New Delhi : City gas distribution (CGD) companies in India are projected to clock an operating profit of Rs 7.2–7.5 per standard cubic metre (scm) this fiscal -- up 8-12 per cent compared with the second half of last fiscal when margins dropped because of a sudden and steep decline in gas allocation under the administered price mechanism (APM) for the compressed natural gas (CNG) segment, a report said on Thursday.

Consequently, distributors had to take recourse to the spot gas market for supply, which exerted upward pressure on cost. The companies have, thereafter, transitioned to contracted supplies, which is expected to burnish margins. "Healthy earnings will keep leverage in check despite the proposed capital expenditure (capex) by companies. Read Also GAIL Gas bags PNGRB Excellen

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