Indraprastha Gas Limited (IGL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to IndraPresta Gas Ltd. Q2FY27 Earnings Concall hosted by Dollar Capital Markets Private Ltd. As a reminder, all participant lines will be in the 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 star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Yogesh Patel. Thank you, and over to you, sir.

Thank you, Sasha. A very good afternoon and happy diwali to the management of IGL and to all analysts. 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 Mr. Kumar Shankar, Managing Director of IGL, Mr. Mohit Bhatia, Director Commercial, and Mr. Manjit Gulati, CFO. I will hand over the floor to Mr. Kumar Shankar for their initial remarks. Over to you sir.

Thank you, Yogesh. Very good evening, and a very happy and safe depauly to all of you. I am Kumar Shankar, Managing Director of Indraplus Gap Ltd. 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 FY2627. 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 PNGRB 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 Hormuz, could be restored. Coming to IGL's performance in Q2, we have delivered a robust volume growth with the company registering 8% year-on-year growth on both the CNG and PNG front. So it's a kind of a balanced positive growth rate in both the services, CNG and PNG services. At the same time, input gas costs have increased considerably during this quarter. This 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 measure situation with respect to the term energy contracts, and because of that, the continued curtailment in the long-term energy supplies. 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 are 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 PNG-D segments being achieved by the individual entities. So we also remain engaged with the evolving gas supply environment and will continue to optimize our gas sourcing mix as well. So, during this quarter, another positive development is the release of a daily report, which was released by a special advisor to the Prime Minister, and the daily 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, LCVs, and it concludes that it can serve as an important intermediate pathway towards the year 2050. 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 10.06 million SEMD, so this is the first time the average daily sales of a quarter has crossed 10 million SEMD. This is, I think, the first perhaps for any CGD in the country as well. So this is as compared with the figures of 9.31 million SEMD in Q2 of the previous corresponding year. Our overall CNG sales volume, of course, net of BTC and DIMTS operations also increased approximately 10 percent. 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 Rs. 5,500 crore. So this half yearly numbers also correspondingly has already crossed Rs. 10,000 crore. So, we continue to invest in expanding and strengthening our infrastructure, not only to support government's P&G drive 2 and 3, but also for our strengthening our own robust infrastructure. So, we incurred capital expenditure of around Rs. 712 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 pressure on input gas cost, 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 Commercial, Mr. Mohit Bhatia, to share his opening remarks. Thank you.

Thank you, Kumar Shankarji, Managing Director. Good evening, all. At the outset, very, very happy Diwali to all of you. I am Mohit Bhatia, Director Commercial at IndraPastia. 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 30th September 26th. We believe that long-term fundamentals of the CEDD 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 PNG segments. It is encouraging to see broad-based growth across both the segments with CNG volumes growing at around 9% and PNG volumes growing by 8%. Within PNG, 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. IGEL has proudly announced Kidwai Nagar, East and West, Nivegeta Kunj, and New Motibaag as the LPG-free zones with 100% PNG connectivity. IGEL has also initiated an automated vehicle verification system across CNG retail outlets to verify cylinder hydrotest 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 PNG supplies and entered into strategic alliances for technology advancement. In terms of infrastructure development, our steel pipeline expanded by almost 21 kilometers and our MDP network by almost 827 kilometers during this quarter. We added 1 lakh domestic P&G customers and built almost more than 1.32 lakh new connections in this quarter. We have also connected 537 additional industrial and commercial customers and added around 7 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. In Delhi NCR, the CNG sales excluding DTC and DEMS 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 31 crores. PBT of 9.5 crores and PAT of around 24 crores. 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 conversions 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 compensated by the CNG. Twenty-five percent registration of new vehicles into CNG during the month of July itself as a single month. Considering the increase in the gas cost, 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 CED 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. 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 their touchtone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prabal Sen from ICICI Securities. Please go ahead.

Thank you for the opportunity. Good afternoon. The first question was with respect to the gas sourcing mix. Can we get a detailed breakup in terms of the sourcing mix and the extended cost of each source for this quarter on an overall basis?

Yeah, I think the first question was very well expected because of the sourcing issues. So, in overall, if we see the situation, domestic is still around 48 to 50 percent, Whereas in the domestic also, APM and the renewal gas is almost around 40% and 10% in particularly October we got on the HPHT. And while we still rely on the RLNG part as around 52 percent, however, in particularly during the last quarter, because of the force major issues and all, spot out of this RLNG was at 15 percent. And you are aware that the spot has really increased, particularly in the last quarter. It was hovering around $22, and recently now it is $30 plus per MBT.

