MOSL: INDRAPRASTHA GAS (Neutral)-Strong volume growth continues-Lower LNG prices support margins
INDRAPRASTHA GAS: Strong volume growth continues; Lower LNG prices support margins
(IGL IN, Mkt Cap USD3.1b, CMP INR316, TP INR327, 3% Upside, Neutral)
- High volume growth combined with expansion in EBITDA/scm, resulted in IGL's EBITDA increasing 21% YoY to INR3.6b (v/s est. INR3.4b). Much higher depreciation and interest cost combined with lower-than-expected other income resulted in PAT growing 24% YoY to INR2.2b (in-line).
- Strong CNG/PNG volume growth: Total volumes were at 6.3mmscmd in 1QFY20 v/s 5.6mmscmd in 1QFY19.
- CNG sales volumes were up 13% YoY to 4.7mmscmd in the quarter, while PNG sales grew 12% YoY to 1.6mmscmd.
- PNG domestic grew 15% YoY and industrial/commercial increased 17% YoY.
Indraprastha Gas Limited (IGL) is an India-based city gas distribution company. The Company's business consists of sale of natural gas. The Company is focused on industrial and commercial business. The Company supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to the domestic, industrial and commercial sectors in Delhi and the National Capital Region (NCR). The Company offers PNG, which includes methane-CH4, as well as other hydrocarbons. The Company offers CNG, a gaseous fuel that includes a mixture of hydrocarbons, primarily methane. The Company has approximately 340 CNG stations spread all around the National Capital Territory of Delhi and in NCR. The Company provides PNG connections to over 6.36 lakhs domestic households, and approximately 2,630 commercial and industrial customers.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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