Indraprastha Gas posts disappointing results

Indraprastha Gas (IGL) has declared its quarterly results on Friday. The company’s revenue has declined by 3.4 per cent to Rs 886 crore in Q4FY16 as compared to same period in previous financial year. Its EBITDA has increased by 12 per cent to Rs 197 crore in Q4FY16 on a yearly basis. IGL’s EBITDA margin has expanded by 306 basis points to 22.24 per cent in Q4FY16 on a yearly basis as cost of natural gas has decreased by 7.75 per cent during the quarter. The company’s PAT has also increased by 12.27 per cent to Rs 108 crore in Q4FY16 as compared to same period in previous fiscal year. Its PAT margin has expanded by 169 basis points to 12.15 per cent in Q4FY16 on a yearly basis.

IGL’s total sales volume has increased by 8 per cent to 373 million scm (standard cubic meter) during Q4FY16 as compared to the same period in previous financial year. Out of this, CNG sales volume has increased by 5 per cent to 210 million kgs, total (Piped Natural Gas) PNG sales has increased by 9 per cent to 86 million ACM in Q4FY16 on a yearly basis.

On yearly front, IGL’s top line has remained flat and has increased by just 0.13 per cent to Rs 3686 crore in FY16 as compared to previous financial year. The company’s EBITDA has decreased by 2.69 per cent to Rs 771 crore in FY16 on a yearly basis. Its EBITDA margin has contracted by 60 basis points to 20.94 per cent in FY16 as compared to previous fiscal year. IGL’s bottom line has reduced by 4.92 per cent to Rs 416 crore in FY16 on a yearly basis. The company’s net profit margin also has contracted by 60 basis points to 11.29 per cent in FY16 as compared to previous financial year.

The share price of IGL has declined by 0.4 per cent on bourses; and closed at Rs 567.5 on May 12.

IGL is engaged in retail gas distribution business for supply of compressed natural gas (CNG) to transport sector and piped natural gas (PNG) to domestic, industrial & commercial sectors in Delhi and National Capital Region. The company manufactures CNG. IGL is a joint venture between GAIL (India) Limited and Bharat Petroleum Corporation Limited. It has a network of 325 stations for supply of CNG, which includes 281 stations in Delhi and 44 stations in National Capital Region.