Thank you, Huda. Good day, ladies and gentlemen.

On behalf of DAM Capital, I welcome all of you to Indraprastha Gas Limited second quarter FY26 earnings call. Today from the management team of IGL, we have the pleasure of having with us Mr.

K.K. Chatiwal, the Managing Director of IGL; Mr.

Mohit Bhatia, the Director Commercial; Mr. Sanjay Kumar, the CFO; and Mr.

Manjeet Gulati, the VP Finance. With this, I shall now hand over the floor to the management for their opening remarks, which shall then be followed by the question-and-answer section.

Over to you, sir.

Good afternoon, ladies and gentlemen. I am Kamal Kishore Chatiwal, Managing Director of IGL, and it's my pleasure to welcome all of you to the Q2 FY26 earnings call.

Thank you for taking the time to join us today. For those who are new to this forum, let me begin with a brief overview of our organization.

Indraprastha Gas Limited, IGL, is one of the India's leading CGD companies operating across 12 geographical areas in four states. Our mission continues to focus on providing safe, reliable, sustainable energy solutions to our customers.

We have built a well-diversified portfolio of mature and emerging geographical areas that offers both stability and significant growth potential. On the infrastructure front, our network continues to expand steadily.

Today IGL operates a steel pipeline network of over 2,500 km and an MDPE network of approximately 29,000 km. Through this robust infrastructure, we supply natural gas to more than 31.75 lakh households, nearly 5,300 industrial units, and around 7,200 commercial establishments.

Additionally, we operate 955 CNG stations across four states. Turning now to the financial and operational performance for Q2 FY26, I'll just give a broad overview.

The details will be shared by our Director Commercial. The overall sales grew by around 3% year-on-year.

The CNG segment registered a 3% growth while PNG volumes grew by 6%. Although the sales to DTC and DIMTS declined due to their ongoing transition from CNG to electric mobility, the underlying CNG demand remains strong.

Excluding DTC, the CNG volumes grew around 10%, reflecting continued traction across private and commercial vehicle segments. A key growth driver for the quarter has been the continued increase in CNG vehicle adoption.

On a 12-month rolling basis, we witnessed an average monthly addition of around 19,000 CNG vehicles, a 21% increase over Q2 of last year. The central government's GST rationalization reducing GST on CNG vehicles from 28 to 18% has further improved CNG's competitiveness not only relative to other fuels, but also relative to EVs especially.

As a result, October alone saw 31,000 new CNG vehicle additions supported by festive demand and GST benefits. With effect from 1st October, the reduction of VAT on domestic gas sourced from Gujarat from 15% to 2% has also lowered the input gas cost by approximately ₹1 per scm, and this is expected to positively contribute to EBITDA margins in the upcoming months.

In addition to that, the notification by PNGRB regarding Zone 1 classification for CNG transport and domestic PNG is also there. The implementation of that is yet to start, we are expecting that to be notified shortly.

Once that is implemented, there will be benefits. When the exact number comes, then we will be able to give the quantum of the benefit.

That concludes my opening remarks, and I will now invite our Director Commercial, Mohit Bhatia ji, to share his comments.

Thank you, Managing Director Mr. K.K.

Chatiwal, and good afternoon to everyone. I am Mohit Bhatia, Director Commercial at IGL.

I join in welcoming along with Managing Director all our investors, fund managers, and analysts to today's session. Let me take you to the key financial and operational highlights of quarter two for the financial year '25-26.

Our total sales volume for the quarter stood at 857 million standard cubic meter as compared to 830 million standard cubic meter during the same period of last year, reflecting a 3% year-on-year growth. This translates to an average daily volume of 9.31 million standard cubic meter as compared to 9.03 during the same period for the last year.

While Delhi's growth remains flat overall, however the NCR, that is the National Capital Region, grew by 7%, whereas the other GAs, including the new GAs, have shown a healthy growth of 16% during the quarter two over the last quarter for the same last year. In terms of quarterly average CNG sales, I think IGL crossed 50 lakh kg per day with volumes reaching almost 7 million scmd, making a growth of 3%.

If we exclude the DTC sales, CNG grew by around 10% year-on-year basis. With the DTC share declining in the coming quarters, we expect CNG growth to remain healthy.

