Comments
Emkay Global
Indraprastha Gas
Target: ₹635
CMP: ₹537
Indraprastha Gas Ltd reported Q1-FY22 standalone EBITDA/PAT of ₹381/244 crore, down 23 per cent/26 per cent q-o-q (up 4.6x/7.7x y-o-y) and 7 per cent/9 per cent below our estimates primarily due to 6 per cent EBITDA/scm miss. Margin miss was on the back of higher unit opex. ETR was also slightly higher at 26 per cent.
Gas sales volumes rose 96 per cent y-o-y/fell 22 per cent q-o-q to 5.32 mmscmd. CNG/PNG volumes rose 126 per cent/51 per cent y-o-y but fell 25 per cent/15 per cent q-o-q. I/C PNG volume rose 81 per cent y-o-y/fell 18 per cent q-o-q, while trading was up 2x y-o-y/down 20 per cent q-o-q. Domestic volumes were up 3 per cent y-o-y/down 4 per cent q-o-q.
Net realisation was up 3 per cent q-o-q, while unit gas costs remained flat. Hence, the gross margin expanded by 5 per cent q-o-q to Rs 14.4/scm (in line). However, opex/scm was up 16 per cent q-o-q (10 per cent above est.), leading to EBITDA/scm of Rs 7.9, down 2 per cent q-o-q (up 133 per cent y-o-y). We raise our FY22-24 revenues by 5-17 per cent, building in higher gas prices, but keep EPS largely unchanged as a slight cut in margins is offset by higher volumes. We increase the TP to ₹635 from ₹610 as we roll over to September 2022 from March 2022.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.