Indraprastha Gas Limited (IGL) has released its financial results for the fourth quarter of fiscal year 2025, showcasing a mixed performance amid rising revenues but declining net profits. The company reported a net profit of Rs 349.23 crore for the quarter ending March 31, 2025, which marks a 9% decrease compared to Rs 382.80 crore in the same period last year. Despite the profit drop, IGL's net sales saw a significant increase of 10%, reaching Rs 3,950.57 crore, up from Rs 3,596.79 crore in Q4 FY24.
IGL's total sales volumes for the quarter stood at 826.40 million standard cubic meters (scm), reflecting a year-on-year growth of 4%. This volume included 603.64 million scm of Compressed Natural Gas (CNG), which also grew by 4%, while Liquefied Natural Gas (LNG) volumes surged dramatically by 10 times to 0.30 million scm. Additionally, the total volume of Piped Natural Gas (PNG) was recorded at 222.46 million scm, also representing a 4% increase.
While the revenue figures painted a promising picture, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a decline of 5%, dropping to Rs 497.23 crore from Rs 522.55 crore in Q4 FY24. The EBITDA margin consequently fell from 15% in the previous year to 13% in the latest quarter.
For the entire fiscal year 2024-25, IGL's net profit totaled Rs 1,467.59 crore, which is a 16% decrease from Rs 1,748.08 crore in FY24. However, net sales for the year rose by 7% to Rs 14,860.77 crore, showcasing the company’s resilience in a challenging market environment. The average daily gas sale also increased, reaching 8.99 million scm in FY25, up from 8.43 million scm in FY24.
In a move to reward its shareholders, IGL's board has recommended a final dividend of Rs 1.5 per share, equivalent to 75% of the face value of Rs 2 each, for the financial year 2024-25. This recommendation follows a previous dividend of Rs 10.50 in 2024 and a 1:1 bonus share issue earlier this year.
As of April 28, 2025, IGL's market capitalization stood at Rs 24,948.03 crore, with its shares trading at Rs 183.80, reflecting a 3.14% increase from the previous close of Rs 178.20. This uptick in share price comes despite the reported decline in profits, indicating investor confidence in the company's growth prospects.
Analysts had anticipated a net profit of Rs 330 crore for the quarter, which IGL exceeded with its reported figures. The overall sales volume growth of 5% in Q4 FY25, along with a sequential increase in average daily sales, suggests that IGL is effectively managing its operations even as input costs rise.
Furthermore, the company's gross turnover for FY25 increased by 6% to Rs 16,399.70 crore, compared to Rs 15,403.13 crore in FY24. This growth was driven by both CNG and PNG sales, with CNG volumes growing by 6% and PNG volumes across domestic, industrial, and commercial sectors witnessing an 11% increase.
Despite the challenges posed by higher input gas costs, IGL remains a prominent player in the natural gas distribution sector in India. The company primarily focuses on providing CNG for vehicles and PNG for domestic, commercial, and industrial use, serving the National Capital Territory of Delhi.
In summary, while IGL's net profit has taken a hit, the company continues to show resilience through increased sales and strategic shareholder rewards. As the energy market evolves, IGL's ability to adapt and maintain its growth trajectory will be closely watched by investors and analysts alike.
