Indraprastha Gas Declares 275% Interim Dividend; Reports Q2 Profit Dip Amid Growing Revenue

Indraprastha Gas Limited (IGL), headquartered in Delhi NCR, is a leading Indian natural gas distribution company, providing clean energy solutions for households, industries, and transportation. Established in 1998, IGL is the largest city gas distributor in Delhi and the National Capital Territory, known for its reliable supply of natural gas for cooking and automotive fuel.

Dividend Declaration: IGL’s board has declared an interim dividend of 275% for FY 2024-25, amounting to ₹5.50 per share (on a ₹2 face value). The record date for shareholders to receive this dividend is set for November 12, 2024.

Financial Results for Q2 FY25: For the quarter ending September 30, 2024, IGL reported a 19.41% year-on-year decrease in net profit, coming in at ₹431 crore, down from ₹534.8 crore in the same quarter of the previous year. However, revenue from operations rose by 6.92% year-on-year to ₹3,697 crore. EBITDA also saw an 18.34% decrease, reaching ₹536 crore, with the EBITDA margin narrowing from 19% to 14.5%.

Analyst Update: BOB Capital Markets recently adjusted IGL’s target price from ₹600 to ₹455 due to lower margins and moderated growth expectations, rating it as “HOLD” with an estimated 8% upside. Analysts highlight that, while electric vehicles are expected to affect CNG demand in Delhi, IGL’s established network in Uttar Pradesh and entry into newer markets offer positive growth avenues. They anticipate that CNG vehicles will continue to coexist with electric vehicles in India, especially as battery and grid technology evolves. Additionally, IGL’s recent focus on LNG for long-haul vehicles and expansion into gas-fueled two-wheelers could support its growth trajectory in the years to come.

Disclaimer: This information is for general purposes only and should not be considered financial advice. Market conditions and individual financial situations vary; please consult a professional advisor before making investment decisions. Indraprastha Gas Limited’s performance and dividend announcements are subject to change based on market fluctuations and regulatory updates.