Indraprastha Gas firms up on buzz of CNG price hike

Meanwhile, the BSE Sensex was up 23.54 points, or 0.12%, to 19,807.62.

On BSE, 64,000 shares were traded in the counter as against an average daily volume of 67,258 shares in the past one quarter.

The stock hit a high of Rs 262 and a low of Rs 256.60 so far during the day. The stock had hit a 52-week high of Rs 394.05 on 10 January 2012. The stock had hit a 52-week low of Rs 170 on 10 April 2012.

The stock had underperformed the market over the past one month till 4 January 2013, falling 4.66% compared with the Sensex's 2.25% rise. The scrip had also underperformed the market in past one quarter, falling 2.98% as against Sensex's 3.81% rise.

The mid-cap company has an equity capital of Rs 140 crore. Face value per share is Rs 10.

According to the report, Indraprastha Gas (IGL), the sole supplier of CNG (compressed natural gas) in the national capital region, on Friday, 4 January 2012, raised the fuel's price by Rs 1.55 per kilogram (kg) in Delhi and Rs 1.80 a kg in the satellite townships of Noida, Greater Noida and Ghaziabad.

As per report, CNG in Delhi would now cost Rs 39.90 per kg. The price would be pegged at Rs 45.10 per kg in Noida, Greater Noida and Ghaziabad, where the increase is higher on account of higher state taxes.

Report suggested that IGL had to raise the price as the share of gas imported in ships in its sales has risen substantially. The company has to sell more imported gas, which costs about three times more than domestic gas, to bridge shortfall in domestic supplies in the wake of drop in output from Reliance Industries' Andhra offshore field. Moreover, the price of imported gas too has risen substantially in recent times, report added.

Indraprastha Gas' net profit rose 28.48% to Rs 99.21 crore on 43.2% increase in net sales to Rs 854.64 crore in Q2 September 2012 over Q2 September 2011.

Indraprastha Gas' is the sole supplier of CNG and PNG in Delhi, Noida, Greater Noida and Ghaziabad.

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