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. The Hon'ble Supreme Court of India passed the judgement in this case on July 1, 2015 and has dismissed the appeal of PNGRB.

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 June 2015

For quarter ended June 2015, the income from operations rose 4% to Rs 901.73 crore compared to corresponding previous year quarter. Operating margins of the company fell 220 bps to 21.7% as other expenses as a percentage of net sales (net of stock adjustment) rose 120 bps to 14.4% and purchase of natural gas increased 100 bps to 62% while employee benefit expenses was flat at 1.9%. Operating profit of the company fell 6% to Rs 196.05 crore.

Other income of the company fell to Rs 5.58 crore compared to Rs 7.77 crore in Q1FY'15. Interest cost decreased 61% to Rs 3.56 crore from Rs 9.13 crore in the corresponding previous year period. Depreciation rose 5% to Rs 38.55 crore. PBT as a result fell 6% to Rs 159.52 crore. The effective tax rate rose 320 bps to 36.2% post, which the company's net profit was down 11% at Rs 101.81 crore.

Performance for year ended March 2015

For year ended March 2015, the top-line fell 6% to Rs 3680.99 crore compared to corresponding previous year period. OPM of the company rose 150 bps to 22.3% as purchase of natural gas as a percentage of net sales (net of stock adjustment) fell 360 bps to 63.6% offset by 180 bps rise in other expenses to 13.1% and 30 bps rise in employee expenses to 1.8%. As a result operating profit rose 1% to Rs 793.04 crore.

Other income rose to Rs 34.54 crore from Rs 21.08 crore, up by 64%. Interest cost of the company decreased 32% to Rs 29.82 crore from Rs 44.13 crore. Depreciation fell 32% to Rs 148.72 crore. PBT as a result rose 20% to Rs 649.04 crore. The effective tax rate fell 70 bps to 32.6% post, which the company's net profit was up 22% to Rs 437.73 crore.

The scrip is currently trading at Rs 501 on the BSE.