Indraprastha Gas (NSE:IGL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Indraprastha Gas Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Philip Capital Private Limited. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference is being recorded. I would now like to hand the conference over to mister Nathan from Philip Capital Private Limited. Thank you, and over to you, sir. Thanks, Manav. Good day, ladies and gentlemen. On behalf of Philip Capital India Limited, I welcome everyone to Indraprastha Gas Limited's first quarter FY 'twenty seven earnings call.

0:52 Today from the management team, we have with us Mr. Kumar Shankar, who has recently taken the charge as MD of IGL. Congratulations to you, sir, and our best wishes for your tenure at IGL. We also have with us Mr. Mohit Bhatia, Director of Commercial. Pleasure to have you with us, sir. And Mr. Manjeet Golati, who has recently been appointed as CFO at IGL. Congratulations to you as well, sir. I shall now hand over the floor to the management for their opening remarks, which shall be followed by a question and answer session. Over to you, sir. Yes. Thanks, Nitin. Very good evening to all of you. I am Kumar Shankar. As Nitin was mentioning, I have recently taken charge of Managing Director of Indraprastha Gas Limited.

1:42 On behalf of management team of IGL, it's my pleasure to welcome you all for our earnings call on this financial results of Q1 FY twenty six-twenty seven. Thank you for your continued trust and support and for joining us today. As you all know, the quarter was challenging due to the ongoing geopolitical situation in West Asia, which impacted global energy markets and created pressure on gas availability as well as prices. But despite these challenges, IGL continued to operate smoothly and ensure uninterrupted gas supplies to all our customer segments. We'll be happy to note that about half of our gas requirement during this quarter also was met through domestic sources, which helped us maintain gas supply reliability.

2:33 And our company has continued to demonstrate resilience through disciplined execution and clear focus on our long term goals. Before we begin the Q and A session, let me briefly share some of the key highlights of our performance during this quarter. With our continued efforts, we have achieved average daily gas sales volume during this quarter at 9,660,000 standard cubic meters per day as against 9,130,000 in the Q1 of the previous year. Our overall sales volume of CNG net of DTC and DI MMPS had actually increased by around 11% with overall 9% decrease in CNG sales in Delhi and double digit growth in all the other remaining three states.

3:28 So in fact, we'll be glad to know that in recent days, we have touched a peak sale of up to even 58 kg in a single day, which is not only among the highest for IGL in its history, but also definitely the highest in the country for any CBD company in the country. And also you'll be glad to know that during this quarter, we have achieved the milestone of the highest ever quarterly turnover of more than rupees 5,000 crore. And as far as our CapEx, we continue to invest in expanding and strengthening our P and G infrastructure and our domestic P and G customer base has already reached around 35 lakh plus connections, while industrial and commercial connections stand today at approximately around 13,600 connections.

4:18 With the planned expansion of our pipeline network and change stations through our ongoing capital expenditure, we believe it will support our company's long term and sustainable growth. During this quarter, the company reported an EBITDA of INR $2.96 crore and a profit after tax of INR 186 crore. Despite higher gas costs and supply challenges arising from the global situation, we remain profitable and continue to maintain stable operations during this quarter. We believe the long term fundamentals of CGD structure remains strong with our growing infrastructure, expanding customer base and disciplined approach to our business. We remain committed to creating sustainable value for all our stakeholders.

5:08 Now I would like to invite our Director of Commercial, Mr. Mohit Bhatia to share his remarks. Thank you. Thank you, Kumar sir, the MD. Good evening, everyone. I'm Ugarh Bader, Director of Commercial at Indraprastha Gas. I would like to first of all welcome all our investors, analysts and the members of the financial community joining us today. Thank you for participating in our earnings conference call for the quarter ended 06/30/2026. Let me get the opportunity and privilege to share the key business developments during the quarter. So, first and foremost, to secure the proper robust infrastructure in NCR and in particularly Delhi.

