Indraprastha Gas (NSE:IGL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Indraprastha Gas Limited q two FY twenty seven earnings conference call hosted by Dollar Capital Markets 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 after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to you,. Thank you and over to you, sir. Thank you, Saisha. A very good afternoon and happy Diwali to the management of IGL and to all analysts.

0:46 I would like to extend a very warm welcome to all the participants and the top management of IGL who are on this call. I would like to especially welcome mister Kumar Shankar, managing director of IGL, mister Mohit Bhatia, director commercial, and mister Manjeet Bhulati, CFO. I will hand over the floor to mister Kumar Shankar for their initial remarks over to you, sir. Yeah. Thank you, Yogesh. Very good evening and a very happy and safe deep ally to all of you. I am Kumar Shankar, Managing Director of Indraprastha Gas Limited. On behalf of IGL's management team, it's my pleasure to welcome you all to our earnings call for the financial results of Q2 of FY twenty six-twenty seven.

1:36 At the outset, thank you for your continued trust and support and for joining us today. While the current quarter has been challenging from a financial perspective, let me begin on a positive note. IGL has been conferred with the P and JRB Excellence Award 2026 for the overall performance in the city gas distribution sector. The continued geopolitical situation in West Asia and its consequent impact on global gas prices and supply chain reliability has directly affected the sector. So at this stage, it will be premature to speculate on the duration or full economic implications of this situation as we all know, but much of it will depend on how quickly the stability returns and normal shipping movements, particularly across home goods could be restored.

2:26 Coming to IGL's performance in Q2, we delivered a robust volume growth with the company registering 8% year on year growth on both the CNG and P and D front. So it's kind of a balanced positive growth rate in both the services, CNG and P and D services. At the same time, input gas costs have increased considerably during this quarter, which mainly impacted the profitability of the company. The share of spot in our overall gas mix has also increased significantly in this Q2 as compared to Q1. This was actually primarily due to the continued force majeure situation with respect to the term LNG contracts. And because of that, the continued curtailments in the long term LNG supplies.

3:13 So of course, because of this, in addition, we have to also procure relatively additional spot gas to meet the increased growth that we are achieving and we have clocked during this second quarter. So we're continuously monitoring the situation and evaluating various measures to manage the input gas cost. All possible options and levers are being considered with a view to restoring margins, of course, at the same time sustaining our volume growth. We believe that the situation should improve as supply conditions normalize. Government also has been taking steps, including changing the allocation methodology for the high pressure high temperature HPST gas, under which allocation going forward would be proportionately increased based on the actual gas consumption in the CNGT and PNGT segments being achieved by the individual entities.

4:06 So we also remain engaged with the evolving gas supply environment, and we'll continue to optimize our gas sourcing mix as well. So during this quarter, another positive development is the release of theory report, which was released by a special adviser to the Prime Minister. And the theory report had a multidimensional factors study, and it covered technical, environmental, economic, social and geopolitical aspects. And after considering all of these factors together, the report has actually it finds that CNG currently retains and it continues to retain a strong position across passenger segments, namely cars, taxis, L series. And it concludes that it can serve as an important intermediate pathway towards the year 2050.

4:53 This is primarily because of the fact that the CNG services is supported by good existing infrastructure and its already good technical readiness, its superior environment performance, its user acceptance and, of course, the competitive operating costs. So now let me very briefly share some of the highlights of the performance during this quarter. So with our continued efforts, for the first time in IGL history, we have achieved an average daily gas sales of $10,060,000 So this is the first time the average daily sales of a quarter has crossed $10,000,000 of GMV. This is, I think, the first perhaps for for any CGD in the country as well.

5:41 So this is as compared with the figures of $9,310,000 of GMV in Q2 of the previous corresponding year. Our overall CNG sales volume, of course, net of DTC and DAMTS operations also increased approximately 10%. So during this quarter, IGL also touched a peak CNG sale of 59 lakh kg in a single day as well. So we achieved another important milestone during this quarter, recording our highest ever quarterly turnover of more than INR 5,500 crore. So this half yearly numbers also correspondingly has already crossed INR 10,000 crore. So we continue to invest in expanding and strengthening our infrastructure, not only to support government's P and G Drive two and three, but also for our strengthening our own robust infrastructure.

