- 27 Jan 2023
- ICICIdirect Research
Indraprastha Gas reports Q3 results
News: Revenue increased 67.5%YoY and 4.4% QoQ to Rs 3710.8 crore. Revenue growth YoY was driven by realisation as well as sales volume growth. Realisation came in at Rs 54.5/scm, up Rs 2/scm QoQ. Sales volume was 8.12 mmscmd, up 6% YoY and flattish QoQ. Gross margins declined 4.5% YoY and 11% QoQ to Rs 11.1/scm as higher realisation was offset by rise in gas sourcing costs. EBITDA stood at Rs 428.5 crore, down 8.8% YoY (down 18.8% QoQ).EBITDA/scm was Rs 5.7/scm, down Rs 1/scm YoY and down Rs 1.4/scm QoQ. On the profitability front, PAT was down 9.8% YoY (down 33% QoQ) to Rs 278.3 crore
Views: IGL increased CNG and domestic PNG prices in Q3FY23 on account of the revision in domestic gas prices October 1 onwards. However, these price hikes were not sufficient enough to pass on the increase in gas costs which impacted their margins. Going foward, the Kirit Parikh committee has suggested a price band of US$4-6.5/mmbtu for APM gas. Spot LNG prices have softened to ~US$26/mmbtu in Q4-QTD from the elevated levels of ~US$31/mmbtu seen in Q3 and the decline in crude prices is likely to bring down the long term gas prices too. All these developments would reduce the sourcing cost for CGDs and improve their margins and also likely bring down CNG and PNG prices. Volume growth coupled with steady margins will be key monitorable in the near term.
Impact: Neutral