Purchase of natural gas as a percentage of net sales (net of stock adjustment) fell 80 bps to 52.3% while employee benefit expenses fell 20 bps to 2.4% and other expenses increased 280 bps to 18.9%. Other expenses were higher in view of increase in minimum wages by approx. Rs 12 crore and provision made for DDA/ Defense land rental etc. by approx. Rs 10 crore.

Other income of the company rose to Rs 17.88 crore compared to Rs 7.03 crore in Q1FY'17. Interest cost was Rs 0.36 crore compared to Rs 0.25 crore in the corresponding previous year period. Depreciation rose 9% to Rs 43.9 crore. PBT as a result rose 13% to Rs 250.93 crore. The effective tax rate rose 270 bps to 35.7% post, which the company's net profit was up 9% at Rs 161.26 crore.

During Q1FY18, CNG sales volume has increased by 12% to 248 million kgs and PNG sales volumes increased by 17% to 109 million scm (standard cubic meter) over Q1FY17. On an overall basis there is 13% increase in sales volume to 446 million scm during this quarter over corresponding quarter of FY17

PNG sales to industrial/commercial segment increased by 13% to 45 million scm during the quarter while domestic PNG segment grew 4% to 24 million scm and NG segment increased 33% to 40 million scm.

Performance for the year ended March 2017

For year ended March 2017, Net sales of the company excluding excise duty rose 3% to Rs 3814.78 crore compared to corresponding previous year quarter. Product wise, CNG recorded sales turnover of Rs. 3286 crore, registering a growth of 7% and PNG recorded sales turnover of Rs. 919 crore registering a decline of 6% over previous year. In spite of increase in sales volume, PNG sales value has decreased because of decrease in the average selling price of PNG segment by 20% mainly on account of reduction in prices of industrial & Commercial segment due to substantial reduction in the price of Term-RLNG in the month of January 2016.

Operating margins of the company rose 420 bps to 25.3%. Purchase of natural gas as a percentage of net sales (net of stock adjustment) fell 710 bps to 54.6% while employee benefit expenses rose 30 bps to 2.4% and other expenses increased 260 bps to 17.7%. As a result operating profit of the company rose 24% to Rs 963.75 crore.

Other income of the company rose 118% to Rs 65.22 crore compared to Rs 29.89 crore in FY'16. Interest cost was Rs 1.21 crore compared to Rs 9.92 crore in the corresponding previous year period. Depreciation rose 7% to Rs 167.07 crore. PBT as a result rose 35% to Rs 860.69 crore. The effective tax rate fell 70 bps to 33.6% post, which the company's net profit was up 36% at Rs 571.07 crore.

During FY17, sales volume increased from 1465 million scm in FY 16 to 1675 million scm showing a growth of 14% over FY16. CNG sales volume increased by 10% and PNG sales volumes increased 19% over FY16.

The scrip is currently trading at Rs 1216 on the BSE.