6:04 So pleased to inform that we have recently commissioned a new one lower city gate station at Rohani, Delhi, which will improve the overall supply network and strengthen the infrastructure. We have already submitted our concern for the authorization for the remaining areas of Gurgaon and Faridabad and have technically started the technical feasibility studies for the development of these both the geographical areas. We have also commenced LNG operations that is the first and the foremost in NCR region in association with Concord and had commissioned the newly operational CNG station at the prestigious Noorda International Airport along with PNG in the Foquot area.

7:05 Going forward, we are also pleased to inform that we have engaged with Indian Army in a nation building exercise to explore the opportunities to meet their integrated energy requirements in our geographical areas in their cantonments. As our Managing Director has highlighted some of the points related to geopolitical situation and also financial performance of the company, let me add some perspective from my side on the company's performance. Overall, the sales volume increased to about 6% as compared to the last quarter of the last year.

7:51 And if we look from the perspective of Delhi NCR CNG sales, yes, it has grown by 9% as the Managing Director emphasized. And barring DTC and DIMMs volume, that is 9%, whereas a healthy growth of around 27% observed in our newer GIs outside Delhi NCR. On the overall basis, almost there is a 50 incremental sales, which is coming from the new years. In terms of infrastructure development, our steel network expanded by approximately 25 kilometers, now further adding to around 2,600 kilometers, while the MDP pipeline almost increased by 500 kilometers during this quarter.

8:43 So we have also added almost one lakh plus P and G customers during the current quarter and almost five thirty plus additional industrial and commercial customers, adding to our robust growth. On the financial front, once again pleased to inform that we have ever achieved the ever highest INR5028 crores of the turnover, which is almost 16% as compared to the same quarter last year. While the profitability is impacted by higher gas costs during the quarter, our focus remains on volume growth, customer expansion and operational efficiency.

9:33 During the quarter, we also had incurred a CapEx of INR327 crores. We are witnessing a very healthy growth in the CNG vehicle segment. Over the last six months, and particularly, CNG vehicle additions and conversions have arranged almost to the tune of 27,300 vehicles per month vis a vis 18,000 vehicles per month during the same quarter for the last year, which gives us immense confidence that CNG demand will continue to grow in the coming quarters. On behalf of the management, I assure you that we remain focused on sustainable growth, expansion of our market presence and delivering value to our customers and stakeholders while adapting to the changing business environment.

10:31 With this, I welcome you once again and open the session for the question and answers. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the attached tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. We We have our first question from the line of Rahul Singh from ICICS Securities. Congratulations for the innovation for taking the new role from both of you.

11:22 I just have first question with respect to the sourcing mix. If you can kindly give us mix in terms of percentage and absolute volumes between whatever was the ATM allocation, HPSP gas, fuel gas and the mix between long term and short term amenities, whatever it was for the company. Okay. Thanks for the question. So, the current scenario in the current scenario, we see the breakup for the Q1 for the this financial year. Still, we have around 48% coming from the domestic allocations, whether it is APM, U. L. Or HPHT, and around 52% is coming from the imported that is through our long term contracts and somewhere through the spot also because of the force majeure issues you know happened in West Asia.

12:21 So, if you see the around we are selling around 9,500,000 of standard cubic meter of gas. So 48 is coming from the domestic and around 52% from the imported. Thank you, sir. Is it possible to share of that 52% what was the mix between long term and spot? And also broadly speaking, what was the effective price at which we could get started in this for the quarter? See, if you see because of the long term contracts, already we are in place 100% of our sourcing, however, due to the force majeure issues and all, so there has been some cuts. Yes, it is there. So almost around 4,000,000 out of the $5,000,000 sourcing, which is being done from the importers, so around 3,900,000 to $4,000,000 is from the long term contracts.

13:26 And there was a government has supported during this quarter in terms of giving pool gas to the CGD sector, particularly as per the government notification. So around 0.6 to 0.7 came through the pool gas And spot, we had to rely around 3%, you can say, roughly around 250,000 to $300,000 per day was through spot. And market trend, you have must have noticed that it varied from around $17.18 dollars to $21.22 dollars As and when it's required, we have to source it. Got it, sir. And just in terms of how we are looking at facing going forward, what is the environment? Have you seen since the conflict has once again sort of picked up? Have you seen a change in terms of energy availability?

