On 1 November 2023: Indraprastha Gas Limited (BSE, NSE: IGL) announced its Q2 2023-24 financial results, reporting an increase in Net Profit for Q2, but a decline in Revenue from Operations compared to the same quarter in the previous fiscal year.
Additional Read: Q2 Results Dashboard
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- The erstwhile gas distribution company has witnessed a Net Profit going up by almost 30% to ₹553 Cr, relative to Net Profit in Q2 FY 22-23 at ₹427 Cr.
- The company’s Revenue from operations saw a decline in this Q2, at ₹3822.53 Cr, relative to Q2 FY 22-23 when it was at ₹3,922 Cr. T
- The revenue growth missed its mark according to several analysts’ estimates at a higher figure.
- EBITDA has increased 2.3% to ₹656.9 Cr and EBITDA Margin for Q2 stands at 19%. This is approximately 25% higher than the figures in the same quarter for the previous fiscal year.
Additional Read: Indraprastha Gas Share Price
Volume Performance – Quarterly Sales
Here are the highlights related to aspects of sales in volume for Q2:
- In Q2 FY 23-24, the company’s total sales volume witnessed a growth of 3% going to 8.30 Mn metric standard cubic metres per day, relative to 8.09 MMSCMD in the same quarter of the previous fiscal year.
- Additionally, the sales volume for piped and natural gas increased 3% YoY, reaching 574.72 MMSCM and 189.08 MMSCM, respectively.
- On the domestic side, the PNG sales volume increased 15% YoY and was at 52.98 Mn SCM, while the industrial sales volume saw a drop of 2% YoY. The sales volume for natural gas remained unchanged at 46 Mn SCM, relative to the previous fiscal year’s quarter.
- The company’s board has declared a 200% interim dividend of ₹4 per equity share, of the face value of ₹2 per share for FY 23-24.
About Indraprastha Gas Limited
Indraprastha Gas Ltd. was formed in 1998. It started operations to manage the Delhi Gas Distribution Project in 1999, taking over from the earlier management by GAIL (India) Ltd. The company works with key goals in mind, to provide a convenient, safe, and reliable supply of natural gas to customers in commercial and domestic segments. The company serves the areas of NCT Delhi, Ghaziabad, Gautam Budh Nagar, Muzaffarnagar, Hapur, Shamli, and parts of Kanpur, Meerut, Banda, Fatehpur, Gurugram, and some parts of Rajasthan and Haryana, among other districts.
Additional Read: Indraprastha Gas Shares Drop
Through strategic distribution channels, the company expects pollution levels to decrease. The transport sector employs the use of natural gas, such as Compressed Natural Gas or CNG, while the commercial and domestic segments make use of PNG or Piped Natural Gas. Industrial enterprises use R-LNG. Going forward, the company strives to enhance its infrastructure to meet the evolving demands of consumers, especially because vehicles run on CNG in Delhi. The growth drivers for this are car manufacturers adopting the mechanisms of CNG in vehicle production and government mandates for CNG use in LCVs in Delhi. Consequently, the company is in the process of adding new stations regularly. As far as PNG is concerned, the gas is used in non-cooking operations like geysers. With this in view, the company has plans to expand pipeline supply for longer distances. The main focus of the company, going forward, would be commercial and industrial areas of usage.
Source: https://www.iglonline.net/financial
