“We are operating a network of more than 16,000 kilometre gas pipeline and around 16 lakh domestic customers and over 6,000 industrial and commercial customers. Today we are operating around 626 CNG stations out of which, 426 CNG stations are there in Delhi as against 395 petrol pumps,” says AK Jana, MD, .
What is volume growth you are seeing post the reopening of the economy? Are you seeing strength coming in in quarter two?
I am happy to share that we have achieved the best quarterly results in a Q2 in PAT as well as sales and turnover and volumes. We have created a balanced ecosystem wherever we expect volume growth to be and accordingly we have created infrastructures like CNG stations wherever it is required and new GAs are coming up. They have also started giving the turnover and so all the prerequisite permissions were in place.
We have created enough infrastructure so that the volumes, whatever expected, have come up. We have converted 100% PNG in Delhi for industries. We are targeting the same for NCR also and gradually we will be doing the same thing for the new GAs. At the same time, we have focussed on how to improve the operating efficiency by which we can bring down our expenses while maintaining the assets.
We are operating a network of more than 16,000 kilometre gas pipeline and around 16 lakh domestic customers and over 6,000 industrial and commercial customers. Today we are operating around 626 CNG stations out of which, 426 CNG stations are there in Delhi as against 395 petrol pumps. This has created volume and we are expecting more demand once the schools and airports as well as the IT sector start functioning fully.
Let me talk about the price hikes. Do you expect further APM gas revision early next year or so?
We have a robust pricing mechanism. I have to balance the interest of the investor as well as consumers. I should not burden the customer in one go. One year back, around 3,000 to 4,000 CNG vehicles used to get inducted in the market in my GA. Today it has gone up to 12,000 to 16,000.
Since I am in the retail sector, our target right from the beginning was that business will be done on volume rather than margin. At the same time, any incremental cost expenditure is coming out because of the input gas costs. We have been able to pass on that provision to the customer in a staggered manner and not in one go and so it is not proving to be a huge burden to the customer. We have progressively increased the rates and today I am happy to share that the entire burden has been passed through.
Looking into the future how it is to be done will be decided in Q3 and Q4 as the price can go up to $5.5 to $6 as against today’s $2.9. We have to strategise so that the interest of the investor as well as the market is taken care of.
What are the new geographies that you are looking to enter now?
We are going to get the entire Gurgaon with us. In the 9th and 10th round, we have expanded to more states like UP, Rajasthan and Haryana and so we are presently working in four states. The one major area could be Rajasthan that is Ajmer, Rajasamand and Pali districts are there with us. Muzaffarnagar, Kanpur, Faridabad, Kaithal, Karnal and Rewari and Gurgaon are the new GAs we have acquired. All the GAs have been gassified and the fact is that we are supplying the gas through cascade which is very costly. By the end of this year, all the GAs would have their own gas pipelines.
What is the outlook going ahead for the rest of the financial year when it comes to the volumes as well as margins for FY22 for your company?
EBITDA last year was Rs 7.4 and we would try to maintain the same and quite possibly it might touch Rs 8 per SCM. The volume would also be coming in the range of 8 million which is a growth of 30% in comparison with last year and around 11 to 12% increase with respect to the 2019-2020. Bottom line may see around a 50% increase with respect to last year