You caught it, sir. 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. If we do not take price increases across segments, is it fair to think that even Q3 will be as proper quarter from a margin perspective as Q2 or?

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 HBST 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 fourth measure issues and all. So what will be there? However, see, 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. 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, long term will be not favorable. And secondly, after a long period, including DIMS and DTC also, we are envisioning a growth of around 8% in CNG, and if we e-bar the DIMS and DTC, it is 10% plus. And our outside GAs are having a very, very handsome growth of around 30%. So, viewing the overall situation, short-term, yes, it will be a pain, but I think if we want to keep it as a long-term strategy, unless or until volume comes, it will be very difficult to sustain.

I would like to add one more point here. Absolutely. Just add one more point. 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, but also prices may soften, if super railing and 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, you know, some trying to get some more additional long-term volumes as well, which are much more moderately priced. 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 our 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 CNG segment, and live with the losses in the near term to the extent that we can, from what I could understand.

This is a 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, other 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, the situation improved, you know, the cattle mine 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 the whole thing, you know, changes drastically for us. So, you're just keeping close watch.

Thank you very much. I'll come back if I can. All right. Thank you.

Thank you very much. The next question is in the line of Amit Murazga from Access Capital. Please go ahead.

Yeah, yeah. Good evening, and thanks for the opportunity. So, on this HPHT chain source thing, what I 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. See, last month, particularly October, earlier, prior to October, we used to get on the bidding mechanism, and it was disproportionate to our consumption. 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 1st of November. So, it is in a phased wave. 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 million of HPST is available in the country. So, going forward, if we... See, after one year, because as for the clarification, almost 1 million will be getting. In fact, last month only we got 1 million, but due to this revision and all, it will be around 0.4 going forward in this particular quarter.

Got it, got it. And just on KPEX, like while the cash flows are weak right now, so will you be kind of looking to go slow on your KPEX?

See, as mentioned in our opening remarks also, we believe because this is the transition period, and if we do not build the infrastructure right now, so going forward, it will not be that promising. So, government trust 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. So, we are not at all slowing down on the capex. We have similar plans. This is a temporary phenomenon, and we will be spending almost 1,700 to 1,800 capex. This year, 712 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, if you see, government has also given support in terms of pipeline laying, you know, 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, you know, 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.

Got it. Thanks. And just last question. So, on industrial, is it fair to say that you would have made maybe a ballpark 4, 5 rupee kind of a EBITDA margin?

In fact, on industrial, we have done all whatever back-to-back we could pass on, and then with some good margin, almost 7 to 8 rupees per HM, we could have the margin on the industrial segment.

Got it. So, the entire losses are not on CNG, because domestic and DPNG is anyways on domestic gas. Yes, you can take. That's right. It all depends on how gas costs are located among different segments. So, the energy that goes to CNG and some energy will be going to INC. So, it all depends upon what part of gas will be shifted to, which of the segment. Understood. Thanks. Thanks a lot.

Thank you very much. The next question is from the line of Sabri Hazarika from MT Global Financial Service. Please go ahead.

Yeah, good afternoon. So, my question is, again, like, just to get some more granular view on the sourcing, so, especially CNG in Q2, you mentioned, what exactly was the mix for CNG in Q2 versus what it is expected in Q3?

Exact numbers. Just give a moment. We will just give you the exact. CNG... See, the mix remains almost the same if we compare from Q1 to Q2. Only thing the prices have gone up of the spot, point number one. Yes, RLNG 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 thing, the pricing of the LNG, that is the RLNG, with the spot has gone up, though, that is giving a hit that you can take it like that way. Otherwise, in terms of domestic allocation, seems to be more or less same.

So, in value terms also, sorry, I would like to add, in value terms also, what our director commercial is saying is right. So, the moment we start getting back the, you know, 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, you know, contracted thermal energy with spot is what is, you know, Having the difficulty and Q3 is very difficult to say, you know, so suppose kind of these measures we are, as I already told you also, with some more supplies we are anyway taking up, so even under these difficult circumstances we, to hope that we get some additional volumes of thermal energy, and in case if West Asia crisis kind of cools down or if more cargoes start coming in, so that also would make a big change. So it is basically the proportion of RNG 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.

