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HDFC Securities: Indraprastha Gas - Volume-Led Q1 Performance

Indraprastha Gas’ volumes fell in the June quarter due to weak CNG demand amid the coronavirus lockdown, HDFC Securities says.

Pipes carry natural gas at the Henry Hub pipeline facility owned and operated by Sabine Pipe Line LLC. (Photographer: Derick E. Hingle/Bloomberg)
Pipes carry natural gas at the Henry Hub pipeline facility owned and operated by Sabine Pipe Line LLC. (Photographer: Derick E. Hingle/Bloomberg)

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HDFC Securities Report

Indraprastha Gas Ltd.'s Q1 FY21 revenue/Ebitda/adjusted profit after tax was 16.8/11.5/14.4% above our estimates, owing to 19% higher than anticipated volumes, offset by 7% lower per unit Ebitda.

Blended volume stood at 2.7 million metric standard cubic meter per day (estimated 2.3mmscmd), down 56.4/56.6% QoQ/YoY.

Volumes were down due to weak compressed natural gas demand (60% of volume mix in Q1 FY21 versus 75% in Q1 FY20).

Compressed natural gas/piped natural gas volumes stood at 1.6/1.1mmscmd. Volume numbers cannot be compared on a YoY or QoQ basis because of the adverse impact of the nationwide lockdown in Q1.

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HDFC Securities Indraprastha Gas Q1FY21 Results Update.pdf

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