Indraprastha Gas spurts after favorable Supreme Court ruling

Indraprastha Gas jumped 11.3% to Rs 465 at 12:24 IST on BSE, after the Supreme Court of India pronounced the judgement today, 1 July 2015 and dismissed the Special Leave Petition of Petroleum & Natural Gas Regulatory Board.

The announcement was made during market hours today, 1 July 2015.

Meanwhile, the S&P BSE Sensex was up 206.53 points or 0.74% at 27,987.36

On BSE, so far 8.96 lakh shares were traded in the counter as against average daily volume of 35,661 shares in the past one quarter.

The stock hit a high of Rs 486.65 and a low of Rs 425.05 so far during the day. The stock had hit a record high of Rs 488.30 on 22 January 2015. The stock had hit a 52-week low of Rs 340 on 9 July 2014.

The stock had outperformed the market over the past one month till 30 June 2015, rising 2.94% compared with 0.17% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 0.17% as against Sensex's 0.7% decline.

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

Indraprastha Gas said that the company is awaiting full text of the order by the Supreme Court.

The Supreme Court was to give its decision on whether or not the Petroleum and Natural Gas Regulatory Board (PNGRB) has the powers to decide the transport tariffs of gas companies in its verdict today, 1 July 2015. PNGRB regulates downstream transport tariffs for oil and gas.

The case relates to April 2012 when PNGRB had directed Indraprastha Gas to reimburse prices to its retail consumers with retrospective effect of five years. Indraprastha Gas was directed to return almost 60% of the tariffs charged in the previous five years. IGL challenged the order in the Delhi High Court, which accepted the company's contention

In 2014, PNGRB had challenged the Delhi High Court order in the Supreme Court, saying while it has no power to control the final retail price, it has complete jurisdiction on fixing network tariffs of companies. However, Indraprastha Gas claimed that PNGRB cannot control network tariffs of companies which are present in the entire value chain of supply and distribution.

Indraprastha Gas' net profit rose 6% to Rs 95.88 crore on 5.3% decline in net sales to Rs 912.91 crore in Q4 March 2015 over Q4 March 2014.

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

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