Indraprastha Gas (IGL) Q3 24/25 earnings summary

Executive summary

• Achieved average sales volume of 9.11 MMSCMD in Q3 FY25, up 7% YoY, with CNG up 6% and PNG (domestic) up 17%.

• Standalone revenue from operations for Q3 FY25 was ₹4,146.39 crore, up 6% YoY; consolidated revenue was ₹4,146.09 crore, also up 6% YoY.

• Overcame significant APM gas supply cuts by securing new contracts linked to Henry Hub and Brent, restoring gas availability above 9 MMSCMD.

• Strong double-digit growth in new geographical areas, with outside NCR GAs growing over 30%.

• Crossed one million mark in industrial sales and expanded infrastructure to 899 CNG stations.

Financial highlights

• Standalone EBITDA for Q3 FY25 was ₹363.63 crore, down 36% YoY; EBITDA margin dropped to 10% from 16%.

• Gross turnover for Q3 was ₹4,130 crore, a 6% QoQ increase.

• Standalone net profit for Q3 FY25 was ₹285.82 crore, down 27% YoY; consolidated net profit was ₹325.42 crore, down 32% YoY.

• Depreciation for the quarter was ₹120 crore, expected to rise to ₹135-140 crore next year.

• For the nine months ended Dec 31, 2024, standalone net profit was ₹1,118.36 crore, down 18% YoY.

Outlook and guidance

• Confident of achieving 9.5 MMSCMD exit sales volume for FY25 and targeting 10.5 MMSCMD in the next year.

• Volume growth guidance of 10%-11% annually for FY26 and FY27, with new GAs contributing significantly.

• EBITDA expected to stabilize in the ₹7-₹8 per SCM range annually.

• CapEx for next year projected at ₹13,000-₹15,000 crore, with potential for higher spend if diversification initiatives materialize.

• Interim dividend of 200% (₹4.00 per share) amounting to ₹280 crore paid in Q3 FY25; bonus issue approved in 1:1 ratio for eligible shareholders as of January 31, 2025.