IGL Q2 Results Preview: Net profit likely to rise 5% sequentially, margin may shrink by 21 bps

Gas distribution company Indraprastha Gas Ltd (IGL) is scheduled to report its quarterly financial results on Wednesday, November 1. Analysts widely expect the company to stage a sanguine performance for the three-month period amid muted growth in volumes and the consequent margin pressure owing to flooding in several parts of the national capital. 

According to Zee Business research, IGL is likely to report a 5.4 per cent sequential increase in standalone net profit to Rs 462 crore for the July-September (Q2 FY24) period. The analysts estimate the gas distributor's quarterly revenue to come in at Rs 3,451 crore, up 1.3 per cent compared with the previous three months. 

IGL is expected to register Rs 643 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter of the current financial year, barely changed from Rs 642.4 crore for the previous three months, according to the research. 

Zee Business analysts peg the margin of Indraprastha Gas to stand at 18.64 per cent for the September quarter as against 18.85 per cent for the previous three months. 

How IGL performed in the June quarter (Q1 FY24)

Indraprastha Gas staged a strong performance for the first three months of the financial year. Its standalone net profit grew 32.9 per cent sequentially to Rs 438.4 crore for the quarter ended June 30 while its revenue declined 7.6 per cent to Rs 3,407 crore, according to a regulatory filing. 

The company's margin improved by 630 basis points on a quarter-on-quarter basis to 18.9 per cent for the fiscal first quarter. 

Zee Business analysts had pegged IGL's standalone net profit at Rs 400 crore, revenue at Rs 3,400 crore and margin at 17.3 per cent for the April-June period. 

IGL shares: Past performance

Indraprastha Gas Ltd (IGL) shares lost four per cent of their value in the September quarter, underperforming a 2.4 per cent rise in the headline Nifty50 index.

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