6:27 So we incurred capital expenditure of around INR $7.12 crore during the first half of this year, and we are planning broadly to invest equivalent levels of CapEx during the second half as well. So despite the near term pressures on input gas costs, our focus remains clear, that is to sustain the volume growth momentum, strengthen our infrastructure, optimize our gas sourcing mix and take appropriate measures to improve margins. So thank you once again for your continued support. I would now like to invite our Director of Commercial, Mr. Mohit Bhatia, to share his opening remarks. Thank you. Thank you, Kumar Shandrajee, Managing Director. Good evening, all. At the outset, a very, very happy Diwali to all of you. I'm Mohit Bhatia, Director of Commercial at Indraprastha Gas. I would like to welcome all our investors, analysts and members of the financial community joining us today. I sincerely thank you for your continued interest and confidence in the company and for participating in our earnings conference call for the quarter ended 09/30/2026.

7:41 We believe that long term fundamentals of the CGD sector remain strong. What is particularly encouraging is the consistent and balanced growth across our all business segments. This reflects the strength of our diversified business model, the resilience of our operations and the focused execution of our strategy. As mentioned earlier, we have witnessed a robust volume growth both in the CNG and P and G segments. It is encouraging to see broad based growth across both these segments with CNG volumes growing at around 9% and P and G volumes growing by 8%.

8:29 Within P and G, the domestic volumes grew by 16%. Our commercial operations continue to focus on strengthening our market position, enhancing customer engagement and driving sustainable business growth. Despite the evolving market environment and prevailing industry challenges, we remain focused on improving our operational efficiency, optimizing our commercial performance and pursuing opportunities for long term value creation. Let me now share the few key business developments during the quarter. IGL is proudly announced, Kedvoinagar East and West, Nivireta Kunj and New Moti bag as Moti the LPG free zones with 100% P and G connectivity.

9:26 IGL has also initiated an automated vehicle verification system across CNG retail outlets to verify cylinder hydro test certification and strengthening onboard cylinder safety and compliance. We have also signed MOUs with Delhi Kent, several universities, institutions, railways, defense and other government institutions for exclusive P and G supplies and had entered into strategic alliances for technology advancements. In terms of infrastructure development, our steel pipeline expanded by almost 21 kilometers and our MDP network by almost eight twenty seven kilometers during this quarter.

10:16 We added one lakh domestic PNG customers and build almost more than 1.32 lakh new connections in this quarter. We have also connected five thirty seven additional industrial and commercial customers and added around seven new CNG stations in our portfolio. As the Managing Director had highlighted some of the key points relating to geopolitical situation and financial performance of the company, let me add some more perspective on our performance. Overall sales volume increased by almost 8% compared to the same quarter of the last year.

11:01 In Delhi NCR, the CNG sales excluding DTC and DENS volume recorded a double digit growth of almost 10.2%. CNG sales in our other newer geographical areas grew by 34%. On the financial front, we recorded a gross turnover of 5,600 during this quarter, representing an increase of approximately 26% over the same during the last quarter of the previous year. Profitability, however, was impacted due to higher gas costs during the quarter. IGL recorded a negative EBITDA of INR 31 crores, PBT of INR 9.5 crores and PAT of around INR 24 crores.

11:55 Despite higher costs and supply challenges arising from the global situation, we remain committed to our profitable and sustainable operations. We continue to see healthy growth in CNG vehicle segment. As during the last six months, CNG vehicle additions and converges have averaged to around 27,000 vehicles per month. This gives us an immense confidence in the underlying demand of CNG in the coming quarters, which is also demonstrated by the 25% registration of new vehicles into CNG during the month of July itself as a single month.

12:43 Considering the increase in the gas costs, appropriate pricing measures have been considered to manage the impact of the prevailing global environment and geopolitical issues and support business sustainability, including acceleration in the compressed biogas potential. With the PNG 3.0 launched by Government of India, the continued focus on PVD sector is clearly visible, and we believe these efforts will support the company's long term and sustainable growth plans. While we remain mindful of the evolving market environment and competitive challenges, we are confident in our ability to respond effectively and capitalize on emerging opportunities, including various diversification strategies.

13:41 On behalf of the management team, 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. With this, I welcome once again to open the session for question and answer. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking your question.

