NIFTY 50

Lower operating costs helped margin expansion: Indraprastha Gas

Updated : November 20, 2020 12:27 PM IST

Indraprastha Gas reduced operating costs which in turn led to margin expansion, said AK Jana, MD of the company.

Speaking in an interview to CNBC-TV18, he said, “We have reached 93 percent of pre-COVID levels in volume in the CNG segment.”

He said volumes from the transport segment were lower because of many employees working from home, and also because of schools opting for online classes.

At the same time, there were indications that more people were preferring their own personal vehicles.

“Because of social distancing people are preferring their own car. The private car conversion is very high. During pre-COVID around 5,000 cars were getting converted in a month whereas today it’s going more than 7,000 and by end of November it will be touching 10,000,” he added.

He said that in oil marketing companies (OMC) operated stations, the revenue share is 60 percent for OMCs and 40 percent for IGL.

“It will take some time to finalize increase in trade margin as asked by OMCs,” he added.

“We are back to volume of 6 million standard cubic metres a day (mmscmd) in October and November and we will be able to do volume of 6.3 mmscmd in Q3,” Jana said.

For entire interview, watch video
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV

recommended for you