Motilal Oswal: Indraprastha Gas Expect CNG Volumes To Take Longer To Achieve Normalcy 
A gas valve sits on a pipeline. (Photographer: Callaghan O’Hare/Bloomberg)

Motilal Oswal: Indraprastha Gas Expect CNG Volumes To Take Longer To Achieve Normalcy 

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Motilal Oswal Report

Indraprastha Gas Ltd. reported better-than-estimated volumes (2.7 million metric standard cubic meter per day), but Ebitda came in lower than estimated (at Rs 834 million).

The gross margin expanded to Rs 13.7/standard cubic meter, but higher opex of Rs 10.4/scm resulted in a lower Ebitda/scm margin of Rs 3.4.

Recently in an Interview, AK Jana – Managing Director of Indraprastha Gas stated that compressed natural gas (CNG) and piped natural gas (PNG) industrial volumes had recovered to 80% of pre-Covid-19 levels.

Although, we believe that virtual connect has drastically impacted intra-city/intrastate travel. Schools are shut and commercial segment is down with dubiety on people returning to restaurants and malls.

All of these factors have led to a huge impact on demand for fuels (CNG and PNG – commercial).

Thus, the entire value chain needs to be up and running to bring back normalcy in volumes, and in turn, stable volume consumption.

Click on the attachment to read the full report:

Motilal Oswal Indraprastha Gas Q1FY21 Result Update.pdf


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