14:27 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of from ICICI Securities. Please go ahead. Thank you for the opportunity. Good afternoon. First question was with with respect to the gas sourcing mix. Can we get a detailed breakup in terms of the sourcing mix and the blended cost of each source for this quarter on an overall basis? Yes. I think the first question was very well expected because of the sourcing issue. So in an overall, if we see the situation, domestic is still around 48% to 50%, whereas in the domestic also APM and the renewal gas is almost around 4010% in particularly October, we got on the HPHT.

15:39 And while we still rely on the RLNG part as around 52%. However, in particularly during the last quarter, because of the force majeure issues and all, spot out of this RLNG was at 15%. And you are aware that the spot has really... Has increased in... Particularly in the last quarter. It was hovering around $22, and recently, now it is 30 plus dollars per MMBT. Got it, sir. So as a follow-up, if I can just ask, you mentioned about obviously mitigating measures that are being considered. But on a very simplistic basis, sir, given that as you mentioned, spot has already risen to almost $30 as of now.

16:32 If we do not take price increases across segment, is it fair to assume that even q q three will be as proper quarter from a margin perspective as q two work? See, I'll answer this in two ways. The first and foremost, you must be aware that government has intervened, and they had given some mitigation through allocation, enhancement, allocation of the HPST gas also, and which is being priced roughly at around $9.8 per MMBtu. So that is one part. Certain challenges are beyond control in terms of geopolitical issues and all due to force majeure issues and all, what will be there. However, price increase, we have to be very, very mindful in increasing the prices because we are investing a very, very robust growth in terms of in particularly CNG segment.

17:41 The numbers also I shared recently in the month of July itself, around 25% of the new registration vehicles in our area, particularly was from CNG. And unless or until we maintain the delta with petrol and diesel, term will be not favorable. And secondly, after a long period, including DIMMs and DTC also, we are envisaging a growth of around 8% in CNG. And if we rebar the DIMMs and DTC, it is 10% plus. And our outside GAs are having a very, very handsome growth of around 20%. So viewing the overall situation, short term, yes, it will be a pain.

18:27 But I think if we want to keep it as a long term strategy, volume unless or until volumes comes, it will be very difficult to sustain. I would like to add one more point here. Absolutely, just to add one more point that so our focus right now is to how do we reduce the total proportion of spot, presuming that the spot prices continue to be tight. So the fact is that spot also prices may soften, if super early known on so many other things as people say. But we are also trying to, again, take up with our long term suppliers. So we expect that some trying to get some more additional long term volumes as well, which are much more moderately priced.

19:19 So that also is expected to give some kind of a relief. So, yeah, so pricing is one lever, but these other levers are also available with us. So we will assess it and as data commercial has rightly said that we have to strike a balance between, you know, the continuing the growth momentum as well as margin pressure. Got it, sir. Thank you. That's very helpful. But, I mean, just to try and sum it up very clearly, the focus right now is to continue to sort of, you know, protect or grow the market share that we are, you know, sort of getting in the current environment, particularly in the c and d segment and live with the losses within the near term to the extent that we can from from what I could understand.

20:08 That is very temporary thing. That's what... So one way or the other, you know, we would get definitely more help. And then we do have the levers. It's not that, you know, the levers are not there. So we are just keeping a close watch over how the situation is emanating. Because in the past also, even when cargo slightly situation improved, you know, the curtailment, which was there to 70% overnight, it became to 80% as well. So we do believe that there are still expectations that, you know, things may get resolved. And then if that terminology starts coming in, then then the whole thing, you know, changes drastically for us. So you're just keeping close watch.

20:55 Got it. Thank you very much. I'll come back if I'm. Alright. Thank you. Thank you very much. The next question is from the line of Amit from Axis Capital. Please go ahead. Yeah. Yeah. Good evening, and thanks for the opportunity. So on this HP actually chain sourcing, you mentioned, by when do you think it starts flowing into volume? Because I believe some of these volumes are contracted already for probably a year or longer. So it has already, in fact, floated coming into the system. On the... See see, last month, particularly October, we... Earlier prior to October, we used to used to get on the bidding mechanism, and it was disproportionate to our consumption.

21:49 So in the month of October, this clarification came from the government and wherein it was allocated on the basis of the consumption. And however, I think there has been one more revision with effect from November 1. So it is in a phased way. So 25% will be there in this quarter and then going forward next quarter 50% and then next quarter 75% and finally next year by September it will be 100% based on the consumption. So currently around 4,000,000 of HPST is available in the country. So going forward, if we see after one year, because I... For the clarification, almost 1,000,000 will be getting. In fact, last month only we got 1,000,000, but due to this revision and all, it will be around point four going forward in this particular quarter.