In the PNG segment, excluding the NG part, overall sales increased by 6%, reaching 1.84 million standard cubic meter per day compared to 1.74 million standard cubic meter in the Q2 last year. The total revenue for this quarter stood at ₹4,432 crores with a growth of 9% year-on-year.

Our profitability, EBITDA for the quarter, stood at ₹443 crores compared to ₹512 crores in the previous quarter and ₹532 crores in Q2 last year. The decline is primarily due to the reason in the average gas procurement cost.

Consequently, the PAT for the quarter stood at ₹373 crores versus ₹431 crores during Q2 of last year. As highlighted by our Managing Director, EBITDA margins are expected to improve going forward driven by the growth in the volumes, reduction in Gujarat VAT on domestic gas procurement effective October 25.

Further, as he mentioned, the upcoming single-zone tariff framework announced by PNGRB, which aims to rationalize tariffs and bring CNG and domestic PNG under a unified structure, will also have a positive impact on the margin. Once implemented, this framework is expected to significantly benefit the entire CGD sector, particularly companies like IGL operating far from the gas sources and should positively influence IGL margin in the near future.

That concludes my remarks, and we are now opening the floor for the Q&A session. Thank you.

Thank you for the opportunity, sir. I hope I'm audible.

Yes, you are audible. Yeah.

Sir, just first question was on the Delhi number, which you mentioned was flat on a YoY basis for this quarter. Is it possible to get a comparable number for Q1?

What was the Delhi volume growth like in Q1 of this year?

Delhi volumes in the Q1 was also, I think, 1, 1.5% positive if we include the DTC numbers. If we exclude the DTC numbers, it was around 7 to 8%.

With diminution in the DTC because the DTC average sales in the month of September, it was hardly left around 30,000 per month only. That's why this is the trend.

In coming years, we look forward for a healthy growth in terms of CNG because the historical sales of DTC will be absolutely almost zero then.

Sir, given this kind of run rate, would you like to still maintain the 6 to 7% overall volume growth guidance for FY26, I believe that was shared earlier?

We look forward for the same around maybe 8 to 10%. If we exclude the DTC volumes, the historical volumes as well as the current, and then we overall see, I think it is in the range of 6 to 7%.

With the newer GAs performing well, closer to a double-digit growth, we expect to have in the range of maybe 8 to 10.

Understood. The second question was, I think, the obvious question we had about the Saudi JV.

Just wanted to understand the strategic rationale for looking at the Middle East suddenly as an option. If you can also throw some color on what kind of investment, if any, has been thought of and how will the financing, the modalities of this whole move that you have put?

Actually, that we feel is a very, very big opportunity because we have sent a team there to assess their existing industrial cities. Just to give a brief, Saudi has divided the whole kingdom in 36 industrial cities.

Out of that, they have awarded seven industrial cities. Presently they are on liquid fuels.

Liquid fuels, LPG, propane, and all those things, even the heavier fuels also. They want to transition to gas.

After these seven, now the next in the line is five, and there the development is a little planned in the sense that they open up those industrial cities where the trunk lines are available. Very near to these industrial cities, gas is available.

That gas trunk line is operated by Aramco. Each industrial city has a potential of 1 to 1.5 million of gas.

The laying cost for the network is also not much since the gas is nearby. We feel the investment would be realistic like in India.

If we look at India, some of the areas, pipeline is far away and the gas is not available, individual entities had to lay 80, 90 km of pipeline to bring the gas. That is not the case there.

The amount of investment to that extent would be less, but the volume potential is huge in each industrial city. IGL will provide the technical, operational, safety assistance or assist in developing both aspects.

The financial and overall stakeholder management at Saudi would be with our partner. The interest rate, as there is extremely low.

To that extent, we feel this is a good opportunity. Since this is a first venture, so many more opportunities may come in the gas value chain.

Our returns therefore will be in the form of basically a consulting fee in terms of the expertise that we provide, or? No,

we are investing. We will be having the stake around 40% equity.

The partner would have 60. That's the kind.

It's not a consulting assignment. It is the investment also, and that will be a joint venture in the form of a JV where 40% stake will be IGL's.

We'll put in money, we'll put in expertise also. We'll send people there who will implement all those in ground.

