Indraprastha Gas Lt net profit drops 8.4% in September quarter

Indraprastha Gas Ltd on Wednesday reported an 8.4 per cent drop in September quarter net profit as sales volumes got impacted amid graded relaxation in lockdown restrictions.

Consolidated net profit of Rs 380.45 crore in July-September compared with Rs 415.82 crore net profit in the same period a year back, the company said in a filing to stock exchanges.

With public transport and schools yet to resume, CNG sales fell 20 per cent to 255 million kgs in the second quarter while piped natural gas supplies were 4 per cent lower at 146 million cubic metres.

Total sale volume stood at 506 million standard cubic metres, down 16 per cent over the previous year.

IGL, which retails CNG to automobiles and piped natural gas to households and industries in the national capital and adjoining cities, reported Rs 944 crore revenue from CNG sales, down from Rs 1,257 crore in July-September 2019.

Piped natural gas sales revenue was down 17 per cent at Rs 355 crore.

Later in a statement, IGL said the average daily sales in the quarter was 5.50 million standard cubic metres per day as the lockdown restrictions started getting relaxed.

The total gross sales value during the quarter was Rs 1,434 crore against Rs 1,865 crore during the second quarter of FY20.

"Both physical and financial performance of the company reflect a strong recovery in the second quarter of the fiscal after the gradual easing of restrictions and beginning of unlock period leading to increased economic activity.

"Sales have picked up significantly now and presently have almost touched pre-lockdown levels. The impact of the recovery shall further be observed in results of remaining quarters of the fiscal as educational institutions reopen," it added.