{"id":146571,"date":"2023-05-18T03:45:49","date_gmt":"2023-05-18T07:45:49","guid":{"rendered":"https:\/\/44.250.171.167\/?p=146571"},"modified":"2023-05-18T03:45:51","modified_gmt":"2023-05-18T07:45:51","slug":"indraprastha-gas-limited-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indraprastha-gas-limited-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Indraprastha Gas Limited Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Indraprastha Gas Limited (IGL) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:01:29] IGL reported highest ever sales volume of 2,952 million cubic meters for FY23, averaging 8.09 million cubic meters per day.<\/li>\n<\/ul>\n<ul>\n<li>[00:05:03] IGL said that government announced a new pricing formula for domestic gas prices, which is expected to increase natural gas demand.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:06:39] Probal Sen at ICICI Securities asked about the current percentage of priority gas used for CNG and household, and what are the other sources of gas. Sanjay Kumar MD said that in FY22-23, 89% of gas sourced was APM, non-APM, and CBG, while 2% was HPHT. The remaining gas was RLNG.<\/li>\n<\/ul>\n<ul>\n<li>[00:08:54] Probal Sen of ICICI Securities asked about the guidance on the addition of CNG stations in newer geographical areas for 2024, including plans and expected capex. Sanjay Kumar MD replied that for FY24 IGL will have 100 CNG stations, and 50% of them will be new areas. And INR1600 crore is the estimated capex.<\/li>\n<\/ul>\n<ul>\n<li>[00:09:45] Abhishek at Batlivala &amp; Karani enquired if the benefit of lower spot LNG prices not flow through to EBITDA per SCM in 1Q23, and if it\u2019s expected to see this benefit in future quarters. Sanjay Kumar MD said the company expects EBITDA to be between INR7.5 to INR8 per SCM in FY24, due to the benefit of lower gas prices, which started accruing after 9 April, 2023.<\/li>\n<\/ul>\n<ul>\n<li>[00:12:16] Abhishek with Batlivala &amp; Karani queried what percentage of volumes is expected to come from outside Delhi NCR by FY25. Sanjay Kumar MD replied that 60% of the volume will come from Delhi and surrounding areas in the next two years, while 40% will come from outside GS.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:03] Yogesh Patil of Dolat Capital asked if IGL is still blending HPHT gas from the gas exchange to fulfill the demand of the priority segment, despite the shortfall of APM gas. Sanjay Kumar MD said that in the last financial year, 89% of the total gas requirement for CNG and PNG was met, with 89% of that coming from APM, non-APM, and CBG, 2% from HTHP gas, and 9% from RLNG. And blending is still the same.<\/li>\n<\/ul>\n<ul>\n<li>[00:16:38] Rajesh Aynor at ITI Limited asked about the expected volume growth trajectory for the coming year, and the drivers of this growth. Sanjay Kumar MD is targeting a growth of 1 million SCM per year. IGL touched 8.09 SCM per day and IGL is targeting 9 plus next year. IGL expect to see increased demand for CNG and PNG from the auto, bus, and passenger vehicle segments, as well as from the commercial and industrial sectors.<\/li>\n<\/ul>\n<ul>\n<li>[00:19:11] Rajesh Aynor at ITI Limited enquired about the current bus population in Delhi NCR, and how many of these buses will be replaced by electric buses in the future. Pawan Kumar said that currently, there are approx. 7,500 CNG buses in Delhi (DTC and DIMTS), and 350 electric buses. The Delhi govt. plans to introduce more electric buses. The transition to electric buses will have a negative impact on the volume of CNG sales, but is not an immediate threat.<\/li>\n<\/ul>\n<ul>\n<li>[00:27:34] Kirtan Mehta from BOB Capital Markets asked what steps IGL is taking to increase sales of dumpers, vehicles, and tractors, and how long will it take to gain momentum. Sanjay Kumar MD replied that the company is working with transport operators and dumper operators to convert their diesel-powered vehicles to CNG. The company is offering incentives to help cover the cost of conversion.<\/li>\n<\/ul>\n<ul>\n<li>[00:36:40] Mayank Maheshwari from Morgan Stanley asked about IGL\u2019s thought process around long-term sourcing of gas and how IGL is trying to secure growth. Pawan Kumar replied that currently, 87% of the company&#8217;s gas is sourced through APM, 5% through HPHT gas, 5% through long-term contracts, and 3% through spot purchases. IGL is confident that it will be able to source all the gas it needs in the future due to increased availability and the option of entering into long-term contracts.<\/li>\n<\/ul>\n<ul>\n<li>[00:41:29] Vishnu Kumar of Parth Capital enquired what net spread between petrol and CNG would be a comfortable number for IGL, considering the various pricing factors involved. Sanjay Kumar MD replied that a 20-25% spread between the price of petrol and CNG is necessary to sustain the conversion from diesel to CNG, as there is a difference in the units of measurement, ltrs vs. kgs.<\/li>\n<\/ul>\n<ul>\n<li>[00:46:22] Vishnu Kumar of Parth Capital asked about the total capex planned for the next 3-4 years outside Delhi NCR. Sanjay Kumar MD said that around INR2,000 crore is what IGL has spent in GAs other than NCR region. For next 3-4 years should be a INR1600 crore number and INR800-850 crore in new GAs.<\/li>\n<\/ul>\n<ul>\n<li>[00:50:04] Vipin Goel from Mirabilis Investment asked about the security deposit amount in the other financial liabilities in the balance sheet for FY24. Sanjay Kumar MD clarified that it\u2019s approx. INR1200 crores.