Indraprastha Gas (IGL) Q2 24/25 earnings summary

Executive summary

• Achieved record sales volume of 9.03 million standard cubic meters per day in Q2 FY25, with CNG volumes up 9% and PNG volumes up 12% year-over-year across all segments.

• Standalone and consolidated unaudited financial results for Q2 FY2024-25 were approved and reviewed without qualification by auditors.

• Infrastructure expanded to over 2,200 km steel and 26,000 km MDPE network, serving 2.28 lakh households, 5,000 industrial, and 6,300 commercial customers.

• Added an average of 15,740 new/retrofitted CNG vehicles per month, increasing CNG vehicular population by 10%.

• Interim dividend of 275% (₹5.50 per share) declared, record date set for November 12, 2024.

Financial highlights

• Q2 turnover/standalone revenue rose 7% year-over-year to INR 4,070–4,088.09 crore, the highest ever.

• Standalone net profit for Q2 FY25 was INR 431.09 crore, down 19% year-over-year; consolidated net profit was INR 454.17 crore, down 18%.

• EBITDA for Q2 was INR 536 crore; EBITDA margin declined to 14% from 19% year-over-year.

• Sequentially, sales grew 6% and gross turnover increased 5% from Q1; Q2 PAT was INR 431 crore, up from INR 401 crore in Q1.

• Declared a dividend of INR 5.5 per share, maintaining a payout ratio of approximately 35%.

Outlook and guidance

• Targeting an exit rate of 9.5 MMSCMD for FY25, with 8-10% volume growth expected for FY26.

• CapEx planned at INR 1,700 crore for FY25, with 45-55% allocated to Delhi NCR and the rest to other areas.

• Aspires to maintain EBITDA between INR 6-7 per SCM, though margin pressure is expected due to gas cost changes.

• Board remains confident in business fundamentals and continues to invest in subsidiary and associates.

• Aggressive plans to expand LNG stations to 50 over the next 3-5 years.