Purchase of stock in trade of natural gas as a percentage of net sales (net of stock adjustment) rose 90 bps to 58.5% while employee benefit expenses fell 10 bps to 2.3% and other expenses decreased 60 bps to 16.4%.

Other income of the company rose to Rs 35.4 crore compared to Rs 24.85 crore in Q1FY'19. Interest cost was Rs 1.63 crore compared to Rs 0.56 crore in the corresponding previous year period. Depreciation rose 28% to Rs 60.47 crore. PBT as a result rose 21% to Rs 331.76 crore. The effective tax rate fell 150 bps to 34.2% post, which the company's net profit was up 24% at Rs 218.36 crore.

During 14FY20, CNG sales volume has increased by 13% to 425 MMSCM and PNG sales volumes increased by 12% over Q1 of FY19 to 144 MMSCM. On an overall basis there is 13% increase in sales volume during this quarter over corresponding quarter of FY19.

Performance for year ended March 2019

For year ended March 2019, Net sales of the company excluding excise duty rose 27% to Rs 5764.84 crore compared to corresponding previous year quarter.

Operating margins of the company fell 280 bps to 21.8%. Cost of natural gas as a percentage of net sales (net of stock adjustment) rose 400 bps to 58.9% while employee benefit expenses rose 10 bps to 2.5% and other expenses decreased 130 bps to 16.8%. As a result operating profit of the company rose 13% to Rs 1256.98 crore.

Other income of the company rose 46% to Rs 146.15 crore compared to Rs 100.05 crore in FY'18. Interest cost was Rs 2.05 crore compared to Rs 1.69 crore in the corresponding previous year period. Depreciation rose 11% to Rs 201.07 crore. PBT as a result rose 16% to Rs 1200.01 crore. The effective tax rate fell 60 bps to 34.4% post, which the company's net profit was up 17% at Rs 786.67 crore.

The scrip is currently trading at Rs 327 on the BSE.