IGL Q2 profit jumps 30% to Rs 400 crore on higher sales volumes

Indraprastha Gas Ltd, the firm that retails CNG in the national capital and adjoining cities, on Tuesday reported 30 per cent jump in its second quarter net profit on the back of higher sales volumes.

Net profit of Rs 400.54 crore in July-September 2021-22 is compared with Rs 307.94 crore net earning in the same period a year back, the company said in a statement.

Turnover soared 40 per cent to Rs 2,005.07 crore in the second quarter of the current fiscal year (2021-22).

IGL said it registered an average daily sale of 7.24 million standard cubic meters in the quarter as compared to 5.50 million standard cubic meters per day sales in the year-ago period, showing a growth of 32 per cent.

While the CNG segment registered a sales volume growth of 36 per cent, piped natural gas supplies to household kitchens and industries grew 22 per cent during the quarter.

IGL is the largest CNG distribution company in the country, operating city gas distribution (CGD) networks across 27 districts in 10 geographical areas spread across Delhi, Uttar Pradesh, Haryana and Rajasthan.

The financial results showed "a strong resurgence after restrictions due to the second wave of the pandemic," the statement said.

"Both physical and financial performance of the company during the second quarter reflects a strong recovery in 2021-22 after lockdown hit the first quarter due to the second wave of the pandemic."

All the geographical areas where IGL is operating have started generating revenue, the company said adding sales have picked up considerably across all geographies and have shown remarkable growth above pre-lockdown levels.

"They are expected to grow further as the educational institutions open in the coming days," it said referring to CNG-run buses that ply students to educational institutions.