Shares of this city gas distribution company jumped up to 1 percent in Thursday’s trading session after signing a Memorandum of Understanding (MOU) to establish Compressed Biogas (CBG) plants.
With a market capitalization of Rs. 31,213 crores, the shares of Indraprastha Gas Ltd started Thursday’s trading session on a higher note at Rs. 453 compared to its previous close of Rs. 449. During the trading session, the shares hit a high of Rs. 458, gaining around 1 percent and are currently trading at Rs. 446 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had signed a Memorandum of Understanding (MOU) with two technology partners during India Energy Week 2024 to establish Compressed Biogas (CBG) plants across four states in Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Furthermore, this partnership aims to produce 0.45 MMSCMD (Million Metric Standard Cubic Meters per Day) of biogas from waste, equivalent to approximately 5 percent of IGL’s daily requirements.
Coming onto the company’s financial statement, revenue increased marginally by 3 percent from Rs. 3,459 crores during the September quarter to Rs. 3,556 crores in the December quarter. On a contrasting note, the net profits declined by 14 percent from Rs. 553 crores to Rs. 475 crores during the same period.
The company is focusing on interstate bus transport and LNG in long-haul transportation to mitigate the impact on CNG sales in Delhi. Further, IGL has commissioned 30 EV charging stations and plans to expand to 50 by the end of the financial year.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 21.58 percent during FY 21-22 to 21.13 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 27.78 percent to 27.13 percent during the same timeframe. Furthermore, the net profit margin decreased from 17.71 percent during FY 21-22 to 10.51 percent during FY 22-23.
Headquartered in New Delhi, Indraprastha Gas was incorporated in the year 1998, Indraprastha Gas Limited (IGL) is in the business of city gas distribution in the National Capital Territory of Delhi. The company, which is a joint venture between GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL), provides natural gas for the domestic, transport, and commercial sectors.
Written By Vaibhav Patil
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