Sir, if I may ask one follow-up, what is the regulatory and sort of the margin environment for these licenses? Is it similar to India, different, or more?

I think

it will meet our threshold. I would only say that it is above our threshold, whatever we have within the company.

It is meeting those requirements. We are not looking at all these five cities.

Our next target would be 36 industrial. This is in the phase one.

Next we want to expand there. So 24 cities will again come up for bidding, where also the tendering is there and two-stage tendering is there.

In the first step, the prequalification is there based on some predefined criteria, and you have to score minimum 60%, but according to us, I think we will be able to get more than 90% there. Is there

any numbers you can share? Sorry, sir.

Right now we don't have the tender document as such. That will be available once we are qualified, and the results will be announced in January 9.

The last date of bid is 29th 29th of November. We'll be submitting our bid for prequalification.

Then once there are some procedural requirements there that you need to have MISA license and all these things. We are in the process of doing all those.

We are taking help of international consultants based in Saudi, Grant Thornton. That's our consultant for this assignment.

Whatever prerequisites are there for submitting that bid, we are in the process of doing that. Once that is done, then maybe after January we will know based on the tender document what are the pricing and all those things.

Understood. Sir, one last question.

This was more around this quarter's margin reduction and the gas cost increase. Just wanted to understand what was the reduction in new well gas and APM allocation for this quarter and any spot LNG procurement at all was done in this quarter because of which costs have gone up?

Actually, there is no spot procurement in our portfolio. All are term contracts.

Only thing is that Henry Hub has increased, dollar appreciation is there, rupee has depreciated. These are the major impacts in addition to the reduction in this APM and new well gas.

How much was the reduction, sir,

this quarter? What was the percentage?

Sanjay will be sharing that. If you talk about APM gas, last quarter it was out of the priority segment, 44% was the allocation for priority segment, and this quarter it is 41%.

In terms of NWG, last quarter it was 13%. It has come down to 10%.

HPHT also we had some major contracts or major supplies through HPHT last quarter. It was 16%.

This quarter it was 10%. RLNG component has increased from 25% to 37%.

That's the mix change which has happened in the current quarter, which basically increased the gas cost.

Understood, sir. Thank you so much for the detailed answers.

I'll come back in the queue, sir. All the best.

Thank you.

Thanks for the opportunity. Sir, you mentioned that ex-DTC, in this quarter the volume growth was 10% for Delhi?

Yeah. No, for Delhi it was 7%, overall 10% excluding DTC sales.

Overall we grew by 10% in CNG, and if we talk about only Delhi, the growth was 7%.

Got it. Sir, this quarter it seems NCR growth has been on a lower side, right?

Generally you grow around 10, 12% CNG growth rate on a NCR. This quarter NCR growth as you mentioned was around 7, 8% only.

It was 7 to 8%, correct.

Any specific reason or this is a new normal or you expect that growth to bounce back?

I think it should bounce back. Maybe there has been a little bit dip in the industrial segment we can say if we bifurcate.

There has been certain dip in that, and we are hopeful to recover it back. Actually, if I may just add to that, the LPG prices have been a little soft, as you know the crude is around 60, $65 range.

That competitiveness is there and there is minor switch from gas to propane, those who have got this flexibility.

Sir, I think so when we say about 7% growth in NCR and the argument what you have given is more on the industrial side where the growth was on the weaker side, right? CNG growth has been good as per you, right?

CNG in NCR would have grown by what percentage, sir?

NCR CNG has grown by 9% and PNG is 5%.

CNG grew by 9% and the PNG grew by 5%. Got it.

Sir, one more last question on this Gujarat government VAT reduction which you have got it now, is there any possibility that government of Gujarat can go to the court? Because there is no such notification from the central or the Gujarat government.

I think it's an agreement, revision of agreement between GAIL, ONGC, and you, right? Is there any possibility that government

Actually understanding is not correct. There is nothing related to Gujarat government.

Okay. They have not issued anything that we are reducing that.

The VAT remains 15%. It is only because it is high seas offshore sale that has happened, and the arrangement is between GAIL and ONGC and they are delivering us the gas at Delhi.

Nothing that the VAT rates have been reduced. Now we are treating as CST.

