See robust volume growth returning to IGL in FY15: Amit Khurana

In a chat with ET Now, Amit Khurana, Dolat Capital Market shares his views on IGL. Excerpts:

ET Now: What is your call on IGL?

Amit Khurana: Well this is a structural call again, that we believe will eventually workout over the next 12 to 15 months and our key assumptions are two-fold. One, possibly they will get a favourable hearing from the Supreme Court, hopefully by the first quarter of CY14. Then, we are hoping that the delayed fleet expansion of local public transport companies will start picking up and that should aid their volume growth for FY15.

We are looking at high single digits or low double digits kind of volume growth returning. Notably, it is remarkable about the company that they have been able to hold down their gross spreads extremely well and therefore, we believe that in FY15 growth should return to IGL and they should be able to post a much better performance.