Petroleum and Natural Gas Regulatory Board (PNGRB) vide its order no. TO/03/2012 dated 9 April 2012 determined the per unit network tariff and compression charge for the City Gas Distribution (CGD) Network of the Company for Delhi, based on submission of data by the Company in May 2009 and certain assumptions taken by PNGRB in this regard. The tariffs determined by PNGRB are much lower than the rates submitted by the Company.

Further, PNGRB made the determined tariffs applicable with retrospective effect from 1 April 2008. In its order PNGRB has stated that the modalities and time frame for refund of differential Network Tariff and Compression Charge would be decided subsequently.

The company filed a writ petition on 10 April 2012 against the order of PNGRB dated 9 April 2012 before the Hon'ble Delhi High Court. The Hon'ble High Court of Delhi has passed the judgment in this case on 1 June 2012 and has quashed the PNGRB order dated 9 April 2012. PNGRB has filed special leave petition before the Hon'ble Supreme Court of India against the order dated 1 June 2012 of Hon'ble Delhi High Court. Matter is still pending in the Hon'ble Supreme Court of India.

Delhi Development Authority (DDA) has raised a total demand of Rs.155.64 crore during the year on account of increase in license fees in respect of 61 sites taken by the company on lease from DDA for setting up CNG stations in Delhi. This increase in license fees is related to the period 1st April 2007 to 31st March 2014. The Company has filed a writ petition on 11th October 2013 before the Hon'ble Delhi High Court against the demand raised by DDA as the revised license fees has been increased manifold and made applicable retrospectively from Financial year 2007-08. . Matter is still pending in the Hon'ble High Court of Delhi.

During the quarter the company has revised depreciation rate on certain fixed assets as per the useful life specified in the companies act 2013 or reassessed by the company on the basis of technical evaluation. Had there not been any change in useful life of assets, depreciation for the quarter would have been higher by Rs 21.48 crore.

Performance for the quarter ended June 2014

For quarter ended June 2014, the income from operations fell 4% to Rs 868.73 crore compared to corresponding previous year quarter. However the company operating margins rose 250 bps to 24% as purchase of Natural gas as a percentage of net sales (net of stock adjustment) rose 380 bps to 62.4% limited by 100 bps rise in other expenses to 11.8% and 20 bps rise in employee expenses to 1.9%. Operating profit of the company rose 7% to Rs 208.35 crore.

Other income of the company rose to Rs 7.77 crore compared to Rs 3.81 crore in Q1FY'14. Interest cost decreased 29% to Rs 9.13 crore from Rs 12.8 crore in the corresponding previous year period. Depreciation rose 31% to Rs 36.83 crore. PBT as a result rose 29% to Rs 170.16 crore. The effective tax rate fell 60 bps to 33% post, which the company's net profit was up 30% at Rs 114.03 crore.

Performance for year ended March 2014

For year ended March 2014, the top-line rose 16% to Rs 3922.16 crore compared to corresponding previous year period. OPM of the company fell 260 bps to 19.9% as purchase of natural gas as a percentage of net sales (net of stock adjustment) rose 310 bps to 68.4% limited by 40 bps fall in other expenses to 10.2% and 20 bps fall in employee expenses to 1.5%. As a result operating profit rose 3% to Rs 782.39 crore.

Other income rose to Rs 21.08 crore from Rs 12.9 crore, up by 63%. Interest cost of the company decreased 21% to Rs 44.13 crore from Rs 56.19 crore. Depreciation rose 18% to Rs 219.54 crore. PBT as a result inched up 2% to Rs 539.8 crore. The effective tax rate rose 30 bps to 33.3% post, which the company's net profit was up 2% to Rs 360.26 crore.

The scrip is currently trading at Rs 385.2 on the BSE.