The share price of Indraprastha Gas (IGL) rose by almost 4 percent at the beginning of trading on June 28 after the company reported the March quarter income.
The company has posted Q4FY21 net profit at RS 331 Crore against Rs 334.87 Crore in the quarter that ended December 2020.
The income rose 7.22 percent at Rs 1,710.32 Crore against Rs 1,595.09 Crore (QOQ).
The company’s board has recommended dividend payments at 180 percent I.e. 36 per share (nominal value of each RS 2) for the financial year 2020-21, subject to shareholder approval in the next annual general meeting.
This is a story of stable volume growth in the city gas room. The latest performance performance for MGL & Gujarat Gas provides a good entry point. It is also a good post to reopen Covid-19 play by rebounding in mobility.
Q4 is Miss, but a good amount overall. The margin is likely to be more than RS 8 / SCM in H1FY22 and expects the city gas company to pass through the increase in the price of a sharp domestic gas in H2FY22. Broking Firms see the reverse risk with FY22-23 income.
Companies report income to beat better volume growth & cost control. Morgan Stanley saw the reverse risk of future income growth
FY21 Ebitda mostly stands flat, despite a 17 percent yoy decline in volume. This increases EPS FY23 estimation by 6 percent at a better margin view. Recovery that expects a second covid wave.
The underlying performance is better, with volume in front of estimates. Volume back above the pre-covid level.
