Its results for the third quarter ended 31st Dec 2008 had not been good and that has probably affected the overall performance for the year ended 31st March 2009. But its performance for the fourth quarter of FY09 was good, with improved OPM and NPM on a QoQ basis.
For FY09, IGL registered a turnover of Rs 857.12 crore, posting a sales value growth of 21%.The company reported a 1.14% decline in net profit at Rs.172.47 crore. The biggest impact was on account of the demand of Rs 17.50 crore received from supplier of natural gas for excess drawl of gas for July-December 2008. OPM was down from 45.82% to 38.07% and NPM was down from 24.71% to 20.12%.
The company has signed up for a gas requirement of 0.2 million metric standard cubic metres a day (mmscmd) with GAIL and BPCL. It will also get 0.3 mmscmd of gas from Reliance Industries’ K-G basin.
Over the next 12 months, IGL plans to spend Rs.1600 crore to expand its retail network to 240 retail outlets before the commencement of the Commonwealth Games in October 2010. It has been allotted land for 18 outlets and more are in the process of being allotted. We have been allotted land for 18 outlets and more are in the process of being allotted. The company plans to add 50,000 new PNG connections in the current financial year and take the total PNG connections to 300,000 by 2012.
With 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.