Earnings Review
Indraprastha Gas EBITDA falls 36% YoY on gas allocation cut
This story was originally published at 19:22 IST on 27 January 2025
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--Indraprastha Gas Oct-Dec net profit INR 2.86 bln
--Analysts saw Indraprastha Gas Oct-Dec net profit INR 2.23 bln
--Indraprastha Gas Oct-Dec net profit INR 2.86 bln vs INR 3.92 bln year ago
--Indraprastha Gas Oct-Dec revenue INR 41.46 bln vs INR 39.26 bln year ago
--Indraprastha Gas Apr-Dec net profit INR 11.18 bln vs INR 13.65 bln yr ago
--Indraprastha Gas Apr-Dec revenue INR 121.26 bln vs INR 115.11 bln year ago
--Indraprastha Gas Oct-Dec EBITDA INR 3.64 bln vs INR 5.64 bln year ago
--Indraprastha Gas Oct-Dec total volumes 838.10 mscm vs 780.26 mscm year ago
--Indraprastha Gas Oct-Dec CNG volumes 616.61 mscm vs 582.19 mscm year ago
--Indraprastha Gas Oct-Dec PNG volumes 221.49 mscm vs 198.07 mscm year ago
--Indraprastha Gas Oct-Dec CNG revenue INR 27.32 bln vs INR 26.09 bln yr ago
--Indraprastha Gas Oct-Dec PNG revenue INR 10.11 bln vs INR 9.28 bln yr ago
By Anand JC
MUMBAI – Indraprastha Gas Ltd.'s operating profit for the December quarter contracted 36% on-year as the company reeled from the twin gas allocation cuts by authorities. The net profit of the gas distribution company fell on year for the third straight quarter in Oct-Dec but was higher than analysts' expectations.
The profit after tax for the trailing December quarter was INR 2.86 billion, down 27.1% on-year and 33.7% sequentially. Analysts had pencilled in a bottom line of INR 2.23 billion. The government in October and November had cut supplies of low-priced natural gas produced from oil fields to city gas distributors by as much as 40% on the back of dwindling gas output.
The company's earnings before interest, taxes, depreciation, and amortisation for the reporting quarter was INR 3.64 billion. The Street was expecting the EBITDA of Indraprastha Gas to decline 38% on year.
The company's revenue from operations for the December quarter was INR 41.46 billion, 5.6% higher on year. Analysts had pegged the company's top line at INR 36.60 billion. Excluding excise duty, Indraprastha Gas' revenue from operations for the December quarter was INR 37.59 billion, 5.6% higher compared to the year-ago period.
The company's other income for the period was INR 1.29 billion, up from INR 550 million in the same quarter a year ago. Indraprastha Gas' EBITDA margin for the December quarter was 9.7% compared to 15.9% a year-ago.
The total expenses for the December quarter were INR 39.1 billion, up 12.7% from a year ago. The New Delhi-based company's tax expenditure for the reporting quarter fell to INR 829 million from INR 1.23 billion a year ago.
SEGMENTAL PERFORMANCE
Indraprastha Gas's compressed natural gas sales volume for the December quarter was 616.6 million standard cubic metres, up 6% on year. The CNG business roughly contributes 70-75% to the company's overall sales volume.
Piped natural gas sales volume for the domestic users rose 17% on-year to 66.28 mscm, while sales to industrial and commercial users rose 14% on-year to 109.21 mscm. Natural gas sold by Indraprastha Gas remained largely unchanged at 46 mscm. Overall, the sales volume for the quarter-ended December was 838.10 mscm, up 7% on-year.
Net of excise duty, the company earned INR 27.32 billion from CNG sales in the December quarter, up 5% from the corresponding period a year ago. Revenue from piped natural gas sales increased 9% on-year to INR 10.11 billion.
For Apr-Dec, Indraprastha Gas' revenue from operations was INR 121.26 billion, up 5.4% on year. The company's bottom line for the first nine months of the ongoing financial year was INR 11.18 billion, down 18.1% compared to a year ago.
On Monday, shares of the company ended 1.5% lower at INR 377.50 on the National Stock Exchange. The company disclosed its earnings after market hours. End
Edited by Saji George Titus
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