IGL aims to commission 60 stations in Q4FY24, says MD Kamal Kishore Chatiwal

Indraprastha Gas Ltd (IGL) is aiming to commission as many as 60 gas stations in the fourth quarter of the current financial year, said Kamal Kishore Chatiwal, Managing Director of the state-owned city gas distribution firm. The IGL MD also added that the company will be doing volumes of 9 million mscmd in Q4FY24.

"We have done 8.5, and we are confident that in the fourth quarter, we should be nearing around 9. We will be commissioning around 60 stations during this quarter. On some days of the week, we are already crossing 9 million per day. So we are hopeful that by the end of the fourth quarter, we should be exiting at around nine," Chatiwal told CNBC-TV18 in an interaction.

From 8.6 in the last quarter, IGL's EBITDA/scm declined to 7.23 in the December quarter. The IGL MD said the major reason for the decline has been that there has been a cut in APM allocation twice during the quarter. He added that IGL was not able to increase prices across geographies in the third quarter.

"In the existing GAs, like Delhi, Greater Noida, and Ghaziabad, we increased prices slightly to offset that. But, of course, we could not pass on the entire allocation that was reduced to the consumers," he said.

The IGL MD added that the city gas distribution business takes time to grow.

"CGD business, it takes time once you build the infrastructure, and then the volume comes in and the stations come online," he added.

Meanwhile, IGL reported a profit of ₹392 crore in the October-December quarter of the current financial year, down from ₹534.8 crore in the previous quarter. A CNBC-TV18 poll had predicted a profit of ₹454 crore.