14:18 Are we able to get slightly more contracted LNG in the market today? Or does it remain still a fairly tight market? Just your thoughts on this. So very, very highly unpredictable and uncertain situation. You are aware of the geopolitical issues. We are in constant touch with our suppliers, the promoter companies also and whereas whatever best we could source it from the market. So we are in constant touch and some indications are there whatever has been the cut due to force measures because as globally India has also gone to other geographies to source the gas.

15:05 And it has been there. So long term, yes, spot will be there a little bit. But I think if we are able to get the gas from our long term contracts, our aspiration, our vision is that. So, I think we are taking up with our upstream suppliers and something should be better. And as we go forward, we are looking at HPST as well. So we are hopeful that we'll be in a position to improve the overall share of HPST as well going forward. About RLNG already better commercial has already mentioned. Right. One last question, if I may. Given the unpredictability, how should we look at the margin scenario going forward? Is there sort of a flow of... Are you looking at product pricing figures to sort of pull up the margins if prices remain at the highest end of US, I mean, 15 to $16?

16:08 How are we looking at the margin environment for the most of the month now? So sir, actually, I would like to answer your query in two parts. See, point number one is that we have always giving guidance of a long term EBITDA around INR 7 per HCM. So yes, there is a geopolitical issue across the globe and margins are under the stress. So our still long term guidance is similar, but in the subsequent quarters, will be difficult viewing because we do not know what is the overall geopolitical impact on the country and in particular to the CBD sector. So that is point number one. Secondly, we have been always like a long term guidance was there that we want to calibrate in terms of both the sales growth versus margin.

17:05 So we are trying to maintain a good delta with alternate fuels, particularly petrol and diesel. And still, there is a handsome delta with petrol in particularly around 17. And with the GST 2.0, it has become really conducive and favorable for the CNG automobile sector and the tremendous growth has been witnessed and to further leverage, think it a time to seed the market to further strengthen and capture the volumes also. See, I would like to add one more thing also. Margins of course is a function of the input gas prices more so the current kind of volatile LNG market.

17:55 But next six months, believe four factors we need to figure out how they will play out. First is, in general, there is a consensus that The U. S. Supplies are going to improve. So, the India, the expectation is that it would be kind of stable. The second part is of course geopolitics nobody is able to predict what is going to happen to the supplies from The Middle East. Then about the kind of consumption pull factor from China, Japan, how it's going to play out, one needs to wait and watch. But the other aspect is how the European gas storage is going to be there and the kind of winter.

18:43 In all these things, there are also talks about whether this El Nino is going to become a super El Nino. And in case of that, then there could be a moderate winter. So if you really see today in these wired worlds, how different factors are going to play out, it's right now quite difficult to predict. But as our data commercial has just now mentioned that so what we are focusing on is the signals that we are actually going to cater to. We have a reasonable belief that we will kind of reiterate that we have, particularly with respect to petrol diesel and all that. So we should be able to keep it on the balance.

19:30 Thank you, sir. I appreciate how challenging the environment is and I appreciate your efforts to explain you know, to answer as I said before. Thank you, and all the best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, Please limit your questions to only two per participant. Should you have a follow-up question, we request you to redirect the queue. We have our next question from the line of Yogesh Patel from Dollar Capital. Please go ahead. As you mentioned earlier that 48% of the gas sourcing is from the domestic sales or domestic side, like APM and WG, HBST.

20:17 To our knowledge, earlier quarters, it was around APM, around 3.3 SCMD. HP... HPST was point eight SCMD, and NWG was around point nine SCMD. So just wanted to have a little bit granular understanding on this. How much it is how much you have received in a Q1 FY 'twenty seven, all these three types of the gases? And what is the current status of this domestic sourcing part? So there has been a little bit, I would say, reshuffling of APM and NWG in the last quarter and going forward also. So as I mentioned, around $2,600,000 last quarter average was APM and 1,260,000 was The U. S. Gas.

