State-run Indraprastha Gas (IGL) is expected to report flat operating profits during the July-September quarter in the current financial year due to muted volume growth.
Brokerage Prabhudas Lilladhar in a report earlier this month said that the net profit of city gas distribution (CGD) companies is expected to remain flat on a sequential basis in Q2 FY24
“CGD PAT to remain flat Q-o-Q at ₹10 billion, amid muted volume growth and marginal increase in procurement costs,” it added.
Similarly, gas realisation to remain unchanged QoQ at $6.5 per million British thermal units (mBtu).
JM Financial in a report said that Asian spot Liquefied Natural Gas (LNG) price has risen marginally to $12.2 per mBtu in Q2 FY24, against $11.1 per mBtu in Q1 FY24, due to risk of potential LNG supply disruption from Australia.
However, continued strong gas demand from the power sector (to address peak power deficit) is likely to result in three-four per cent Q-o-Q growth in India’s gas demand.
The brokerage said that it expects a steady quarter for IGL due to muted volume growth.
“We expect IGL’s Q2 FY24 EBITDA to be flat Q-o-Q due to volume being largely flattish Q-o-Q on account of the impact of floods in Delhi; we expect EBITDA margin to fall slightly to ₹8.3 per standard cubic meters (SCM) (vs. ₹8.6 per SCM in Q1 FY24),” it added.
IGL supplies Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for households in Delhi, Noida, Greater Noida and Ghaziabad.