Indraprastha Gas surged 5.18% to Rs 413.20 after consolidated net profit jumped 101.2% to Rs 415.82 crore on a 18.9% increase in net sales to Rs 1692.45 crore in Q2 September 2019 over Q2 September 2018.
Meanwhile, the Indraprastha Gas stock was excluded from Morgan Stanley Capital International (MSCI) India Domestic Small Cap Index and included in MSCI India Domestic Index. MSCI announced a semi-annual rebalancing in its Global Standard Index on 7 November 2019. The change will take place as of the close of 26 November 2019.
The stock has traded in traded in the range of Rs 401.15 and Rs 415.45 so far during the day. The counter clocked trading volume of 1.21 lakh shares, which was nearly 3 times its week average of 44,758 shares.
The company's profit before tax rose by 30.3% to Rs 410.08 in the September quarter as compared to the corresponding quarter in the last fiscal. The overall net profit for the quarter was boosted by a substantial 40.3% decline in the total tax expenditure from Rs 94.13 crore in Q2 September 2018 to Rs 56.16 crore in Q2 September 2019.
The company has elected to exercise the option permitted under section 115BAA of the Income-Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019. This resulted in a reduction in current tax expense to the extent of Rs 61.43 crore.
The income tax amendment also resulted in a reversal of net deferred tax liability to the extent of Rs 81.69 crore. Accordingly, the aforementioned tax impact of Rs 143.13 crore have been incorporated in the results of the quarter ended on 30 September 2019.
The Delhi Development Authority (DDA) had raised a total demand of Rs 155.64 crore during 2013-14 on account of increase in license fees for the period starting from April 2007 to March 2014, in respect of sites taken by the company on lease from DDA for setting up compressed natural gas (CNG) stations in Delhi.
DDA, in August 2016, had revised the total demand to Rs 330.73 crore for the period upto 31 March 2016. The matter is currently pending in Delhi High Court and accordingly no provision has been made for the same in the books of accounts of the company.
Indraprastha Gas is a city gas distribution company (CGD) incorporated in 1998. The company supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to the domestic, industrial and commercial sectors in Delhi and the NCR.
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