Because,

sir, from I think one quarter back or 10 years back, the same thing was working, right? GAIL ONGC was delivering gas to the GAIL, and GAIL was delivering that gas to the IGL or whatever.

The Gujarat government, this 15% VAT, it probably came in 2017 or '18, I don't know which year. Then why now?

Why it was not happened in the past, sir?

I think there has been some intervention from Ministry of Petroleum and Natural Gas and central government, and some things have been worked out for the CGD sector that there were some representation that this is an additional thing that is there that is not required. I think something has been done, but the details would be available with, I think, GAIL and ONGC, what is the arrangement.

We are not privy to that.

Got it, sir. Sir, and one more on this rationalization of tariffs to the single zone for the CNG, what kind of an cost saving you will have it at an company level?

Will it be closer to around ₹1 per scm? The numbers are important there, but the numbers those are there floating around, it should be more than ₹1.

More than ₹1, sir. Got it, sir.

Thank you, and wish you all the best.

Thank you.

Thanks for taking my question, sir. Sir, as you mentioned, the cost of gas savings of ₹1 per scm due to VAT reduction to 2% from earlier 15%.

Sir, are we planning to pass on these benefits to the CNG and the D-PNG consumers because we have cut the CNG prices in a non-Delhi region in October month?

Yes. Actually Delhi, we wanted to keep the prices constant, like earlier we have not increased in anticipation of all these changes.

That was the reason that Delhi has been kept constant. We have passed on ₹1 benefit to the PNG customers.

Outside NCR, some new GAs which are growing, there we thought that it would be good support that whatever benefit is there, if we pass on that, it will help us in expanding the base.

Is there still a scope to pass on more?

We will see that once the tariff notification also comes, then we will review the prices and then take a call. As of now, our prices are very competitive with respect to the neighboring GAs and also with respect to alternate fuels.

The second question, if you could provide a gas sourcing details for this quarter. How much was the APM, NWG, crude-linked, Henry Hub, spot?

That is mostly into the mmscmd terms, that would be helpful. I know that you have a little bit shared in the percentage term, but if in mmscmd, it would be helpful.

Okay. The gas sourcing which happened in Q2 was the APM non-APM gas, domestic gas, was 3.25 million cubic meter per day.

This was 41% of the priority segment. NWG was .81 million.

Coalbed methane gas was .11 million. HPHT domestic gas was .76 million.

RLNG was 2.91 million. This comprised of 7.83 million cubic meter of priority segment sales.

Okay. Sir, last question from my side.

If we try to back-calculate the difference between the DTC versus CNG loss, in the last quarter in Q1, you mentioned the 88,000 kind of 88,000 scmd kind of a consumptions on a daily basis, while in a September-ending, you just mentioned a 30,000 scmd. If we add back the difference of .06 mmscmd into the CNG volume, then total CNG volume will reach to approximately 7.03 mmscmd from the which we reported 6.97 mmscmd.

Still if we try to back-calculate, the YoY growth is hardly a 6% while you are indicating a 7% and 10%. Can you please correct me where I'm missing?

See,

if you see, we need to compare it with the historicals. Just some data I'll share with you.

Last year September, we were averaging out around 2 lakhs per day, which has come down to almost 30,000 per day. Q1 if end we see is the June month, as I said you also mentioned that around 80,000 per day, whereas last year same June was around 2,15,000 roughly.

I think the historical figures need to be looked into while calculating the growth. I think I am able to respond to you.

Yeah. Lastly, how many DTC buses are remain to be phased out in this year?

Almost now it has come down drastically, and now only hardly 28 to 30,000 per day sales are there. Further we expect, yeah.

We have the DTC buses remain in operation is 226, and DIMTS, it is remaining at 1,750. Overall both put together, 2,000 buses are there.

Last quarter this number was 3,200.

Thank you, sir, and wish you all the best.

Thank you.

Thanks for the opportunity, sir. Looking at the trade margin of OMCs, has there been any significant change during the quarter?

No, there is no change in trade margin during the quarter for the OMCs.

Does the contract have any kind of an escalation built into it?

Yes, for outside Delhi GAs, there is a provision of 5% increase in the trade margin.

Per annum?

Outside Delhi. There is no agreement as such Delhi.

