Cost of natural gas as a percentage of net sales (net of stock adjustment) rose 210 bps to 56.8% while employee benefit expenses fell 40 bps to 2.3% and other expenses increased 160 bps to 18.6%.

Other income of the company rose to Rs 32.55 crore compared to Rs 15.24 crore in Q3FY'17. Interest cost was Rs 0.36 crore compared to Rs 0.25 crore in the corresponding previous year period. Depreciation rose 8% to Rs 45.33 crore. PBT as a result rose 17% to Rs 249.93 crore. The effective tax rate rose 120 bps to 33.6% post, which the company's net profit was up 15% at Rs 165.92 crore.

During Q3FY18, CNG sales volume has increased by 11% to 257 million kgs and PNG sales volumes increased by 21% to 126 million scm (standard cubic meter) over Q3FY17. On an overall basis there is 14% increase in sales volume to 484 million scm during this quarter over corresponding quarter of FY17

Performance for nine months ended December 2017

For nine months ended December 2017, Net sales of the company excluding excise duty rose 19% to Rs 3359.21 crore compared to corresponding previous year quarter. Product wise, CNG recorded sales turnover of Rs. 2866 crore, registering a growth of 17% and PNG recorded sales turnover of Rs. 840 crore up by 27%.

Operating margins of the company fell 160 bps to 24.5%. Cost of natural gas as a percentage of net sales (net of stock adjustment) fell 40 bps to 54% while employee benefit expenses fell 20 bps to 2.3% and other expenses increased 230 bps to 19.2%. As a result operating profit of the company rose 12% to Rs 821.97 crore.

Other income of the company rose 70% to Rs 75.4 crore compared to Rs 44.34 crore in 9MFY'17. Interest cost was Rs 1.08 crore compared to Rs 0.75 crore in the corresponding previous year period. Depreciation rose 8% to Rs 134.25 crore. PBT as a result rose 17% to Rs 762.04 crore. The effective tax rate rose 170 bps to 34.8% post, which the company's net profit was up 14% at Rs 496.95 crore.

The scrip is currently trading at Rs 290 on the BSE.