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 up 12%; domestic PNG 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.

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

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

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

Financial highlights

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

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

• PAT for the quarter was ₹285 crore, compared to ₹392 crore in Q3 last year.

• Standalone EPS for Q3 FY25 was ₹4.08, compared to ₹5.60 in Q3 FY24.

• Consolidated total comprehensive income for Q3 FY25 was ₹324.61 crore, down from ₹475.55 crore in Q3 FY24.

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, with margin recovery anticipated in Q4.

• CapEx for next year projected at ₹13,000-₹15,000 crore, including diversification initiatives.

• 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.