Indraprastha Gas - Ebitda Miss Due To Lower CNG Volumes In Q3: Motilal Oswal 

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Motilal Oswal Report

Indraprastha Gas Ltd. missed our Ebitda estimate by 7% on lower-than estimated compressed natural gas volumes in Q3 FY21 (down 9% estimate; down 9% YoY).

Gross margin expansion was aided by lower gas cost, while opex cost was higher during the quarter.

Oil marketing companies have been in talks with city gas distributors to increase commissions to sell CNG at their retail outlets. We may see a hike in rentals for the company soon.

We build in Ebitda/standard cubic meter of Rs 6.7/Rs 6.4 (unchanged) for FY22/FY23, factoring in a rise in rentals to OMCs as well as administered price mechanism cost – which the company may not be able to fully pass on to consumers.

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