Indraprastha Gas Q4 Results: Net Profit Rises 9% to Rs 433 Crore;Dividend Reveals Rs 5 Sh

State-owned Indraprastha Gas Ltd (IGL) on Tuesday announced its consolidated net profit for the fourth quarter of fiscal year 2023-24, showing a notable increase of 9% to Rs 433.29 crore. This growth comes in comparison to the Rs 397.51 crore reported in the same period a year ago.

However, it reflects a decrease of nearly nine percent from the Rs 475.45 crore recorded in the previous quarter ending December 31.

The company's revenue from operations during the quarter under review stood at Rs 3,964.42 crore, marginally declining from Rs 4,056.44 crore reported in the same period last year.

In a recent board meeting held on May 7, 2024, IGL announced the appointment of Prof. Dr. Simrit Kaur as an Additional and Independent Director of the Company for a period of three years. Her appointment is effective from the date of allotment of the Director Identification Number (DIN).

The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the fourth quarter stood at Rs 682.58 crore, showing a decline of approximately 3 percent compared to Rs 702.65 crore recorded in the previous quarter.

The company's board has recommended a dividend of Rs 5 per share for the financial year 2023-24. "The Board of Directors has recommended a final dividend of 250%, i.e., Rs 5.00 (previous year Rs Nil), on equity shares of Rs 2 (previous year Rs 2) each for the year ended March 31, 2024, subject to the approval of shareholders at the ensuing Annual General Meeting," IGL said in an exchange filing.

IGL reported a total volume of 8.73 million metric standard cubic metres per day (mmscmd) in the quarter ending March 31, marking a growth of six percent compared to the same period last year.

During Q4, CNG volumes showed a five percent growth year-on-year at 580 million scm, while PNG (domestic) and PNG (industrial/commercial) witnessed a 17 percent and 12 percent increase in volumes, respectively, on a yearly basis.

It's worth noting that on March 6, IGL reduced the prices of compressed natural gas (CNG) by Rs 2.5 per kg. This revision came following the government's observation that CGD companies had not been passing on the benefits of gas reforms to consumers to secure higher margins.

In summary, Indraprastha Gas Ltd's Q4 results reflect a positive trend in net profit and total volume, coupled with strategic board appointments and a dividend recommendation, indicating a steady performance amidst evolving market conditions.

On June 15, 2023, IGL Genesis Technologies Limited was incorporated as a subsidiary. In IGL Genesis Technologies Limited, the company owns 51%. The subsidiary's major goal is to manufacture, supply, sell, and distribute gas and other metres, as well as other related items and services.

The certificate of incorporation was received by the subsidiary on July 13, 2023. During fiscal year 2023-24, the company invested Rs. 18.87 crore to acquire 51% of the subsidiary's stock. The company's share of the subsidiary's net loss for the year is Rs. 1.73 crore, and for the quarter it is Rs. 0.52 crore.