Indraprastha Gas – Results Powered by CNG

Indraprastha Gas Ltd (IGL) reported 1Q operating results, with revenues of Rs 1.9bn and net profit up 13%q/q to Rs 437Mn. Lower gas margins due to higher costs were offset by higher-than expected volumes (CNG growth at 17% y/y). CNG volume rose by 17% y/y compared to ~ 11% y/y growth over the past six quarters.

Private car conversions during the quarter were over 5,500/month due to higher fuel prices which buoyed CNG volumes. The Petroleum Ministry, Delhi government has requested IGL to open 50 more stations in two years. The Petroleum Ministry also expressed its full support in letting IGL expand into the neighbouring areas of UP and Haryana.

IGL is expected to report a full year EPS of Rs 14-15 for FY09.