At the behest of the Govt, in April, the company had to put its expansion plans on hold. The company had planned to increase the number of CNG dispensing stations to 200 by 2010 from 166 now, and was expecting to supply the gas to 300,000 vehicles and the same number of homes. This has had a negative impact on the future plans of the company.
IGL registered a turnover of Rs 247.56 crore, posting a sales value growth of 18%.The company reported a 15% decline in net profit for the third quarter of the current fiscal at Rs.38.30 crore. The biggest impact was on account of the demand of Rs 17.50 crore received from supplier of natural gas for excess draw of gas for July-December 2008. Though the company has disputed this demand, it has thought it prudent to provide for this in the Q3 quarter.
Over the next two years, IGL plans to spend Rs.500 crore to expand its retail network with the addition of 50 new outlets. It is also ramping up the gas compressing capacity of its existing outlets by 40-50%, to 2.8 million kg of gas per day.
Given the importance given today to environmental friendly companies and priority to petrol/diesel substitutes which are clean, IGL is poised to do well. Being an already established player, it also has the advantage of being amongst the first entrants.