21:13 As compared to the previous quarter, you are rightly, it was NWG was less than $1,000,000 So there has been some changes in the proportion because of the geological issues of the wells across the country and there has been some shift in the new oil gas. And going forward also likely to happen in this way only. HPHT portion remains same, sir, 0.8 MMseMD during the Q1 FY 'twenty seven? So HPHT, it was around 0.7, 0.66 to 0.7 and it's likely to increase because we understand that certain contracts across the country are going to close likely to be closed in September and there will be some bids offerings coming in. So we'll be also trying to capture it aggressively going forward.

22:12 Sir, my next question related to the CNG consumption figures for the DTC buses, DIMMs buses in million kg, if you could provide? And additionally, please provide the total CNG volume for this quarter in million kg. Okay. So as we mentioned in our opening remarks also, see, BIM DTC volumes are now almost zero. For last three months, if you see, it's almost now zero. And the last year same quarter, it was on an average of 1.5 lakhs kg per day. So now it is almost zero.

22:58 However, secondly, if you see the dense volumes, so now as compared to the Q4 of the last year as and in comparison to the Q1 for this year, the volumes are more or less same. It is maintaining at around 1.5 lakh kgs per day. And CNG volume in million kg, sir, if possible? Total CNG volume in million kg? So in terms of 1,000,000 kg, it is around 5.31 per day for the quarter ended June 30. Thanks a lot, sir. All the best. We have our next question from the line of Amit Murarka from Access Capital. So I missed if you've already shared the split of growth between Delhi and outside Delhi that you usually share in earlier quarters.

24:17 So I'll just for your consumption, I'll just repeat. So overall growth in CNG is 6% across IGL. If you see Delhi, barring DTC, it is around 9% and barring DTC, entire IGL is 11%. And if you see in particularly the outside or the new years, it is 27%. Okay. Got it. And for DTC, you said that now the volume for the buses is stabilized and there's no further decline that you're expecting on that count, right? Yes, you're right. It has almost now come down to zero almost, maybe hardly 100,200 kgs per day. So for practical purposes, we can take it as zero now, BTC.

25:14 Now given that the vehicle registration is still going very strong, So then the CNG growth now, can we expect to kind of get close to maybe double digits or go to maybe 12, 13% rate also in the coming quarters then? See, absolutely. See, if I tell you, recently, you must have seen the ET Prime news also, in particular, if I share with you one of the July data, so almost around 4.6 lakhs passenger vehicles were added in the month itself of July. And Maruti in particularly has claimed that out of the new vehicles which have been added, almost 42% of their vehicles are CNG based.

26:06 So yes, you are right, CNG is expected to grow in a very, very aggressive way subsequent to the GST cuts 2.0. And we are also witnessing the same in our outside years, it is growing at say 27%, very, very healthy. And in Delhi also around 9% to 10%, barring the DTC, although the base is very heavy, so maybe a percentage of growth you cannot correlate actually, but seems to be otherwise very, very healthy. Okay. Okay. Understood. Just lastly, also on the various changes which had happened on the gas cost side, like the changes around the transmission zonal tariffs and as well as a change in the Gujarat GST related changes.

27:05 So all those the benefits are now in the sourcing mix, right? I mean, the current cost that you see on natural gas is reflecting all of that benefit in the numbers? Yes, they there. That's right. But because of this unusual volatility in the light of West Asia crisis, that is a bit kind of what do you say masked by the current situation, which we expect that once it eases out, positive effects of that would be more pronounced. Understood. Sure. That's it from me. Thank you very much and best wishes.

