Petronet LNG has announced its Q3FY2009 results. It has reported better-than-expected volume growth of 6.0% y-o-y to 85.07TBTUs (80.27TBTUs) as against our expectation of marginal volume de-growth.
Better volumes coupled with Rupee depreciation helped the company post better-than-expected topline growth of 56.4% y-o-y to Rs2,473.0 crore (Rs1,581.1 crore).
EBITDA margins contracted by 717bp y-o-y to 7.5% (14.7%) mainly due to higher cost of gas purchased. Staff cost, other operating expenses and depreciation were flat y-o-y. Other Income increased 85.2% y-o-y to Rs22.2 crore (Rs12 crore).
Higher volumes and other income helped the company post lower-than-expected bottomline de-growth of 19.8% y-o-y to Rs105 crore (Rs131 crore) as against our expectation of Rs99.7 crore.
We maintain a BUY on the stock, with a target price of Rs80.