Delhi Development Authority (DDA) 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 from DDA for setting up CNG stations in Delhi. This increase in license fees is related to the period 1st April 2007 to 31st March 2014. The company has filed a writ petition on 11th 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 September 2015, the income from operations rose 2% to Rs 969.18 crore compared to corresponding previous year quarter. Operating margins of the company fell 310 bps to 19.7% as other expenses as a percentage of net sales (net of stock adjustment) rose 140 bps to 14.2% and cost of natural gas increased 180 bps to 64.4% while employee benefit expenses fell 10 bps to 1.7%. Operating profit of the company fell 12% to Rs 191.39 crore.

Other income of the company fell to Rs 6.55 crore compared to Rs 8.55 crore in Q2FY'15. Interest cost decreased 74% to Rs 2.74 crore from Rs 10.39 crore in the corresponding previous year period. Depreciation rose 7% to Rs 39.45 crore. PBT as a result fell 13% to Rs 155.75 crore. The effective tax rate rose 190 bps to 34.8% post, which the company's net profit was down 15% at Rs 101.6 crore.

Performance for half year ended September 2015

For half year ended September 2015, the top-line rose 3% to Rs 1870.94 crore compared to corresponding previous year period. OPM of the company fell 270 bps to 22.3% as cost of natural gas as a percentage of net sales (net of stock adjustment) rose 140 bps to 63.2% and other expenses increased 130 bps to 14.3% while employee expenses remained flat 1.8%. As a result operating profit fell 9% to Rs 387.46 crore.

Other income fell to Rs 12.13 crore from Rs 16.33 crore, down by 26%. Interest cost of the company decreased 68% to Rs 6.3 crore from Rs 19.52 crore. Depreciation rose 6% to Rs 78 crore. PBT as a result fell 9% to Rs 315.29 crore. The effective tax rate rose 260 bps to 32.5% post, which the company's net profit was down 13% to Rs 203.44 crore.

The scrip is currently trading at Rs 472 on the BSE.