So, Q1 you had pool gas which was not there, that's why the spot RLNG share went up from 3% to 15%, is that right? And Q2 to Q3, now you've said that you've got HPHT of around 0.4 mm SCM, this is incremental HPHT? So, that's like 4%. So, this 15% goes down to around 10-11%.

So, it is not the incremental. We were getting around 0.15 to 0.2 HPST earlier. Only October month was an exceptional case, wherein this full 100% you can say around 1 million we got. But going forward, October, November and December in particular, there will be a delta incremental of around 2.2 to 0.25 in terms of the HPST. So, it is expected that spot, considering on the same volumes, if we leave the growth part, something on the same volume, from 15%, it will get reduced to maybe around 12% or 11%.

Okay, got it. And, okay, fair enough. And lastly, how many CNG stations you have?

Now, right now. So we have 1031, 1031 as on 30th of September. Right.

And your volume and EBITDA per SCN guidance for FY27 and FY28 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 percent, only because of the first major issues, we had to go for this part and all, and the government has to do it. We have also discontinued this hold gas mechanism, but with HPST coming into our fold, I think it will be better. So our guidance is still there, and we will try to balance it with the volume growth as well as the EBITDA Martins.

Right, in 78% 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 double digit, 10%, we have plans for 10%. Currently, we are achieving 9% in this quarter. So we are very confident to grow beyond 10%.

The budget growth is what we are spending.

Thank you very much.

Ladies and gentlemen, in order to ask a question, please press star and one on your touchtone telephone. I repeat, in order to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Snedi Arora from Dollar Capital. Please go ahead.

Hello, hi, I'm Erdogan.

Yes, sir.

Oh, okay. So, I had two questions. First was, so how many CNG, DTP, and DEMPS persons are currently in operation, and what is the turn of CNG volume that is coming from them?

The first question was not clear.

Oh, can I repeat? Yes, DTC and DIMPs that are in operation currently, and what is the kind of CNG volume that is coming from them?

Okay, so DTC is almost now zero, you can say. September average per day was hardly 50 kgs. So DTC is all gone. Let us close that chapter now. So DTC is all finished. For DIMMS, we have the current volumes for the first half of this financial year, 1.34 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, but currently, how many vehicles we have? 1,700. 1,700 DIMMS vehicles are into the system.

Oh, thank you. And also the other good point is some of those stations actually are now converted as for retail one, you know. So that's also helping our kind of retail sales growth. So although on one hand the BTC 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.

So, the second question was to do with this recent recommendation that CFPM recommendation that came, you know, moving toward zero-day program mission in Delhi-NCR and phasing out

of base-4, we call back-2030 there, bonding.

So, assuming this comes into force, what is the kind of volume impact that we are seeing from this?

So, you are right, this CAQM 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, first of January, the CNG three-wheelers, the new registration will be not there, and then N1 vehicles also, they are switching over to EV. And with a 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, 2 lakh kgs per day of volume will be going off in a phased manner, but this is accumulated by 2030, 2 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.

Thank you, sir.

Thank you very much. The next question is from the line of Mayank Maheshwari 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... It's a supply challenge, 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.

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, Also, we have had a great deliberation 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 million per day, And if we see on the RLNG sourcing, also it is 5 MMSTMD 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. 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 will be seeing. Secondly, your question on trading. Yes, we have already gone into various deliberations and all, and this proposal is being put up for the trading, and I think soon we'll be starting this trading of the gas also.

So just to follow up on that, is there a target percentage of RLNG long-term that you want to have in an overall gas mix, including domestic plus HPHT plus everything put together by 2030 since we're trying to grow at 10-11 percent? Is there a target RLNG mix that you want to have by then?

Okay, 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 wealth and all, so gas, domestic gas is going to be, going to be a strain, and already around 5 to 7 percent 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 parts. 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.

But just to add up one more point, like, gradually, this HPHT long-term contracts. With other non-priotity customers, in future I think gradually they will come into the priority segment. So this is a big pool of gas which is being diverted to priority segments and we being one of the largest EGD, we are going to have a long share from that portfolio.

