IGL stocks hit all time high as co's net profit double in Sept quarter
IGL stocks hit all-time high in early trade on November 8. The stock is up by almost 10 per cent as profits for the gas major double in September quarter 2019.
A day after IGL reported more than double net profit in its September quarter, the stocks in Sensex jumped to a new high. Indraprastha Gas Ltd stocks rallied by almost 10 per cent to touch its all-time high at the time of writing this report.
Indraprastha Gas Ltd, the city gas distributor in the national capital and adjoining cities, on Thursday reported more than doubling of its September quarter net profit on lower tax rate and rise in gas sales.
Net profit in July-September
Net profit in July-September at Rs 380.72 crore was 103 per cent higher than Rs 187 crore in the corresponding quarter in the last fiscal, the company said in a statement.
The company availed the lower corporate tax rate announced by the government which resulted in a "gain of Rs 143.12 crore," it said.
Total gross sales value registered a growth of 19 per cent in the quarter to Rs 1,866 crore.
Product-wise, CNG sold to automobiles stood at Rs 1,438 crore, registering a growth of 22 per cent, and piped natural gas recorded sales of Rs 428 crore, registering a growth of 10 per cent over the previous year.
Profit before tax for this quarter rose 27 per cent to Rs 367.65 crore.
IGL sells Compressed Natural Gas (CNG) to automobiles and Piped Natural Gas (PNG) to household kitchens and industries in Delhi and adjoining towns of Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Muzaffarnagar and Karnal.
Overall Sales growth of 12%
"IGL registered an overall sales volume growth of 12 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 5.89 million standard cubic meters per day (mmscmd) to 6.57 mmscmd," the statement said, adding that CNG recorded sales volume growth of 10 per cent, while PNG recorded sales volume growth of 12 per cent.
"The increase in gas volumes have been driven by embracing of clean fuels across all segments," it added.