Outside Delhi, let's say the 25% volume, there is an agreement where I think the agreement is with ACE, that you may be aware. You may be referring to that.

Yes, a 5% increase is there. Sure.

Secondly, the opex for the quarter seems to be on the lower side. Is that something sustainable?

What led to that kind of a lower opex?

Actually, mainly the savings have been in the repair and maintenance and power and fuel. Power and fuel is marginal in the sense that some of the gas equipments we have shifted to power, so that has been some.

Major improvement has been in the repair and maintenance, some operational efficiency is there.

Should we assume this is more like a new normal?

Yes, this is a new normal. Rather we are focusing on improving it further.

Rupees per scm of R&M, we are constantly improving and partial benefits have been realized. We feel that we can improve further.

Great, sir. All the best.

Thanks a lot.

Hi, good afternoon. On margin, while this quarter you have seen a lower margin, but at same time as you mentioned that ₹1 plus kind of benefit should come in.

How do we think about EBITDA margins in that context? In the past, I think you've maintained ₹7 plus as margin guidance.

Could you throw some more light on the margin expectations?

We are confident that 7 to 8 guidance we will be able to maintain. Unfortunately, the tariff order was notified in, I think, 4th of June, 4th of July, I think.

4th July, but it is yet to be implemented. In anticipation of that, we have not touched our retail selling price for CNG.

I think if that order comes, then we'll be able to, I think, assess the situation. Our long-term guidance remains on 7 to 8, and we are on path to that.

Sure, assuming the tariff order comes through and this ₹1 plus cost savings is there in Gujarat, essentially then we should not be requiring any price hikes to kind of go to a seven then, right? Is that understanding correct?

Yes. More or less that understanding is correct, but we may have to do some review on that front for some of the GAs where the taxes are high.

That is a constant review process, and we will review that situation. On a broader base, yes, what your understanding is correct that if we get ₹1 plus kind of benefit in tariff and ₹1 is from this VAT reduction, then I think we are in 7 to 8 range.

Got it. Perfect.

On capex, what is the guidance now?

On the capex, see during H1 we have done capex of ₹580 crores, and primarily on our core segment, that is the infrastructure, PNG in particularly around 50, 55%, and the CNG and the steel part around 40, 45%. We have plans for around 1,200 to 1,400 on our core in the capex.

Some diversification thing, if it happens, we are trying, another maybe ₹700 to ₹800 crores.

Should we see more as a run-rate capex, that 1,200 to 1,400 for core business?

It will be roughly around ₹1,200 to ₹1,400 crores, almost 580, 600 odd we have done in H1 already.

Okay. Sure.

That's all from me. Thank you.

Hi. Good afternoon, and thanks for the opportunity.

Sir, staying actually on the question of growth, first just wanted to point out and correct me if I'm wrong, if I look at the rolling growth over past four quarters for subsequent quarters, then we are looking at a slowdown in growth from third quarter FY25 onwards, which is third quarter last year, and this is across segments, not only in CNG. How does our growth target of about 10% in a year stand in this backdrop?

Because so far in this year also in the first half, we have done about 4% growth. Are we sticking to our guidance of growing at about 9 to 10% in the year?

Definitely, as mentioned earlier also, if we exclude the DTC, see we need to have this fact that DTC will be diminishing and there is a transition on the DTC to the EV part. If we exclude that, I think CFO also mentioned that we are growing at 10% in CNG and around 8 to 10% in PNG also.

We look forward on those numbers only. 8 to 10% should happen, and once we get the zero base of the DTC, I think we'll be achieving these numbers.

Sir,

staying even on the DTC question, I'm working with the numbers that you gave of about .2 mmscmd in September last year and about .03 in this year. Even if we adjust for that, the CNG volume has grown by about just 5% on a year-on-year basis, 5.5.

I'm not sure what am I missing that I'm not getting the 9% number over there, first of all, for your CNG growth. Secondly, yeah, please.

Okay. This is only the 5 to 6% you are saying only the DTC gap, but otherwise there is a natural growth also.

If we compare in holistic, the outside GAs as well as NCR part, it's coming at around 9

to 10%. Nitin,

apart from DTC, DIMTS sales have also gone down. I told you about the bus fleet which has gone down not only for DTC, but DIMTS also.

