Indraprastha Gas’ net profit up 30% in Q2

New Delhi: Indraprastha Gas Ltd. (IGL) on Tuesday posted a 30% increase in net profit to ₹400.54 crore for the quarter ended 30 September, the company said in a statement.

The firm that supplies compressed natural gas (CNG) and piped natural gas (PNG) in four states of Delhi, Uttar Pradesh, Haryana and Rajasthan registered a turnover of ₹2005.07 crore as compared to ₹1433.90 crore recorded in the corresponding period of the last financial year.

“The total comprehensive income for the quarter ending September 2021 was ₹400.49 crore as compared to ₹307.52 crore in the corresponding quarter in the last fiscal. These are standalone results for IGL only and do not include profits accruing from associate companies,” the statement said.

With 16000 km of pipeline network, IGL has city gas distribution (CGD) infrastructure in Delhi, Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Karnal, Kaithal, Fatehpur, Ajmer, Pali, Rajsamand, Hamirpur, Shamli, Muzaffarnagar, Kanpur and Meerut.

“As per the unaudited Q2 results announced by the company for the quarter ending September 2021, IGL registered average daily sale of 7.24 mmscmd in the quarter as compared to 5.50 mmscmd in the corresponding quarter during last fiscal showing a growth of 32%. While CNG segment registered sales volume growth of 36%, PNG segment showed overall sales volume growth of 22% during the quarter,” the statement said.

Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The government plans to increase this share to 15% by 2030. India’s gas demand is expected to be driven by the fertilizer, power, city gas distribution, and steel sectors.

“Both physical and financial performance of the company during the second quarter reflect a strong recovery in 2021-22 after lockdown hit first quarter due to second wave of the pandemic. All the geographical areas where IGL is operating have started generating revenue. Sales have picked up considerably across all geographies and have shown remarkable growth above pre-lockdown levels. They are expected to grow further as the educational institutions open in the coming days,” the statement added.

India recently increased the domestic natural gas price by 62% from $1.79 per million British thermal units (mmBtu) to $2.9 per mmBtu under the domestic gas price regime, which was introduced in 2014. The new price will be applicable from 1 October till 31 March and will result in an increase in electricity tariffs from gas-fuelled power projects and push up the cost of fertiliser production. 

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