22:50 Got it. Got it. And just on CapEx, like, while the cash flows are weak right now, so would you be kind of looking to go slow on your CapEx? See, as mentioned in our opening remarks also, we we believe because this is the transition period. And if we do not build the build the infrastructure right now, so going forward, it will not be that promising. So moment is thrust is also there and being the transaction fuel, CNG infrastructure, the PNG infrastructure has to be built up and then only the volume growth will be there and ultimately, it will convert into the profitability.

23:38 So we are not at all slowing down on the CapEx. We have similar plans. This is a temporary phenomenon and we'll be spending almost 1,700 to 1,800 CapEx this year, 100, 10, 12 has been already done in the first half and we will be having a similar pace on this. And one more point also I would like to add. Actually, you see government has also given support in terms of for pipeline laying, the charges and permission charges have been moderated considerably. So when this window is available, where the charges are also moderated, I think we must and also, of course, the clearing permissions, the window periods have been reduced and all that. I think it makes every sense to use this time to build, otherwise, difficult to do infrastructure also. So we foresee that when it comes to, you know, investment into creating more pipe infrastructure, I think this is a good opportune time to keep going and keeping up with the momentum.

24:45 Got it. And then just last question. So on industrial, is it fair to say that you would have made maybe a ballpark for 5 rupee kind of a EBITDA margin? In fact, on industrial, we have done all, you know, whatever back to back we could pass on and then with some good margin. Almost 7 to 8 rupees per ASM we could have the margin on the industrial segment. Got it. So the entire losses are not in CNG because domestic and in BP and Gs anyways on domestic gas. Yes. You can take that. Oh, the fee don't depend on how gas cost is located among different segments.

25:34 So LNG that goes to CNG and some LNGs will be going to IMC. So it it all depends upon what part of gas has been shifted to, which of the segment. Understood. Thanks. Thanks a lot. Thank you very much. The next question is from the line of from MT Global Financial Service. Please go ahead. Yeah. Good afternoon. So so my question is, again, like, just to get some more granular view on the sourcing. So especially CNG, in q two, mentioned... What exactly was the mix for CNG in q two versus what it is expected in q What happened on that exact numbers? Just just give a moment.

26:31 We'll just give you the exact. See, CNG, see, the mix remains almost the same if we compare from q one to q two. Only thing, the price... Prices have gone up of the spot, point number one. Yes, our LNG spot has also changed. It was 3% in Q1 and now around 15% in Q2. So otherwise, if we see the domestic allocation and all, more or less, it remains the same. Only being the pricing of the LNG, that is the RLNG, with this part as one of those that is giving a hit that you can take it like that way.

27:23 Otherwise, in terms of domestic allocation seems to be more or less same. So in value terms also, sorry, would like to add in value terms also, what our Director of Commercial is saying is right. So the moment we start getting back the contracted thermal energy, I think things would again normalize. So that's again the same point we are coming to. So the replacement of the contracted thermal energy with spot is what is having the difficulty. And Q3 is very difficult to say. So suppose kind of these measures we are as I already told you also, with some more suppliers, are anyway taking up. So even under these difficult circumstances, we do hope that we get some additional volumes of thermal energy.

28:14 And in case for the Asia crisis kind of push down or if more cargoes start coming in, so that also would make a big change. So it is basically the proportion of foreign LNG within that this part that actually is the one that actually so it's very difficult to say that what will happen on Q3. But Q2 versus Q1, exactly, it's only the additional spot RLNG, which are currently quite tight and highly priced. So that's the source of difficulty right now. No. So so q one, you had pool gas, which is not there. That's why the spot LNG share went up from 3% to 15%. Is that right? Exactly. Exactly. And q two to q three, now you have said that you've got HPHT of around point four MMSM. This is incremental HPHT.

29:01 So that's, like, 4%. So this 15% goes down to around 10, 11% spot share. So so it is not the incremental. We were getting around point one five to point two HPHT earlier. Only October month was a exceptional case wherein this full 100,000, you can say around 1,000,000 we got. But going forward, October, say November and December in particularly, there will be a delta incremental of around 2.2, 2.25 in terms of the HPHT. So so it is expected that spot considering on the same volumes, If we if we leave the growth part to something on the same volume, from 15%, it will get reduced to maybe around 12% or 11%.

