Indraprastha Gas Q4 Preview: Standalone PAT to grow 5% QoQ; margin likely at 16.8%

The city gas distribution company Indraprastha Gas is slated to report its Q4FY24 earnings on Tuesday (May 7, 2024). Zee Business Research desk estimates the company to report better Q4 earnings supported by lower liquefied natural gas (LNG) prices. The standalone revenue of Rs 3,555 crore in the March ended quarter as against Rs 3,556.2 crore in the preceding December ended quarter.

EBITDA or earnings before interest, taxes, depreciation and amortisation i.e. a measure of  profitability is expected to log 6 per cent sequential growth from Rs 564.2 crore in the previous December ended quarter to Rs 597 crore in the January-March period. On the back of an increase in the private vehicles together with expansion in new geographical areas (GAs), IGL is expected to log 4 per cent growth in volume, leading to better EBITDA at the state-run entity. EBITDA margin, however, is expected at 16.8 per cent versus 15.9 per cent in the December quarter. 

PAT for the review period at the CNG retailing company is expected to increase 5 per cent sequentially to Rs 410 crore from Rs 392 crore in the December-ended quarter. 

Furthermore, as the company slashed the price of compressed natural gas (CNG) by Rs 2.5 per kg in March, the desk estimates CNG volumes to log 5 per cent growth during the reporting quarter. The revised prices came into force from March 7, 2024.

Key monitorables

Investors and other stakeholders will keep an eye on the company’s volume and ramp-up outlook in Raigarh. Also, the focus shall be on the sales volume channelised from the new as well as existing GAs. 

Indraprastha Gas share price

Ahead of its results tomorrow, shares of the company ended over 2 per cent lower at Rs 443.7 per share on the BSE. The stock in the last one year has delivered a negative return to the tune of 8 per cent, sharply underperforming the Nifty index.