Petronet LNG's (PLNG) reported numbers are 6%/7% lower than ours/consensus estimates in 1QFY20. Net sales fell by 6% YoY to Rs86.1bn led by 11% YoY fall in long-term LNG volume at Dahej. The Company receives higher tariffs on long-term volume compared to only Regas volume. Reported EBITDA grew by 10% YoY to Rs10.2bn (13% above our estimate), as the Company adopted Ind AS 116 with Lease Liability of Rs38.3bn. Classification of the lease rentals for the current quarter has been changed from the Cost of the Goods Sold' and Rent Expenses', as the case may be, in the P&L; account to Depreciation' and Finance Cost'. EBITDA margin improved 170bps YoY to 11.9%. Net profit fell by 5% YoY to Rs5.6bn (4% below our estimate), owing to Ind AS116, which led to Rs516mn decrease in PBT. Adoption of Ind As-116 resulted into...