Views on Indraprastha Gas 3QFY2014 result - Angel Broking

Views of Mr. Bhavesh Chauhan (Sr. Research Analyst - Oil & Gas, Angel Broking) on Indraprastha Gas 3QFY2014 results:

Indraprasth Gas PAT up 2.9% yoy

"Indraprastha Gas reported mixed 3QFY2014 results. Its net sales grew by 19.8% yoy to Rs. 1,041cr. However, due to higher cost of gas the company's EBITDA grew by a muted 3.9% yoy to Rs. 195cr. The cost of gas sold also increased by 24.2% yoy to Rs. 715cr due to greater mix of high cost imported RLNG. Depreciation expenses grew by 17.7% yoy to Rs. 56cr while the tax rate grew to 33.4% in 3QFY2014, compared to 32.4% in 3QFY2013 which led to net profit growing by only 2.9% yoy to Rs. 90cr.

The company has recently slashed prices of CNG in Delhi and Greater Noida by Rs. 15/kg after the oil ministry's ordered to allocate domestic gas for the entire consumption requirement of CGD players and the company has slashed the prices to pass the benefits to the end users. We keep our rating and target price under review."

Indraprastha Gas 3QFY2014 Result Review (CMP: Rs. 264 / TP: -/ Upside: -)

Source : Equity Bulls

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