HomeNewsBusinessEarningsFuel subsidy burden may rise to Rs 43654 cr: KR Choksey

Fuel subsidy burden may rise to Rs 43654 cr: KR Choksey

KR Choksey has come out with its earnings estimates on oil and gas sector for September quarter FY13. According to the research firm, Falling gas output from KG-6 is major concern for the Gas sector, Gas transmission through pipelines are moving downward.

October 13, 2012 / 13:09 IST
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KR Choksey has come out with its earnings estimates on oil and gas sector for September quarter FY13. According to the research firm, Falling gas output from KG-6 is major concern for the Gas sector, Gas transmission through pipelines are moving downward and City gas distribution companies are facing problems of higher import of LNG with depreciating rupee impact.

Overall fuel subsidy burden will rise to Rs 43654 cr even fall in Indian Crude basket to the level of $107/bbl, did not helped to arrest increasing under-recoveries mainly due to depreciation of rupee. The expansion in refining margins was largely led by middle distillates followed by some improvement in gasoline and naphtha as well, while demand from the petrochemical sector remained muted. We will see improvement in refining margins due to better demand for middle distillates. Petrochemical deltas are flat on Q-o-Q. Falling gas output from KG-6 is major concern for the Gas sector, Gas transmission through pipelines are moving downward and City gas distribution companies are facing problems of higher import of LNG with depreciating rupee impact. Asian LNG spot prices on the other hand softened to US$ 13/mmbtu. Factors to watch in the Q2 FY13 result Top Picks: Cairn India, Petronet LNG

CompanySales (Rs Cr)PAT (Rs Cr)
FY13EFY14EFY13EFY14E
Reliance Ind361,461373,62722,25323,051
ONGC175,771186,37332,28430,102
Indraprastha Gas2,6822,87294113
Cairn India Ltd20,47920,26812,11311,162
Petronet LNG23,81528,3111,0961,269
GAIL India Ltd46,96058,3834,3364,790

 
first published: Oct 13, 2012 01:04 pm

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