27:51 Thank you. Thank you. We have our next question from the line of Vivek Anand from Ambit Capital. Please go ahead. Yes. Thanks for the opportunity. Two questions. Number one is on the Delhi EV policy that was recently announced. Now since this impacts aggregators, commercial vehicles, both auto rickshaws as well as goods carriers and also school buses, how are you looking at the impact of this on your volumes in in Delhi? And secondly, if you could give us some color on the split between these vehicle segments that are impacted or covered by the Delhi policy, that will be great.

28:40 The second question is if you can just help us with the volume trends year on year numbers for MNGL and CUGL and also absolute MMSE in the volume. Thank you. Okay. So coming to the the Delhi EV policy. Yes. You are right. That mandate has already come. So effective 01/01/2027, there will be no more three wheelers in particularly registration and only EV registrations will happen. But we have evaluated and analyzed, although we are doing our advocacy meeting Delhi government and other stakeholders also in revoking or continuing the CNG part.

29:33 But we do not see the much larger impact because only one lakh autos are there, three wheelers in Delhi and viewing the life of fifteen years, think phasing out every year 5,000 to 6,000 will only happen. And as per our analysis around there will be a less than one percent impact in the overall CNG volumes in 2027. And going forward, the impact may be less than 3% by 2030. Similarly, on the commercial vehicles, yes, the new registration again will start from 127.

30:23 And for school buses also, I think the mandate is by 2030, they have to switch over 30%. So overall, we have evaluated the scenario of the sales volume being lost vis a vis being added through the natural growth, in particularly with a very, very strong segment from the passenger car vehicles, the expected growth is coming. So by 2030, I think there will be an impact of around 2% to 3% on the volumes overall. And we are not viewing any much of the impact. And to your second question on how CUGL as well as MNGL have been clocking the growth.

31:10 First on CUGL, CUGL has corresponding quarter to quarter growth in terms of CNG, we have clocked 8% growth from around 0.23 MMBcmd to 0.25 MMBcmd. And P and G almost have maintained similar volumes of 0.11 to just 0.12. But overall from 0.34 to 0.36 MMWcinders we have clocked, which means 6% growth we have witnessed. But when it comes to M and G, slightly more encouraging numbers have been clocked. In CNG, MNGL has clocked 13% growth from 1.27% in MNGL to 1.44%. But when it comes to PNG, MNGL has clocked a very healthy year around 29% growth from 0.58 MMScMD to 0.75.

32:06 And overall put together from 1.85 MMScMD, they have clocked 18% growth to reach 2.19. This is primarily driven by corresponding quarters the previous year and this year, Nashik GA has started getting direct gas supplies from the commissioned newly commissioned Samariti pipeline. Earlier, their Nashik GA was completely fed through LNG mode. So that had given them the good base. And now with the pipeline there in place, the PNG growth is witnessing a very healthy trend. So yes, so they have clocked around 18% volume growth overall. Right.

32:51 Thanks for the color. Just one follow-up. As far as the Delhi policy goes, there is no impact on the NCR territory outside of the national capital Delhi. Right? Is that is that very clear? Absolutely. It is particularly for Delhi only. So I don't think so there is any impact on Noida or maybe Gurgaon part. Right. Right. And just one last follow-up. CUJR now. Yeah. As of now. Exactly. Sorry? Okay. My last question is, CUJR's volumes have been stuck in a rut even in FY '24...

33:37 I mean, FY '23, '24, '25, the volumes were in the range point three one to point three three MMS, CMD. Why is it that these markets like Kanpur, Barely, etcetera, where you would assume that CNG is underpenetrated? Why is why are these markets not growing faster? So as usual, in fact, they have a clocked reasonable 8% growth. Yes, I agree that they do have potential for this thing. But yes, with the improvement in the overall CNG cost, some of the vehicles are improving, right? I guess and also they're coming up with more stations.

34:27 I think in the coming quarters, I think we should be able to see more growth there. Plus, the overall input lag cost and the gas price scenario also those kind of places may be a bit more price sensitive when it comes to their industrial and the tax structure also is adding to their woes. So I think that could be one of the reasons where when it comes to the P and G growth, particularly C and I, the tax structure is not very favorable. But I think C and G going forward should be able to show some more improvement. Okay. Thank you so much. All the very best. Thank you.

