mn (1.6% ahead of our estimates) for Q4 FY14.

CMP Rs313, Target Rs365, Upside 16.6% 
  • Net sales at Rs9.7bn was lower than estimates owing to weaker than expected CNG volumes

  • CNG volumes at 191mn kgs were higher by 2.3% yoy but were down 0.9% qoq. PNG volumes were at 91.3scm a growth of 3.7% yoy and 2.3% qoq

  • Gross margins/unit declined by 5.1% yoy and 11.2% qoq to Rs10.26/unit. This was lower than our expectations owing to lower than estimated allocation of APM gas

  • OPM at 19.9% came in lower than our expectations and was lower by 116bps yoy but improved by 111bps qoq

  • We recommend BUY with a price target of Rs365

Result table
(Rs m)
Q4 FY14
Q4 FY13
% yoy
Q3 FY14
% qoq
Net sales
9,681
8,824
9.7
10,414
(7.0)
Material costs
(6,780)
(5,850)
15.9
(7,152)
(5.2)
Personnel costs
(145)
(178)
(18.7)
(156)
(7.4)
Other overheads
(834)
(941)
(11.4)
(1,154)
(27.8)
Operating profit
1,922
1,855
3.6
1,952
(1.5)
OPM (%)
19.9
21.0
(116) bps
18.7
111 bps
Depreciation
(558)
(489)
14.1
(558)
(0.1)
Interest
(96)
(125)
(23.1)
(119)
(19.0)
Other income
64
31
105.6
70
(8.4)
PBT
1,332
1,272
4.7
1,345
(0.9)
Tax
(427)
(437)
(2.2)
(450)
(5.0)
Effective tax rate (%)
32.1
34.3
33.5
Adjusted PAT
905
835
8.4
895
1.2
Adj. PAT margin (%)
9.3
9.5
(12) bps
8.6
76 bps
Ann. EPS (Rs)
25.9
23.9
8.4
25.6
1.2
Source: Company, India Infoline Research

Revenues better than expected

Indraprastha Gas Ltd (IGL) reported net sales of Rs9,681mn (1.6% ahead of our estimates) for Q4 FY14. The revenues were up by a 9.7% yoy but were down 7% qoq. CNG volumes at 191mn kgs were higher by 2.3% yoy but were down 0.9% qoq. PNG volumes were at 91.3scm a growth of 3.7% yoy and 2.3% qoq. CNG realizations were at Rs40.9/kg a growth of 4.1% yoy but a fall of 10% qoq owing to price cuts implemented in the month of February 2014. PNG prices were higher by 14% yoy and 0.9% qoq. While CNG volumes were lower than expectations realizations were higher than estimates. PNG volumes were better than projected while realizations were in line with estimates.

BSE 319.40 [2.50] ([0.78]%)
NSE 319.50 [2.60] ([0.81]%)

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