29:52 Okay. Got it. And and... Okay. Fair enough. And and lastly, how many CNG stations you have now, right now? One one zero three one. One zero three one as on September 30. Right. And and your volume and EBITDA per SEM guidance for FY '27 and '28, if possible. Okay. So next year, again, next financial year, we still maintain the guidance on similar around six to seven maybe particularly. We believe that geopolitical things will ease out, things will be normal and because we already had our long term contracts in place 100% only because of the phase course major issues, we had to go for this part and all and the government has also discontinued this whole gas mechanism.

30:51 But with the HPHT coming into our fold, I think it will be better. So we... Our guidance is still there, and we will try to balance it with the volume growth as well as the EBITDA margins. Right. And 7% to 8% volume growth is sustainable according to you? No. No. No. No. It is more than that. Now we are growing at around 8% and DTC volume being fully going and all and with the newer GS contributing fantastically. So our aspiration, our is this double digit, 10%. We we have plans for 10%. Currently, we are achieving 9% in this quarter. So we are very confident to go beyond 10% in the growth is what we are spending. Double digit. Fair enough. Thank you so much, and all the best. Thank you.

31:41 Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and 1 on your touch tone telephone. I repeat, in order to ask a question, please press star and 1 on your touch tone telephone. The next question is from the line of from. Please go ahead. Hi, am I audible? Yes sir. Oh okay, so I had two questions. First was, so how many CNG, DPC and bench persons are currently in operation and what is the kind of CNG volume that is coming from them? First question was not clear. Okay. Let me repeat.

32:28 Yes. DTC and DIMPS buses that are in operation currently, and what is the kind of volume that that is coming from them? Okay. So DTC is almost now zero, you can say. September average per day was hardly 50 kgs. So, the DTC is all gone. We let us close that chapter now. So, DTC is all finished. For DIMM, sir, we have the current volumes for the first half of this financial year, point three four lakh average, averaging out 1.34. Last year, the average was for the full year, it was 1.47 lakh kg per day. So it is de growing. Yes, it is de growing.

33:15 But currently, how many vehicles we have? 1,700. 1,700 DIMMs vehicle are into the system. Okay. Thank you, sir. And also, the other good point is some of those stations actually are now converted as for retail one, so that's also helping our kind of retail sales growth. So although on one hand, duty buses are out of the way, but the stations, at least 15 stations are still operational and then the volumes are still coming mainly from the passenger and the taxi vehicles and so on. Okay. So the second question was loaded with this recent recommendation that... The recommendation that came, you know, more than zero days per emission in the LCR and phasing out of these four vehicles by 2050 that the funding.

34:15 So assuming this comes into force, what is the kind of volume impact that we are seeing from this? So you are right. The notification has already come. So in fact, it started with all the EV policy of Delhi government, and they are going to phase it out first phase... January 1, the CNG three wheelers, the new registration will be not there. And then n one n one vehicles also, are switching over to EV and with the mitigation plan by 2030 on the school buses converting 30% to EV. So we, viewing the entire scenario, we have also tried to calculate by 2030, almost I think two lakh kgs per day of volume will be going off in a phased manner, but this is a cumulative by 2032 lakh will be going. But however, viewing the growth pattern and the addition of the new vehicles in particularly the passenger vehicles in the four wheeler segment, car segment, we still envisage that double digit growth seems to be very, very promising.

35:37 Okay. Okay. Thank you, sir. Thank you. Thank you very much. The next question is from the line of from Morgan Stanley. Please go ahead. Hi, sir. Thank you for the call. I had a bit of a big picture question around your gas sourcing. I think now we have gone through almost two years of supply challenges, especially on the domestic side. Is there a big picture thinking around whether you want to now improve your long term sourcing of LNG in a much better fashion because your peers have reported much better quality of margins as well? And I think the second question was related to a similar point around beyond the near term and considering the growth outlook that you're giving, would you kind of think about sourcing and even trading of natural gas at some point of time considering the losses you have reported for this quarter?

36:38 So yes, we are mindful that we need to look on some different sourcing strategies. And during the recent gas tech and the previous gas tech also, we have had a great deliberations with some of the global giants of LNG supplies, including ExxonMobil, including Chevron, including BP. And since our volumes are also very, very handsome, I would say, almost we are selling 10,000,000 per day. And if we see on the RLNG sourcing also, it is 5 MMScMD per day. So we are also looking on the alternatives to source a full cargo also going future, how we can be more efficient in our sourcing strategies.

