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 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 for setting up CNG stations in Delhi related to period 1 April 2007 to 31^st March 2014. The company has filed a writ petition on 11 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 2014

For quarter ended December 2014, the income from operations fell 9% to Rs 944.41 crore compared to corresponding previous year quarter. Operating margins of the company rose 160 bps to 20.3% as purchase of Natural gas as a percentage of net sales (net of stock adjustment) fell 260 bps to 66.2% offset by 80 bps rise in other expenses to 11.7% and 20 bps rise in employee expenses to 1.7%. Operating profit of the company fell 2% to Rs 192.01 crore.

Other income of the company rose to Rs 11.38 crore compared to Rs 7.02 crore in Q3FY'14. Interest cost decreased 47% to Rs 6.33 crore from Rs 11.89 crore in the corresponding previous year period. Depreciation fell 33% to Rs 37.56 crore. PBT as a result rose 19% to Rs 159.5 crore. The effective tax rate fell 130 bps to 32.2% post, which the company's net profit was up 21% at Rs 108.2 crore.

Performance for nine months ended December 2014

For nine months ended December 2014, the top-line fell 6% to Rs 2764.19 crore compared to corresponding previous year period. OPM of the company rose 230 bps to 22.3% as purchase of natural gas as a percentage of net sales (net of stock adjustment) fell 370 bps to 64.3% offset by 110 bps rise in other expenses to 11.6% and 30 bps rise in employee expenses to 1.8%. As a result operating profit rose 5% to Rs 617.2 crore.

Other income rose to Rs 27.71 crore from Rs 14.67 crore, up by 89%. Interest cost of the company decreased 25% to Rs 25.85 crore from Rs 34.5 crore. Depreciation fell 32% to Rs 111.35 crore. PBT as a result rose 25% to Rs 507.71 crore. The effective tax rate fell 100 bps to 32.7% post, which the company's net profit was up 27% to Rs 341.84 crore.

The scrip is currently trading at Rs 429 on the BSE.