There also the number of buses which have gone out of service on CNG is approximately 1,000. If you compare both sales put together, there is a reduction of approximately 2.2 lakh kg.

These numbers we are talking in kg.

Okay. Got it.

The .2 numbers that you gave and that was 30,000 scm per day or 30,000 kg per day that we were selling?

That was kg kg kg number. 2.2 lakh kg reduction in sales on account of DTC and DIMTS.

You have to multiply it by 1.4 to arrive at scm number, right?

Understood, sir. That's a mistake on my part.

Thanks for correcting me, sir. Secondly, on the margin question, sir, while we have a benefit of about a rupee because of the tax change that has happened, but just wanted to understand the impact of INR.

How should we look at that, and how does that impact our cost as such? Would the sharp depreciation in INR be offsetting that benefit that we are getting from tax rationalization?

I didn't get your question. Last bit is, well, I think this ₹1 that we have calculated is factoring in that impact of the current whatever INR depreciation has happened.

Further depreciation, I think, when we will have to reach it. No.

That's already there. You are right that impact of depreciation will definitely be there, but we are expecting that rupee to be stable given strong growth and all.

Impact will definitely be there, but that ₹1, it has been factored.

Right. What I'm trying to get at, sir, is that your guidance for 7 to 8 rupees of operating margin, right?

If we look at the first half, we have done about 5.7, which is 5.5. The incremental ₹1 which is going to come in from 1st October, you're saying that this is in excess of anything that would have been taken away by depreciation in INR.

Yes. Outside of Delhi only we have reviewed the prices.

In Delhi, CNG has remained untouched. Plus if we get the notification with respect to the tariff order, so that will be additional ₹1 plus.

That will take it without any change in the prices, that will take it to 7 to 8 zone.

Understood, sir.

If you're talking about full-year average, then it would be difficult, but on quarter basis roughly we'll be reaching by maybe quarter four we'll be reaching seven.

Sir, to conclude, how should we look at the volume number for FY26? The average in the first half has been about 9.2.

How should we look at the full year then in your assessment?

I think our exit would be around 10.

Okay. For '27, sir, any

Exit would be around 10 million.

Okay. Exit would be 10.

For '27, if you can give us some guidance in specific terms.

I think if we are able to consolidate some of the GAs and all that we are discussing, then I think we can do more than 1 million addition.

Understood, sir. Thanks.

That's all from my end. Thank you.

Yeah. Hi, sir.

Just one question on MNGL. Is it possible for you to share financial and operational performance of MNGL for this quarter as well as for H1?

Yes, I'll give you. MNGL is selling around 1.9 million cubic meter of gas per day.

Its profit for the half year was Just a minute. Q2 profit for MNGL was ₹148 crores.

Sir, similar number for H1?

It should be similar. Approximately ₹300 crores for half

year.

That's the number, profit after tax.

Okay. Thank you.

That's all from me. Thank you.

Yeah. Just a clarification, you mentioned those Saudi cities, what is the volume potential per city?

Actually, as per the initial estimate, it is 1 to 1.5 million, but exact details would be known once they will be sharing the details in stage two. Once we prequalify, then they will be sharing the details.

We had sent a team there, the existing industrial cities are doing around 1 to 1.5 million. They have seven industrial cities, those are operational.

In present one, three cities are in Riyadh, so that is the major industrial city there. Our estimate is that all industrial zones should be in that range.

So 1 and 1.5 million metric standard cubic meter per day, right?

Yeah. In one industrial city.

Mmscmd, right? Also, what is the rough cut investments required to achieve that kind of a volume?

I think those numbers are not there, but it will be much less than what is there in India because the connectivity is very nearby.

Is there an ramp-up there or it could be done very quickly given that it is industrial?

I think it could be done very quickly because that's the mandate that they are given to switch from liquid to gas. There, I think it would be very, very quick.

Only the phasing in the cities, they have planned it very well in the sense that wherever they are able to give the trunk pipeline connectivity, those industrial cities they are opening up for bidding. Right?

Now in this phase, there will be five, and maybe going forward after 1, 1.5 years, once the pipeline connectivity in other zones is there, they will open up that. Timeline for this is very, very short in the sense that I think their tender finalization would be somewhere around May, June, and by '27 end gassing should be there.