37:42 We are mindful. We are also having long term discussions with the Indian suppliers also, our parents also and maybe other companies operating in the country. So that also the discussions and deliberations are on. Since the molecule will be available post '25, sorry, post '29 or '30 onwards. So we are evaluating and to go going forward to get the best offers and all that we'll be seeing. Secondly, your question on trading, we have already gone into various integrations and all and this proposal is being put up for the trading and I think soon we will be starting this trading of the gas also.

38:37 Got it sir. Sir, just a follow-up on that, is there a target percentage of RNG long term that you want to have in your overall gas mix, including domestic plus HPHT plus everything put together by 2030 since we're trying to grow at 10, 11%? Is there a target RNG mix that you want to have by then? Okay. See, see, it all depends. Like, we know that Indian demand of natural gas is going up. And with the diminishing geological considerations of the Indian wells and all, so gas, domestic gas is going to be a strain and already around five to 7% APM allocation has to go down year on year basis. So that will happen. So ultimately, it will result in sourcing more and more on RLNG part.

39:33 So it will be there and we need to be very very mindful how we do our long term contracts, how efficient we do our long term sourcing of RLNG because going forward, the dependence will be there. Can I add that? But just to add up one more point, like gradually this HPHT long term contracts with other non priority customers. In future, I think gradually they will come into the priority segment. So this is a big pool of gas, which is being leveraged to priority segments and we being one of the largest EGD, we are going to have a lion's share from that portfolio. So one thing is there that so it's very difficult to put a finger on what's going to happen in 2030. But directionally, HPST, more HPST is what we believe would come into the priority sector. And IGL by virtue of having its big share in the CNGT and contribution in the PNGT.

40:29 So we are expected to get good considerable volume from HPST. But the other point is also that within your LNG sourcing portfolio also, we are looking at how do we kind of balance out the indexation also between, you know... But today's today's present is very difficult even the crude is very high, but Brent linked versus HH linked, there are several levers available. So we are looking at all of them closely. So sometimes it's a bit of a temporary thing. One quarter is something favors the other quarter something else goes in a different way. So but you're right, the larger picture is that what only our debt to commission has said, that we are having a kind of relook because in a scenario where and there are also still things are there that even spot every 28, 29, maybe they're attractive as well.

41:24 So it's not that very easy to say today that we should never have spot and then we should have only all the contract volumes. So what happens to that when spot sometimes may go below 10 as well, double digit. We are actually carefully relooking at it. Yes, of course, it's evolving. So we are looking at all of these options. And but long term, because of the volume and the advantage that we have, yes, that's clearly an option for us to independently also source and also do the trading. In fact, to a certain extent, we keep an option in our existing contracts to have a good flexibility on in take or pay basis. So that whenever any opportunity is there on spot side, we procure spot volumes and moderate our existing supply from the term contracts. So such scenarios can also come in future and for which our contracts are already having that kind of problem.

42:17 Thank you. Very helpful. Thank you. Thank you very much. The next question is from the line of from CLSA. Please go ahead. Hi. Thanks for taking my question. Just to come back on the sourcing that you said that you have about 15% from spot LNG in this quarter. That that that is on the total volume. That's about one and a half MMS CMD for supply was spot LNG. Is that how I should think about that 15% number, or is it 15% of CNG? What is the number that you're talking about? So you are right. It is one and a half MMS CMD of the total one. And this number, even in last quarter, was how much? I mean, was it similar 15%?

43:07 Or Point three. Around point three. Around point three. So point three has grown to one and a half of the same day. And the remaining... Basically, the 1.2 and the others was from pooled gas, is it? That's right. The pooled gas and the other is also the term RNG, which is, you know, because of this unexpected continued prolonging, which is Sure. So issue. So, sir, the term RLNG that you had, just to kind of get that clarity before you make the clarification on the one for the hedge, And which is the other contract that you have for that? And how much is the total volume which is there, which you're not being able to get? See The Qatar volume. Right? It will be it will be difficult to comment like that.

