The shares of the clean energy solution provider gained up to 2 percent after the company’s board considered and approved for bonus issue in the ratio of 1:1.
With a market capitalization of Rs 27,051.53 crore, the shares of Indraprastha Gas Ltd were trading at Rs 386.65 per share, increasing around 0.26 percent as compared to the previous closing price of Rs 385.65 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Indraprastha Gas Ltd’s board of directors considered and approved for bonus issue in the ratio of 1:1 which means 1 Bonus Equity Shares of the face value of Rs 2 each fully paid up for every 1 existing equity shares of face value of Rs 2 each fully paid up, to the eligible shareholders.
Financial performance:-
Analyzing the company’s financial condition, revenue ramped up by 7 percent from Rs 3,459 crore in Q2FY24 to Rs 3,697 crore in Q2FY25, during the same time frame net profit jumped by 19 percent from Rs 535 crore to Rs 431 crore.
Volume Growth and Targets:-
The company targets an exit rate of 9.5 MMSCMD for FY’25, focusing on sales growth in new regions. CNG sales are rising, especially in Noida and Ghaziabad, while PNG volumes grew 12% YoY, with increases in domestic (12%), commercial (13%), and industrial (11%) segments.
Capex Plan:-
The company plans a capex of ₹1,700 Crores for FY’25, with ₹500 Crores already spent in the first half. The allocation is split approximately 45%-55% between Delhi NCR and other geographical areas.
LNG Business Development:-
The company operates one LNG station in Ajmer, selling 10,000 kg per day, with plans to commission three more in Dadri, Noida, and Rewari by FY’25. It aims to expand to 50 LNG stations within 3 to 5 years, depending on market growth.
Management outlook:-
Management acknowledges challenges from reduced APM allocations and rising gas prices but remains optimistic about long-term growth, confident in CNG demand due to its competitive pricing over diesel and petrol. Ongoing government discussions on excise duty and GST adjustments could positively impact the industry.
Company profile:-
Indraprastha Gas Limited’s (IGL) business consists of the sale of natural gas. The Company is focused on industrial and commercial business. The Company provides safe and uninterrupted gas supply through its extensive distribution network to transport, domestic, commercial, and industrial consumers.
Written by:- Abhishek Singh
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