Indraprastha Gas Q2 Review - Strong Results, Likely To Improve: Prabhudas Lilladher
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We maintain our earnings for FY22/23E. Indraprastha Gas Ltd. reported strong results with Ebitda/profit after tax of Rs 5.3 billion (up 39% QoQ; two-year compound annual growth rate 16%; our estimate: Rs 5.5 billion) and Rs 4.0 billion (up 64% QoQ; two-year CAGR 3% due to tax write back in September 2019; our estimate: Rs 3.7 billion) respectively.
Volumes recovered as lockdown restrictions eased to 666 million standard cubic meter (up 38% QoQ; two-year CAGR 5%).
We believe receding pandemic concerns and opening up of schools will further drive growth in Q3.
Indraprastha Gas remains an enviable business model with high volume growth due to geographical expansion and addition of new buses and taxis.
Also, fuel economics, shift to private vehicle ownership post pandemic will drive compressed natural gas volumes despite excise duty cuts.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.