43:57 Yes, sir. There has been a cut off almost 1.2 MMACMD with with previous quarter, and that is primarily due to the pool gas allocation. Whereas the other force majeure issues, which is there on Qatar and multiple suppliers, yes, it is there. It is there in all sort of contracts, 100% we have not been able to get. So it is across all the contracts. So sorry, I was just wanting to know that when you had the contract, when it was normal times, say, about one year ago, was the total contracted volume for Qatar? That's the only thing that I'm asking. The long term LNG volume contract that you have, how how much of an SGM do you use it?

44:47 See, traditionally, like, the Qatar volume, what what we used to get was close to point six. Okay. Yeah. And there has been some contracts which have multiple sources. Actually So some flexibility Only contracts have moved from one particular source specific to a portfolio, say, suppliers are getting. Okay. So so so can to identify You know, long term LNG supply that you're not getting, all of them put together is how much MMS, AMD? That's the question that I'm asking. Wait. It's one point five point four. That is the spot only. 1.10. Price is spot. This is the recent time was not part of our regular portfolio. Okay. So this this quantities, which otherwise are... They are contracted out, but because of this prices that we are not getting either through the pool or from the other contracts or from the other suppliers as well. So exactly, it's that quantity that is getting affected and that is getting replaced by costlier spot.

45:47 Okay. So so so you see, all of us are, of course, hoping that, you know, the geopolitical risk kind of end and we get to a more normal market, but clearly not not something that any of us can predict. And, you know, there is obviously a risk that this may continue as well. So two problems to address. Number one is that anyways, you'll be... If you're saying that you can grow by about 10%, that's an increase of almost one MMS, EMD or so even as early as next year. So where are we going to get that extra volume from? Is it going to be largely spot fed till the time we get or, you know, sign... Because if we sign a long term LNG contract many a times, that may not start immediately.

46:34 So are we going to be more and more spot fed till that happens? So so so there are three answers to your questions. See, point number one, we have already done our 100% contract in line with the envisaged volumes up to '27 and and up to 28 also made. Right? So with the take off pay of 60 to 70%, all those things are there. So now due to this cut and all, in the current... As per the current over consumption, so there is a shortcut of 1.5 s c m g. However, our our total contracted volume is more than 1.5. The second thing is, we have also recently sold some additional in the existing contracts with our upstream suppliers and all.

47:30 Wherever they could give us on the existing long term contracts, some volume that whatever volume we could get, so that is there. And the third one, we get the additional HVST also, which we have already mentioned and clarified in the previous questions. So I think these three levers are there going forward. And just to add on to this, like, some of our contracts already, there is a provision on calendar year. This is the volume is already being signed in a graded fashion. So it is increasing over a period of time. So that was also there. So from calendar year 2021 onwards, assets also, we we are expecting to have additional volumes. That's what the first point our data commission mentioned that we have covered. So this... We still see that, you know, it's a bit of a temporary phenomenon, you know, the the most getting stopped and, you know, normal volumes are not all coming.

48:28 So I think... So we... Let's not be so pessimistic. Let's see what it turns out. Okay. Sure. Sir. No. No. I'm... I'd like to be optimistic whether... But, you know, in the case of a risk scenario, how how well are we protected? That's what I'm trying to kind of get a sense of. Yeah. Yeah. I agree. Thank But currently currently, in the current quarter, as things have progressed other than the extra HPHT that you talked about, we might be getting... We will get from this month. This ship, you know, this this sourcing mix hasn't really changed much. Right? The sourcing mix has changed with with q two or q three, or you are telling about q two and q one. Q three q three versus q two as you see q three. Right? Yes. Yes. You are right.

49:17 Current situation, the only the HPFT thing additional... Some more More volume. More volume also. Yes. Yes. Yes. We are talking to suppliers. We will be getting additional Correct. Even in this q three also. Of course, q four, even more will come. So we are taking steps. Okay. Okay. But at this juncture, even if this this is kind of for the next few months, you are not in a rush to take a price hike is how you are looking at things because you'd like to No. That's a deal is always there. That's a... Not a right way to conclude. So we we are looking at it. So it's not that that is not there because it's... I mean, it's available with us. Okay. Thank you, sir. Thanks a lot.

50:03 Thank you. Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address all questions, kindly limit your questions to one per participant. Thank you. The next question is from the line of from Nomura. Please go ahead. Hi, sir. Thanks for the opportunity. Can you please share the MNG and QGM volumes and margin for this quarter? Volumes roughly, I think they have clocked 20 --. No. You're talking about the volumes clocked by MNGL. Right? Volume for MNGL and three years. I mean, margin is. So MNGL, their last quarter average was around two point two two point two point three two point three mmHCMD and one three seven was for CUGL.

