Cost of natural gas as a percentage of net sales (net of stock adjustment) rose 590 bps to 59.3% while employee benefit expenses was down 20 bps at 2.1% and other expenses decreased 210 bps to 16.9%.

Other income of the company rose to Rs 33.17 crore compared to Rs 24.97 crore in Q2FY'18. Interest cost was Rs 0.56 crore compared to Rs 0.36 crore in the corresponding previous year period. Depreciation rose 12% to Rs 50.3 crore. PBT as a result rose 11% to Rs 290.32 crore. The effective tax rate rose 10 bps to 35.5% post, which the company's net profit was up 11% at Rs 187.28 crore.

During Q2FY19, CNG sales volume has increased by 13% to 290 million kgs. There is increase in PNG sales to industrial/commercial segment by 24% to 64 million SCM during the quarter. PNG domestic segment has' also shown a growth of 3% to 27 million SCM as compared to the same quarter previous year. The NG segment has shown an increase of 7% to 45 million SCM in current quarter as compared to 43 million SCM in the same quarter previous year. Overall PNG sales volumes have increased by 14% to 136 million SCM over Q2 ofFY18. On an overall basis there is 13% growth in sales volume to 542 million scm per day during this quarter over the corresponding quarter of FY18

Performance for half year ended September 2018

For half year ended September 2018, Net sales of the company excluding excise duty rose 26% to Rs 2708.9 crore compared to corresponding previous year quarter. Product wise, CNG recorded sales turnover of Rs. 2866 crore, registering a growth of 17% and PNG recorded sales turnover of Rs. 840 crore up by 27%.

Operating margins of the company fell 370 bps to 22.3%. Cost of natural gas as a percentage of net sales (net of stock adjustment) fell 540 bps to 58.5% while employee benefit expenses fell 10 bps to 2.3% and other expenses decreased 150 bps to 17%. As a result operating profit of the company rose 8% to Rs 603.06 crore.

Other income of the company rose 39% to Rs 59.41 crore compared to Rs 42.85 crore in H1FY'18. Interest cost was Rs 1.12 crore compared to Rs 0.72 crore in the corresponding previous year period. Depreciation rose 10% to Rs 97.56 crore. PBT as a result rose 10% to Rs 563.79 crore. The effective tax rate rose 10 bps to 35.6% post, which the company's net profit was up 10% at Rs 363.17 crore.

The scrip is currently trading at Rs 275 on the BSE.