EKC Everest Canto Cylinders -Q4 results . EKC has come out with good set of Q4 results.The demand for CNG cylinders in India is picking up due to increasing focus on reducing the environmental pollution and also due to the fact that even after reduction in global oil prices, CNG is still ~55% cheaper then petrol. The Supreme Court has also mandated the public transport system of the 28 cities to be converted to CNG to reduce emissions over next few years. Also with the recent gas finds of Reliance and GSPC we expect good amount of gas to be available for the automobiles. Revenues of Q4FY09 were impacted due to lower domestic sales on account of slowdown in off take of CNG cylinders by OEMs. However the drop in CNG sales in India was partly compensated by robust growth in sale of industrial cylinders. In Q4FY09 the company recorded lower EBIDTA margin on account of higher sale of industrial cylinders which typically have lower operating margins then CNG cylinders. in India, Dubai
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