51:01 The is growing at CUGL is growing at 11%. MNGL is growing at around 2022%. So margins... MNGL margin was... EBITDA was around 8 to 9 rupees, and COGL was around around 5 to 6 rupees. Okay. And, sir, last quarter, I think you you gave a breakup of vehicle consumption or sales for your. So is there any change? I think buses were 12%, commercial 19%, taxi 14%, PV was around 50%, and three g mail was around 8%. So is this something Mostly, it is same. Mostly, it is. Percentage is broadly the same. Only thing is the average monthly for us is slightly gone up now.

51:56 Last quarter, it was, say, around 22,000. 22,000. And now 27, the previous quarter. Previous quarter was 26. Twenty twenty five, '26 it was, and then average monthly is... I'm talking about changes. 27,000 odd is there. So only in absolute numbers numbers have increased, but the proportion of numbers are more or less same. There's no little change in the segmental percentages. On the taxi side, I think 14%, what is the aggregator share in that? Because I think aggregator will have to move to completely by 2030. What is the rate on that 14,000 volume? It is not the it is not the... No. No. It is not there like that. That's only... See, it was earlier around three years back, some discussions were going on for the aggregator switching over. But in the draft EV policy and the final EV policy also, as per there is no mandate.

52:52 Okay. So just try to understand the impact of EV policy. 3,000,000,000 will be completely going up. So that is 8%, which will go away. And then buses, I think, will be around 2% of total CNG volume. So that will go away completely. And any other volume risk in the buses side? I think school bus, what would be the proportion there? So school... See, that is what I mentioned earlier also. Around 2 lakh per kg, that will be the total volume which is expected to go up by 2030, including n one category school buses and CNG three wheelers. Yes. So that is the expected because CNG vehicle also new registrations will not happen. So phasing out of CNG vehicles will be fifteen years.

53:40 So roughly around five to 6,000 per year will be phased out. So we have one lakh CNG autos running into the system in Delhi. So it is like that. And sir, are you seeing any incremental additional buying of three wheelers ahead of this January cutoff? No. Just the cap. See, there is a cap. If anything increase also happens, I don't think so. It will be more or less on EV part only. Unless or until some other cab actually. You... Yeah. I get up there. It's very difficult to see how suddenly some additional vehicles are getting the whole day. Yeah. What we're talking about is being imposed on Delhi because it's permit based.

54:28 But in other GSAs, it can happen, but in Delhi, it is strictly not too long. Okay. Sir, lastly, on CNG pricing. So just based on current numbers, what will be the price that's required to breakeven? Any number you can share. I said, we already commercial subject. We might not be answering in this for a longer question, please. Fair enough. Thank you, sir. I'll get back. Thank you very much. Last question is from the line of from Indraprastha Gas Please go ahead. Thank you for the opportunity sir. So if you can give us a break up in terms of the number of vehicles added during the quarter and secondly, if you have the same as well as separate each of the features. Okay.

55:29 So number of vehicles added, I'll tell you monthly basis if it is okay. Average monthly during the last half of this financial year. So additional buses added around 428, then the goods carrier, that is the commercial vehicles around 3,097, taxis 3,036. Then your three wheelers and autos, but it keeps on phasing out and adding to 2,112. Then cars was 11,566, and the retrofitment is also happening around 6,800.

56:14 So in nutshell, overall, it is 27,000. This is the average price. Right. In case if have the exact volume, both APM procured as well as new. APM procured. So October figure, you can take, it it was around 2.63 APM, and you were 1.67. Thanks, sir. In case you have the quarter also to be used. Otherwise, So Breakup, we have to just find out for the...

57:10 I think, quarter, it will be difficult, but for October, I shared with you. No. That is my good answer. Thank you. Thank you very much. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to management for closing comments. Thank you all for taking the time to join us today. We sincerely appreciate your continued interest in IGL and the valuable interaction we have during the call today. Thank you once again to the Solar Capital for arranging and facilitating this earning call. On behalf of IGL, I wish you and your family a very happy and a prosperity. Thank you. Thank you very much. On behalf of Indraprastha Gas Limited, that concludes this conference.

58:02 Thank you for joining us and you may now disconnect your lines. Thank you.