So, one thing is there that, so it's very difficult to put a finger on, I know, 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, so we are expected to get good considerable volume from HPST, but the other point is also that within your RLNG sourcing portfolio also, we are looking at how do we kind of balance out the indexation also. Today's present is very difficult, even crude is very high, but Brent Link versus HH Link. You know, there are several levers available. So, we are looking at all of them closely. So, sometimes it's a bit of a temporary thing, you know, one quarter is something, the other quarter is something else, goes in a different way. So, but you are right, the larger picture is that what already our director commercial has said, that we are having a kind of relook because in a scenario where, and there are also still things are here that even spot every 28, 29 may be very attractive as well. So, it's not that very easy to say today that, you know, you should never have spot and then you should have only all the contract volumes. So, what happens to that when spot sometimes may go below 10 as well. So, we are actually carefully reinvented, yeah, of course, it's evolving. So we are looking at all of these options, but long term, because of the volume, as you said, 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 in take-or-play races, so that whenever any opportunity is there on spot side, we procure spot volumes and moderate our existing supply-to-me-time contracts. So such scenarios can also come in future, and for which our contracts are already having that kind of privilege. Thank you.

Very helpful. Thank you.

Thank you very much. The next question is from the line of Vikash Jain from VNSA. Please go ahead.

Hi, thanks for taking my question. Just to come back on the sourcing bit, you said that you have about 15% from Spot LNG in this quarter. That is on the total volume, that's about 1.5mm CMD of supply was for LNG. Is that how I should think about that 15% number or is it 15% of CMD? What is the number that you're talking about?

So you're right, it is 1.5mm CMD of the total volume.

And this number even in last quarter was how much? I mean, was it similar 15% or?

0.3. Around 0.3. 0.3. Around 0.3.

So, 0.3 has grown to 1.5 mm, and that is meaning. Basically, the 1.2 and the others was from pooled gas, is it?

That's right. The pooled gas and the other way is also the term RLNG, which is, you know, because of this unexpected continued prolonging recession. Sure, sure.

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 H, and which is the other contract that you have for that, and how much is the total volume which is there, which you are not being able to get?

See, it will be difficult to comment like that. Yes, there has been a cut-off of almost 1.2 MMSEMD with previous quarter, and that is primarily due to the pooled gas allocation, whereas the other force measure issues which is there on Qatar also, and multiple suppliers, yes, it is there. It is there in all sorts of contracts, 100% we have not been able to get. So, it is across all the contracts.

Oh, sorry, sir. I was just wanting to know that when you had the contract, when it was normal times, say about one year ago, what 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 much MMS GMT was it?

See, traditionally, like the Qatar volume, what we used to get was close to 0.6. Okay. And there have been some contracts which have multiple sources.

Actually, only contracts have moved from one particular source specific to a portfolio, say each suppliers are giving. So it is very difficult for us to identify long-term RNG

supply that you are not getting, all of them put together is how much MMS CMD? That's the question that I'm asking.

So, this quantity is, which otherwise are, they have 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.

Okay. 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 something that any of us can predict. And, you know, there is obviously a risk that it just may continue as well. So, do... 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, you know, sign, because if we sign a long-term LNG contract many times, that may not start immediately. So, are we going to be more and more spot-fed till that happens?

So, there are three answers to your question. See, point number one, we have already done our 100% contracts in line with the envisaged volumes up to 27 and up to 28 also made, right? So, with a takeoff 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 overconsumption, so there is a shortfall of 1.5 mm CMG. Our total contracted volume is more than 1.5. The second thing is we have also recently sourced some additional in the existing contracts with our upstream suppliers and all, 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 HPHT also, which we have already mentioned and clarified in the previous questions. So I think these three levers are there going forward.

And 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 provision is also there.

So from calendar year 27 October, assets also, 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 phenomena of, you know, the propose getting stopped and the normal volumes are not at all coming. So I think, so we, let's not be so pessimistic, let's see how it turns out.

No, no, I'd like to be optimistic whether, but, you know, in the case of a risk scenario, how well are we protected? That's what I'm trying to kind of get a sense of. 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. Thank you. Shit, you know, this sourcing mix hasn't really changed much, right?

The sourcing mix has changed, with Q2 or Q3, or you are telling about Q2 and Q1?

Q3, Q3 versus Q2, as you see Q3 right now.

Yes, yes, you are right, current situation, the only the HPFT thing has.

Additional, some more, some more volume also. Yes, yes, yes. We are talking, we will be getting additional, even in this Q3 also. Of course, Q4, even more will come. So, we are taking test.

