Oil marketing companies (OMCs) have implemented a reduction of Rs. 30 in the prices of commercial LPG gas cylinders starting July 1, 2024. This adjustment applies to the 19 kg cylinders of liquefied petroleum gas (LPG) supplied to commercial establishments.
This recent reduction marks a continuation of a trend of decreasing prices observed in recent months. On June 1, the cost of a 19 kg commercial LPG cylinder was slashed by Rs 69.50, bringing the price down to Rs 1,676 in Delhi.
The reduction in commercial LPG cylinder prices is expected to provide relief to businesses, especially sectors that rely heavily on commercial LPG.
As a result, the demand for natural gas supplied by city gas distribution companies is expected to increase. Higher gas sales volumes will lead to improved financial performance and profitability for these companies.
The frequent adjustments in LPG cylinder prices at the start of each month reflect the dynamic nature of the market. Various factors, such as international oil prices, taxation policies, and supply-demand dynamics, play a significant role in these pricing decisions.
Listed below are the city gas distribution companies that may benefit from price cut announcement:
Indraprastha Gas Ltd
With a market capitalization of Rs. 36,558 crores, the shares of Indraprastha Gas started Tuesday’s trading session on a higher note at Rs. 529 compared to its previous close of Rs. 524.90. During the trading session, the shares hit a high of Rs. 537.50, gaining around 2 per cent and are currently trading at Rs. 523 apiece.
Looking at the company’s financial performance, the revenue increased by 1.3 percent from Rs. 3,550 crores during the December quarter to Rs. 3,597 crores during the March quarter. On a contrasting note, the net profits declined by 9 percent from Rs. 475 crores to Rs. 433 crores during the same period.
Indraprastha Gas has its operations in NCT of Delhi, Noida, Greater Noida, Ghaziabad, Rewari, Karnal, Kaithal, Kanpur, Muzaffarnagar, Ajmer and Banda with 882 CNG stations, 27 lakhs residential connections and 10,600 industrial/commercial customers.
Mahanagar Gas Ltd
With a market capitalization of Rs. 17,285 crores, the shares of Mahanagar Gas started Tuesday’s trading session on a higher note at Rs. 1,760.05 compared to its previous close of Rs. 1,746.80. During the trading session, the shares hit a high of Rs. 1,858.35, gaining around 3 percent and are currently trading at Rs. 1,745 apiece.
Coming onto the company’s financial statements, the revenue increased by 3 percent from Rs. 1,569 crores in the December quarter to Rs. 1,613 crores during the March quarter. On the other hand, the net profits declined by 21 percent from Rs. 317 crores to Rs. 252 crores during the same period.
Mahanagar Gas Limited (MGL) has a robust network of over 250 CNG stations through 1,268 dispensing points across its areas of operation in Mumbai, Thane and Raigad districts of Maharashtra. MGL supplies CNG to 0.77 million vehicles and piped natural gas to 1.53 million domestic households.
Written By Vaibhav Patil
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