Cost of natural gas as a percentage of net sales (net of stock adjustment) rose 290 bps to 58.7% while employee benefit expenses rose 70 bps to 3% and other expenses decreased 120 bps to 16.8%.

Other income of the company rose to Rs 51.31 crore compared to Rs 27.17 crore in Q4FY'18. Interest cost was Rs 0.02 crore compared to Rs 0.61 crore in the corresponding previous year period. Depreciation rose 11% to Rs 52.24 crore. PBT as a result rose 22% to Rs 330.25 crore. The effective tax rate fell 370 bps to 31.7% post, which the company's net profit was up 29% at Rs 225.5 crore.

During Q4FY19, CNG sales volume has increased by 15% and PNG sales volumes increased by 20% over Q4 of FY18. On an overall basis there is 17% increase in sales volume during this quarter over corresponding quarter of FY18.

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.

Consolidated Results

The company has 50% equity in two CGO companies namely Central UP Gas Limited and Maharashtra Natural Gas Limited. As per the requirement of Companies Act, 2013, financial results of these two associate companies for the year ended March 31, 2019 have been consolidated with the financials of Indraprastha Gas Limited on equity basis in accordance with Ind AS (28) after considering 50% share of total comprehensive income of these two companies.

Rs. 87 crore against last year figure of Rs. 72 crore has been considered as 50% share of total comprehensive income of these two companies in the consolidated accounts for FY19. The consolidated total comprehensive income of the company (net of dividend received from these companies and deferred tax adjustment) comes to Rs. 841 crore against the consolidated profit of Rs. 721 crore in the previous year.

The scrip is currently trading at Rs 334 on the BSE.