That's the kind of timeline they are given.

Got it. Secondly, on the currency, you mentioned that when you have talked about this margins going up, you have built ₹88, ₹89 of rupee dollar, right, versus 87 in Q2?

Assumption is at 88.

Around 88 you have taken while giving this guidance and the pricing, right? Okay.

Thank you so much. Yeah.

Thanks.

Actually, I'm happy to share that the major advantage is there, our online sales is almost 97 97.5%. Okay, 97.5% of our sale comes through online stations.

That's very limited stations which are offline, and those are mainly in outside GAs. That's point number one.

Second is that some of the benefit that we are anticipating is on the LNG front. Going forward, there is an expectation that once the LNG plants are commissioned and they go onstream, LNG prices, which are currently at around $10, $11, should also come down.

That would be another advantage. The crude being down, we feel that APM and new well gas prices would also be subdued, as well as the HPHT prices.

Given that energy prices overall are lower, we feel that the input gas cost should come down. Once that comes down, then I think we will be comfortably in 7 to 8 zone.

These are the two, three factors on an input front. On the operational front, we continue to improve our operational efficiency, but that will give only an incremental benefit like 20, 25 paise per scm kind of numbers, but the big numbers would come from the input gas cost as well as the volume that you talked about.

Understood. If you look at the Saudi project proposal, if you're looking at technical and operating assistance and your own equity stake, what is the kind of risk you are taking in terms of developing the project?

What would be your revenue stream from that? What is the kind of ROCE you can expect based on whatever internal assessment you have made?

I know it is possibly early days, but to get a sense in terms of what is the motivation what is it that you're going to do there in terms of earning revenue, and how would it support an ROCE in terms of your own target? Actually, our bigger vision is to create an IGL kind of entity there.

That's the bigger vision. For these five cities, we are looking at 100, 150 kind of for five, five cities, ₹100, ₹150 crores and the volumes would be 4 to 5 million.

Yeah. Hi, sir.

Just continuing on the Saudi, in the existing seven cities, who are the players like, and how is the competition like? Who are you competing with, and what are the chances of winning these additional five cities that you are looking at?

Actually, that's what I said, that the numbers we are sharing are based on the existing industrial cities. Those are operating and they are doing 1, 1.5 million kind of numbers.

They are the local CGD entities. The size is much smaller than IGL.

That's the only plus that we have, that we have a history of 25-plus years operating in the sector, and we are operating in the most difficult area of NCR region. That too from the PNG perspective, I'm saying.

These are the two factors plus our financial, technical strength, operational experience, safety experience. All those factors make us believe that, I think, we should be able to win those bids.

This is the first step, I'm saying, that more and more industrial cities would be coming up. Based on our performance, we are confident that we'll be able to get some more cities also.

Just a follow-up. Just to clarify, once you bid for the city, you set up the entire infrastructure.

You will be the sole supplier of gas over there? Is there any timeline in terms of how many years and exclusivity would be there?

I think those details are not available with us, because once the tender document is there, then we will be able to know. Preliminarily, I think they also have some exclusivity kind of a period, the infrastructure exclusivity.

Similar to other countries and also similar to India, they will have some exclusivity period. In addition to that, I think the best part is that their trunk pipeline connectivity is near to these industrial cities.

The connectivity to the main city would not require much capex. That is the positive.

Then once you bring in the steel network, then the MDPE network, you can connect the individual industries. Our team has gone and similar equipment, same vendors are there those who are supplying the metering skid there.

The same metering skids are available in the existing whatever industrial cities are operating. The details are not with us right now.

That will be part of the tender document, so that is till now information available with us.

Sure. That's it from my side.

Thanks.

Okay. Thank you everybody for attending this call.

We had a very fruitful discussion and lots of queries on our international venture, which is we just started yesterday. Probably that will be a major milestone in history of the company.

Going forward, probably it will help us improve our profitability and volume. Probably when we meet again for the next meeting, we'll have more things to share on that aspect.

With that, thank you very much. Thank you again for joining this call.

Thank you, DAM Capital, also. I missed to mention that.

Thanks.

Thank you.