Indraprastha Gas Ltd. (IGL) reported a steep 93% year-on-year decline in net profit for the second quarter, attributing the drop to soaring input gas costs and the company’s efforts to protect consumers from global price fluctuations. Despite an 8% increase in sales volumes to 10.06 million metric standard cubic metres per day (MMSCMD), the financial impact of higher input costs significantly squeezed the company’s margins.
The company’s gross sales turnover surged 35.4% year-on-year to ₹5,999.13 crore, driven by a 9% increase in compressed natural gas (CNG) sales and an 8% rise in piped natural gas (PNG) sales. However, these gains were not enough to offset the financial strain caused by elevated input costs and the decision to shield consumers from price volatility.
IGL’s net profit for the quarter stood at ₹24.38 crore, a dramatic fall from the previous year’s figures. The company’s strategy to maintain stable consumer prices in the face of global market volatility has placed additional pressure on its profitability, highlighting the challenges faced by city gas distributors in balancing operational costs with consumer affordability.