IGL shares fall 3% after firm's Q3 net profit drops 31% to Rs 325 crore

Shares of Indraprastha Gas Limited (IGL) dropped nearly 3 percent in morning trade on January 28. This comes after the company on January 27 reported a 31 percent year-on decline in consolidated net profit at Rs 325.42 crore for the quarter which ended on December 31, 2024. The shares of the company were trading at Rs 367 apiece, as seen at 9.42 am.

The company's net profit in the reported quarter marks a sharp decline from the Rs 475.45 crore net profit reported in the same quarter of the previous financial year. IGL's revenue from operations in Q3 FY25 however rose around 5.6 percent year-on to Rs 4,146.09 crore. The company's revenue from operations stood at Rs 3,926.19 crore in Q3 FY24.

The fall in net profit can be attributed to the government cutting APM gas allocation for the city gas distribution (CGD) players like IGL. The company's CNG sales volume rose 6 percent year-on-year to 617 million SCM, while natural gas saw nearly no gain or loss in terms of sales volume. The volume of domestic piped natural gas (PNG) saw a growth of 17 percent year-on, while industrial/commercial PNG rose 14 percent year-on.

The company's EBITDA however significantly fell on an annual basis. It stood at Rs 363.03 crore in Q3 FY25, down 36 percent from Rs 564.14 crore in Q3 FY24. Its EBITDA margin stood at 10 percent in the reported quarter.

IGL recently had announced a bonus issue in the ratio of 1:1. It has now set January 31 as the record date to select the eligible shareholders set to receive the bonus shares.

IGL had announced its Q3 results in the post market hours of January 27. The shares of the company had closed at Rs 377.65 before the announcement. After the results were announced, the shares of the company opened nearly 2 percent higher at Rs 384.10. However, the stock later recorded strong losses to trade at the current level of Rs 367.