4 November 2018 The Petroleum and Natural Gas Regulatory Board had increased tariffs with effect from April 2018. The company has fully booked the retrospective impact in 2QFY19, as a result of which, the numbers are not comparable either with estimates or with previous quarter/year. Net sales stood at INR5.98b, EBITDA at INR5.2b and PAT at INR3.2b. Transmission volumes grew 11% YoY (-4% QoQ) to 35.0mmscmd (in-line) in 2QFY19. Implied transmission tariff stood at INR1,810/mscm, up 63% YoY and 59% QoQ due to the differential of 1QFY19 also being booked fully in 2QFY19. We model (a) transmission tariff of INR1,467/mscm in FY19/20 v/s actual INR1,129 in FY18 and (b) volumes of 34/30mmscmd in FY19/20 v/s actual 31.5mmscmd in FY18. The lower volume is on account of possible start-up of RILs petcoke gasifier, which could take away 5-7mmscmd of volumes. The company has clocked EPS of INR8.3. We estimate FY19 EPS of INR16.