35:15 Thank you. We have our next question from the line of Gagand Dixit from IRDA Capital. Please go ahead. I have a question just about given the sharp gas cost spike. So is IGL considering any hedging or long term contracting strategy, I mean, to reduce this spot LNG exposure going forward? Yes, of course, like any other entity we are looking at it. And then we are in fact looking at hedging options as well, particularly because Henry Hub now provides us with the opportunity.

36:02 It's a bit stable right now. So yes, we are looking at hedging as an important tool as a part of our overall strategy. In fact, in the month of May, we have already started because in the month of May, we did have some opportunity with reasonable price band available. So we have started doing that. And yes, we will be continuing to do that. Thanks, sir. And sir, my second question is, as the new geographies outside the value NCR, they are still ramping up. So typically, are they EBITDA per SEM slightly dilutive versus the mature geographies value, NCR?

36:48 Broadly, what is the difference between the new geographies and the mature geographies in the broadly in the EBITDA per SEM, sir? No, I believe. EBITDA per Centimeters, if we see the major geographies, we are getting slightly better EBITDA per Centimeters because of concentrated sales and better volumes. In terms of new geographical areas, actually it more depends upon the taxation structure also to some extent. And as and when they get matured and the sales get start increasing, we find that economies of scale or benefits coming to those areas. So those new years which have started maturing like De Wari, we are getting a better EBITDA there. And in the conscious process, the more the sales is, the better the EBITDA will be.

37:36 Yes. So that's answer, sir. Yes. All the best, sir. Yes. Thank you. Thank you. We have our next question from the line of Saurabh Handa from Citigroup. Please go ahead. Yes. Thank you for the opportunity. This is a follow-up from a question by one of the other participants. If you can just give a breakup of your vehicle wise sales of CNG, roughly like how much comes from buses, private cars, autos, etcetera? Yes, yes. So I'll give you just a second. Yes. So from the buses, okay, So buses, our volume is coming around overall around 12%.

38:32 Then commercial vehicles, it is around 19%. Taxis, it is around 14%. Three wheelers auto is around 7% to 8%, and primarily, it is from the passenger car vehicles to the tune of around 48% to 50% out of our $7,000,000 you can say, the CNG sales that way. Got it. So on autos, when you said 7% to 8%, so the Delhi portion of this will be like 3%. Is that what you were trying to imply? So no, no. I I was trying to say that because the phasing out will happen in a span of fifteen years. So no more new registrations will happen, but the phasing out will happen because there will be a change of the permits also.

39:27 So every year, like 5,000 to 5,000 something vehicles will go back, but they'll be out of the system. So by 2030, we are expecting around maybe less than 1% in particularly the auto sales. So this 6% to 7% will keep on reducing after every five years, maybe 2% to 3%. It will be like that. Okay. And so this 7% to 8%, would you have an idea how much actually is just the Delhi portion of it versus in... Primarily, is Delhi only. Primarily, you can say around 70% to 80%, it will be Delhi only. Okay. Got it. And my second question was on this Gurgaon, Faridabad, right? You made some comments initially on the areas that are not authorized to you that you I have sort of missed that. Could you just elaborate on that?

40:24 So we have been contesting. There is a litigation going on, but conditional part of the area, which has been given to us by the regulator, we have already accepted and going forward for developing, because in the interest of the consumers, to deprive them from the natural gas, whether it is pipe natural gas or CNG. So that internally, the company has taken a call to conditionally accept and develop going forward. Okay. So just to clarify, even the areas that are not, say, in Gurgaon, the areas that are not authorized to IGL, but you have got some conditional approval to even expand your network in these areas. Is that correct? They were authorized to IGL, but we have not accepted in the past because of our litigation going on and we have been contesting at various forums.

