Delhi Development Authority (DDA) has raised a total demand of Rs.155.64 crore during 2013-14 on account of increase in license fees in respect of 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.The matter is pending in the Hon'ble High Court of Delhi.

Performance for the quarter ended December 2015

For quarter ended December 2015, the income from operations fell 2% to Rs 929.22 crore compared to corresponding previous year quarter. Operating margins of the company fell 10 bps to 20.2% as other expenses as a percentage of net sales (net of stock adjustment) rose 280 bps to 16% and employee benefit expenses rose 90 bps to 2.6% while cost of natural gas decreased 360 bps to 61.2%. Operating profit of the company fell 2% to Rs 187.32 crore.

Other income of the company fell to Rs 11.21 crore compared to Rs 11.38 crore in Q3FY'15. Interest cost decreased 72% to Rs 1.75 crore from Rs 6.33 crore in the corresponding previous year period. Depreciation rose 6% to Rs 39.91 crore. PBT as a result fell 2% to Rs 156.87 crore. The effective tax rate rose 80 bps to 33% post, which the company's net profit was down 3% at Rs 105.13 crore.

Performance for nine months ended December 2015

For nine months ended December 2015, the top-line rose 1% to Rs 2800.16 crore compared to corresponding previous year period. OPM of the company fell 180 bps to 20.5% as other expenses as a percentage of net sales (net of stock adjustment) rose 180 bps to 14.9% and employee benefit expenses increased 30 bps to 2.1% while cost of material consumed decreased 30 bps to 62.5%. As a result operating profit fell 7% to Rs 574.78 crore.

Other income fell to Rs 23.34 crore from Rs 27.71 crore, down by 16%. Interest cost of the company decreased 69% to Rs 8.05 crore from Rs 25.85 crore. Depreciation rose 6% to Rs 117.91 crore. PBT as a result fell 7% to Rs 472.16 crore. The effective tax rate rose 200 bps to 34.6% post, which the company's net profit was down 10% to Rs 308.56 crore.

The scrip is currently trading at Rs 507 on the BSE.