<\/li>\n<\/ul>\n<ul>\n<li>[00:54:47] Sabri Hazarika from Emkey Global asked about the CNG volumes in kg terms for 4Q23 and FY23. Pawan Kumar Director Commercial answered that for 4Q23, avg. sale was 44.51 lakh per kg. For 3Q23, it was around 44.44 lakh per kg per day.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Indraprastha Gas Limited (IGL) Q4 FY23 Earnings Concall Management Update: [00:01:29] IGL reported highest ever sales volume of 2,952 million cubic meters for FY23, averaging 8.09 million cubic meters per day. [00:05:03] IGL said that government announced a new pricing formula for domestic gas prices, which is expected to increase natural gas [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Indraprastha Gas Limited Q4 FY23 Earnings Conference Call Insights #IGL #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,11167],"class_list":["post-146571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-gas-energy"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":145984,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-indraprastha-gas-limited-for-q4-fy23\/","url_meta":{"origin":146571,"position":0},"title":"Earnings Summary Of Indraprastha Gas Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 12, 2023","format":false,"excerpt":"Indraprastha Gas Limited (IGL) is a leading natural gas distribution company in India. It was established in 1998 to implement the Compressed Natural Gas (CNG) program in the National Capital Region of Delhi, as a joint venture between GAIL (India) Limited, Bharat Petroleum Corporation Limited (BPCL) and the Government of\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-6-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142832,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-indraprastha-gas-limited-for-q3-fy23\/","url_meta":{"origin":146571,"position":1},"title":"Earnings Summary Of Indraprastha Gas Limited For Q3 FY23","author":"Hardik Bhandare","date":"February 27, 2023","format":false,"excerpt":"Indraprastha Gas Limited (NSE: IGL) is engaged in the distribution of natural gas in the National Capital Territory of Delhi and adjoining areas. The company is responsible for the supply of piped natural gas (PNG) to domestic households, commercial establishments, and compressed natural gas (CNG) to automobiles. IGL also provides\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":154569,"url":"https:\/\/alphastreet.com\/india\/indraprastha-gas-benefiting-from-the-changes-in-the-industry\/","url_meta":{"origin":146571,"position":2},"title":"Indraprastha Gas: Benefiting from the Changes in the Industry?","author":"Karan_Singh","date":"September 8, 2023","format":false,"excerpt":"\u201cLast financial year we have seen a lot of volatility and very high prices of natural gas due to geographical situation and supply related challenges across the world. The CGD industry has faced the challenge quite successfully. Now with implementation of the Kirit Parikh Committee report there is visibility in\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/alphastreet.com\/india\/category\/energy-stocks\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/iStock-165814335.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/iStock-165814335.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/iStock-165814335.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":155665,"url":"https:\/\/alphastreet.com\/india\/indraprastha-gas-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":146571,"position":3},"title":"Indraprastha Gas Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 2, 2023","format":false,"excerpt":"Key highlights from Indraprastha Gas Limited (IGL) Q2 FY24 Earnings Concall Business Performance Recorded highest ever quarterly profit of INR535 crores, up 29% YoY. Sales volume at 8.3 MMSCMD, up 3% YoY. EBITDA at INR656 crores, up 24% YoY. PBT at INR686 crores, up 26% YoY. Gross profit per SCM\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":140232,"url":"https:\/\/alphastreet.com\/india\/indraprastha-gas-limited-q3-fy23-net-profit-slides-by-11\/","url_meta":{"origin":146571,"position":4},"title":"Indraprastha Gas Limited Q3 FY23; Net Profit Slides By 11%","author":"Hardik Bhandare","date":"February 6, 2023","format":false,"excerpt":"Indraprastha Gas Limited (NSE: IGL) reported Revenue from Operations for Q3 FY23 of \u20b94,089.03 Crore, a growth of 24.7%. The Consolidated Net Profit of \u20b9334.06 Crore, down 11% from \u20b9374.76 Crore in the same quarter of the previous year. The Earnings per Share is \u20b94.77 for this quarter.","rel":"","context":"In &quot;LATEST&quot;","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/7f98ada3-af1a-48de-b861-1e2966db92ac-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":133439,"url":"https:\/\/alphastreet.com\/india\/a-deep-dive-on-indraprastha-gas-ltd-q1-fy-23\/","url_meta":{"origin":146571,"position":5},"title":"A deep dive on Indraprastha Gas Ltd Q1 FY 23","author":"sreerupa","date":"August 24, 2022","format":false,"excerpt":"Stock Data Ticker: \u00a0IGL Exchange :NSE and BSE Industry: Natural Gas The share price of IGL increased by 1.21% as on 24 Aug, 2022, 01:46 PM IST based onthe previous closing price of Rs 406.85.The share has reached Rs 602.05 in 52 Week high and Rs 321.00 in 52 week\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=146571"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=146571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=146571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=146571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}