41:28 But now being viewing the push in the natural gas, particularly in the pipe natural gas as well as growth anticipated in the CNG, because NCR is also it's a very, very growth potential area. So conscious call has been taken and we have accepted conditionally to move forward. Okay. So that means in the entire Gurgaon region now, you would be Not the entire Gurgaon. I'll make it clear. Actually, see, within the entire Gurgaon, part of the area was already earmarked only for IGL. Earlier that portion was also since our claim was that the entire Guruvaram is for IGL, the part portion, the services were not commenced.

42:24 But now given the situation right now and then why to deprive of the people who are there in those part portions for their share of gas. So that part portion we have started commencing the services, but not the entire one. Okay. That's clear. And then Faridabad, then... Sorry to interrupt you, Saurabh. Maybe the question to rejoin the queue. Sorry. It's just the same question. I'm just clarifying. Sure. So in Faridabad, this... There was no part authorization. Right? In Faridabad, it was completely out of IGL. Yes. Yes. So we'll be developing that. Partly is with us and partly... And, majorly, it is with somebody else. Right. So nothing very different from what the situation was earlier. So just wanted to confirm that. I got it. Thank you, sir.

43:17 Thank you. Next question is from the line of Mayank Maheshwari from Audit Stanley. Please go ahead. Hi, sir. Thanks for doing the call. The question I had was more related to your growth strategy around inorganic growth. Considering the Delhi EV policy and increasingly more focused on the EVs, how are you kind of thinking about inorganic growth opportunities to consolidate the entire market? See inorganic growth, right now, CGD sector in terms of newer authorizations also, it's relatively new.

44:06 So as and when opportunity presents, we would be able to look at those other areas as well. But the general policy framework is still evolving related to how they open up the other areas, one remains to see. But at this stage, we believe that even in our own newer GAs, there is a good scope as you can see in our the kind of growth that we have been achieving in our newer GAs. So progressively their share is already improving. So we are right now focusing on to expand our operations in newer GAs. So sir, in terms of CapEx now going forward, if you can give us a guidance, is there a step change increase in CapEx because of this focus on natural gas and PNG or you think the current run rate will kind of sustain?

45:02 So you're right. I think first quarter, we have spent around INR $3.27 crores and our plan or the expiration, there has been certain changes definitely because of the thrust on the P and G infrastructure development and going forward. So around roughly around 1,800 to 2,000 still our aim is like that only and spending around 1,200 to 1,300 or maybe maximum 1,500 on the core. And if we get some other opportunities for the business development diversification, we'll have another $5,600 there also. Got it. Thank you. Thank you.

45:54 We have our next question from the line of E. A. Sundaram from Birchall Rock Capital. Please go ahead. Yes. Good afternoon, sir, and thanks for the opportunity. My first question is, there have been a couple of major developments initiated by the Delhi government, and that has caused some sort of apprehension in the mind of business. One is lack of registration for auto discharge going forward. And the second one was the moving of the DTC buses from CNG to electric. So my question, sir, is there any indication or any move that you are aware of that the Delhi government may employ a similar policy on four wheelers also? And do you see any indication of that?

46:40 And the follow-up question on the first question is, sir, what is the proportion of P and G vehicles in the new four wheeler registrations in the Delhi area in the recent months? Can you provide on that? Yes, yes. So I will answer your question first. The second part, see what data, what we have or what we have analyzed, so the new registrations which are happening particularly in Delhi, almost passenger vehicle, 42% of the passenger vehicles are being registered on CNG. This is in the current scenario. You can see you can take it in the last six months or so. That is point number one. So overall, what data we have, if we see the entire vehicle population of Delhi and NARO, so it is all 24% to 25% on P and G.

47:31 Secondly, see, we have been advocating at various forums and what we understand, whether it is at the ARI level, whether it is at ICAT level, whether it is at CAQM level or whether it is with Delhi government. See, going forward, all the fuels are going to coexist. In the current scenario, viewing the geopolitical situations and all, energy security remains topmost priority. And it there will not be a shift on a single energy fuel, whether it is conventional fuels, whether it is a CNG as a transition fuel or it will be EV. So it will be a mix of all the fuels. And going forward, we are anticipating very, very robust growth from P and G, particularly on the basis of the information or data which we shared with you.