Okay, okay. But at this, young sir, 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 like to look at it.

No, but our liver is always there. That's not a right way to come through. So, we are looking at it. So, it's not that that liver is not there, it's available to us.

Okay. Thank you, sir.

Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address all questions, can you limit your questions to one for participants? Thank you. The next question is from the line of Beneeth Pankha from Nomura. Please go ahead.

Hi, sir. Thank you for the opportunity. Can you please share the MNGL-COGM volume and margin for this quarter?

Volumes, roughly, I think they have clocked 20... No, you are talking about the volumes clocked by MNGL, right?

Volume from MNGL and CUGL. I mean, margin is going to sell.

So, MNGL, their last quarter average was around 2.2... 2.3... 2.3 mm SCMD, and 0.37 was for CUGL. CoGL is growing at 11%, MNGL is growing at around 22%. So margins, MNGL margin was EBITDA was around 8 to 9 rupees, and CoGL was around 5 to 6 rupees.

Okay, and sir, last quarter, I think you did a breakup of vehicle-wide P&G consumption or sales for your GA. So, is there any change? I think buses were 12%, commercial 19%, taxi 14%, PV was around 50%.

And he gave us around 8% so is this something...

Most free it is the same. Most free it is. Percentage is broadly the same. Only thing is the average monthly reps has slightly gone up now. Last quarter it was say around 22,000, and now 27, the previous quarter,

25,

26 it was, and then average monthly is, I am talking about change rates, 27,000 are, it's there. So, only in absolute numbers, numbers have increased, but the proportionally, the numbers are more or less same. There is no change in the segmented percentages.

On the taxi side, I think 14%, what is the aggregator share in that? Because I think aggregator will have to move to complete EE by 2030. What is the risk on that 14% volume?

It is not there. No, no, it is not there like that. See, it was earlier, around three years back, some discussions were going on for the aggregators switching over, but in the draft EV policy and the final EV policy also, as such, there is no mandate.

Okay, so just try to understand the impact of VG policy, VG will be completely going off, that is 8% which will go away, and then bus size I think DIMS will be around 2% of total CLG volume, so that will go away completely, and any other volume risk in the bus size, 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 N1 categories, school buses, and CNG three-wheelers. So, that is the expected, because CNG vehicle also, new registrations will not happen. So, phasing out of CNG vehicles will be 15 years, so roughly around 5,000 to 6,000 per year will be phased out. So, we have 1 lakh CNG autos running into the system in Delhi. So, it is like that.

Sir, are you seeing any incremental additional buying of free-wheelers ahead of this Jan cutoff?

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 view.

There is a cap, actually. Back end of the year, it's very difficult to see how suddenly some additional vehicles, particularly three-wheelers getting, how will they come from.

Yeah, what we're talking about is being enforced on Delhi because it's permit-based. But in other GSAs, it can happen, but in Delhi, it is strictly not so long.

Okay. Sir, lastly on CNG pricing, so just based on current numbers, what will be the price that is required to break even? Any number you can share?

Being a very commercial subject, we might not be answering in this forum on this question please.

Thank you sir. I'll get back.

Thank you very much. Last question is from the line of Varadharanjim from Antique Stop Walking. Please go ahead.

Thank you for the opportunity, sir. If you can give us a break-up in terms of the number of vehicles added to the quarter, and secondly, if you have the exact volume of JPM, as well as give us a break-up.

Okay, 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 carriers, that is the commercial vehicles around 3097, taxis 3036. Then, your three-wheelers and autos, but it keeps on phasing out and adding for 2,112, then cars was 11,566, and the retrofitment is also happening around 6,800. So, in nutshell, overall, it is 27,000. This is the average one. Thanks, and then in case if you have the exact volume of the APF, let's... APM procured. So October figure you can take, it was around 2.63 APM and UL was 1.67. Exactly.

In case you have the water also, it will be useful. Thank you very much, everyone, and welcome to the APM plus NWG put together was 3.88. That was the allocation to us, which we have consumed in full.

Good morning, everyone. We have to just find out for the, I think, water it will be difficult, but for October, I'll share it with you.

No, that is fine.

Go ahead, sir.

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 Bureau of Capital for arranging and facilitating this happening call. On behalf of IGL, I wish you and your family a very happy anniversary. Thank you.

Thank you very much. On behalf of Interpesta Gas Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.