Indraprastha Gas - SELL, 11% downside - Ambit

Indraprastha Gas (IGL) will declare its results today. We expect the company to deliver a PAT of Rs811mn, 5% lower than Bloomberg consensus of Rs853mn. We have assumed: (a) CNG volume of 254mmscm and PNG volume of 91mmscm, implying a QoQ volume growth of 2% in CNG and of 3% in PNG, and (b) margins (EBITDA/scm) to decline QoQ, as the company did not increase end prices during the quarter to pass on the impact from the depreciation of INR vs USD. However, the margins are likely to be still robust at Rs5.2/scm.

Source : Equity Bulls

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