During Thursday’s trading session, the shares of a leading City Gas Distribution company in India surged nearly 7 percent to Rs. 435.85 on BSE, following the company’s announcement of a revised domestic gas allocation by GAIL, raising its share to 51 percent.
With a market capitalisation of Rs. 29,309 crores, the shares of Indraprastha Gas Limited closed in the green at Rs. 418.7, up by around 2.7 percent, as against its previous closing price of Rs. 407.65.
What’s the News
Indraprastha Gas Limited (IGL) announced that, effective from 16th January 2025, its domestic gas allocations have been revised upwards by 31 percent, as per the communication received from GAIL (India) Limited (the nodal agency for domestic gas allocation).
According to the recent regulatory filings with the stock exchanges, IGL mentioned that this revision will increase the share of domestic gas in the company’s CNG segment from 37 percent to 51 percent.
Additionally, the company has secured extra RLNG volumes on Term Basis at competitive prices, with one of the major suppliers, amounting to approximately 1.0 MMSCMD.
This increase in domestic gas allocation and the signing of additional RLNG volumes are expected to positively impact the profitability of the company.
Previous News
10th December 2024: the Board of IGL approved the issuance of bonus shares in a 1:1 ratio, meaning that eligible shareholders will receive 1 new fully paid-up equity share of Rs. 2 each for every 1 existing fully paid-up equity share of Rs. 2 each held as on the record date.
Financials
Indraprastha Gas reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 7 percent, rising from Rs. 3,459 crores in Q2 FY24 to Rs. 3,698 crores in Q2 FY25.
However, during the same period, the company’s net profit decreased from Rs. 553 crores to Rs. 454 crores, representing a decline of around 18 percent YoY.
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Key Financial Ratios
In terms of key financial metrics, Indraprastha Gas has a Return on Equity (RoE) of 22.1 percent and a return on capital employed (RoCE) of 28.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.01.
Stock Performance
The stock has delivered negative returns of nearly 1.4 percent in one year, as well as around 19 percent returns in the last six months. However, the shares of Indraprastha Gas have given positive returns of about 10 percent in the last one month.
About the company
Incorporated in 1998, Indraprastha Gas Limited, a joint venture (JV) between GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL), is engaged in the business of city gas distribution across different locations in India.
Written by Shivani Singh
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