IGL

Indraprastha Gas Ltd (IGL) posted a set of decent numbers for Q1Fy15. This only seller of CNG in Delhi, reported a 30% (YoY) jump in net profit at Rs.114 crore but more than operational efficiency, it was driven by revision in depreciation charges. It came in at Rs.37 crore, much lower than Rs.53 crore in previous Q1. If the company had not carried out this stipulated revision in depreciation, it would have been higher by Rs.21 crore and would have thus impacted the net profit to that extent. Net sales for the quarter was down 3.5% at Rs.867 crore. This fall in sales is attributed to reduction in selling price of CNG and domestic piped gas from Feb’14. In terms of sales volume, that of CNG rose 2% while PNG declined 4%.

All eyes will be on the judgement expected today from the Supreme Court over the government regulator Petroleum and Natural Gas Regulatory Board (PNGRB) tariff order. If one may recollect, in June 2012, the Delhi High Court had ruled that the PNGRB did not have the power to fix any component of network tariff or compression charges for any entity having its own distribution network. PNGRB wanted tariff to be cut by around 60% and post the High Court order, it had filed a 'special leave petition' in the Supreme Court against the order of Delhi High Court on this issue. But the SC has been postponing this date consistently and once again, one hopes that today the issue will be finally resolved there will be a closure to this.