48:33 Okay. The second question is, yes, of course, this war in the West Asia has caused some disturbance in your margin profile. But we are also seeing that after June, there has been a sharp fall in global natural gas prices. So can you share with us what was the average cost of gas per cubic meter that you had in the first three months of the financial year? And what does it mean in July? What is the cost of gas that you're having in July? See, I think it will be very, very difficult because these are some of the commercial terms and all. But just as a guidance and all, it is hovering around first quarter around INR 40 to 45 per HCM, you can say.

49:27 July onwards, still the turbulence is there and there has been some increase. Yes, it is. But it will be difficult to get into the nitty gritty view of viewing the commercial proposition. So it will be a little bit... But I'm asking this because you were confident of returning to the EBITDA per STM of about INR 7 to between INR 7 to 8 crores. That is the reason I'm asking So sir, I had already see, we had already mentioned, and I think it was a guidance for a long term for the going forward. It is not in the immediate quarter or maybe like that. Yes, our exploration guidance is always there to be there. But in such unpredictable and volatile situation of the geopolitics, it will be very, very difficult to comment for the quarter.

50:23 Okay. Okay. My other question sir is, is there is we saw one report by where one of the recommendations of that of that of that report was that natural gas should be brought under the ambit of the GST. Is there any such move that you are aware of that you can share with us? Actually, the Ministry of Petroleum and Natural Gas has consistently been supporting. So within the government setup, you know, when when the administrative ministry is strongly supporting for a particular cause, that's a good sign. But GST, as you would say, it also it's a both central as well as a state kind of subject.

51:09 So it would be very difficult to make any second guessing whether anything would come up. It's very difficult to say because it's the kind of within the GST councils, Prajakar. I understand that. But I just want to know this. I know that kind of of available evidence to suggest that there's any big change is happening there. See, my final question sir is about one of the points made in in in a previous question, which is made by the management sometime ago. Sorry to interrupt you, sir. Due to shortness of time Then we can just have this last question.

51:56 Will repeat your question, please, sir. Okay. Okay, sir. Okay. Thank you. See, my question is, you know, it it was mentioned that there is the... Originally, the entire program was awarded to IGL, but then it went into some litigation. I I I I... If I remember correctly, was because of some valuation issues that it went into litigation. But now IGL has been awarded one third of Gurugram. Is there is there... The other two parts of Gurugram, are they still under litigation, or is is there any chance that that part will come into IGL bandwidth in the future? Is there is there any possibility of that? Yes. You... See, it is like that that still it is under litigation, and we are contesting because initially as per the central government authorization, it was too ideal and we are contesting forward. We have not at all surrendered as such.

52:58 See, but one point what we need to remember is, even the portions where right now is disputed and the other party is operating, but the gas is still in a bulk basis, we are procuring from IGL only. So to that extent, the molecules actually still are going through us only. So we need to understand that. But in future, from a strategic point of view, you start owning that retail consumer base, that's the thing that's going on. But you need to keep that also in your mind. Yes. But there's nothing like having the final... Yes, you are right. But just adding that point to that. So that's how it is. Okay. Okay. Thank you. For positive time, I'll here. I'll allow the others to ask you.

53:49 Thank you. Ladies and gentlemen, due to time question, that was the last question of the day. And participants whose question have remained unanswered may approve mister management. I now hand the conference over to the management for closing comments. Over to you, sir. Good evening to all of you. I, on behalf of the IGL management, would like to thank all of you for participating in the earnings call for Q1 twenty twenty seven. And special thanks to Cliffs Capital and Nathan for organizing this for IGL. We'll see you soon shortly somewhere in the next conference or maybe in person. So thanks to all of you for joining. Thank you, sir. On behalf of Philip Capital Private Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

54:39 Thank you. Thank you. You.