igl: IGL’s underperformance may not reverse for now on pricing woes

The pressure on operating margin of IGL is likely to remain elevated unless the government puts a cap on domestic prices in the wake of surging global prices due to geopolitical tensions.

Synopsis

In the September quarter, the average cost of gas for IGL rose to Rs 35.1 per scm, up Rs 5.1 per scm over the previous quarter, while average realisation increased by Rs 3.3 per scm. This resulted in a sharp compression in margin. The pressure on operating margin of IGL is likely to remain elevated unless the government puts a cap on domestic prices in the wake of surging global prices due to geopolitical tensions.

ETIG: The underperformance of Indraprastha Gas Ltd’s shares is unlikely to reverse in the near term, as dwindling pricing power weighs on the company’s operating margin. The share is down by about 20% since the beginning of 2022. The emerging headwinds for earnings are quite visible from IGL’s performance in the second quarter of FY22.

The supplier of compressed and piped natural gas in the Delhi region had volume growth of 12% year-on-year to

BY

ET Bureau

2 mins read, Last Updated:

Oct 27, 2022, 05:57 AM IST

Gift A Story

Share member-only stories with your friends or family and help them read it for free.

Gifting Limit Reached!

Hey , no more stories left for you to gift.

No worries! You will get a limit of 15 stories next month to share with your friends and family.

Gift This Story

Stories Left!

You can gift upto 15 stories in a month.

• FONT SIZE

  AbcSmall

  AbcMedium

  AbcLarge

• SAVE
• PRINT
• COMMENT

Continue reading with one of these options:

Limited Access

Free

Login to get access to some exclusive stories
& personalised newsletters

Login Now

Unlimited Access

Starting @ Rs120/month

Get access to exclusive stories, expert opinions &
in-depth stock reports

Subscribe Now

To read full story, subscribe to ET Prime

Get Unlimited Access to The Economic Times

₹34 per week

Billed annually at
₹2499 ₹1749

Continue

Already a Member? Sign In now

Already a Member? Sign In now

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Rs 49 for 1st month

Then Rs. 1,749 per year

SUBSCRIBE NOW

Valid only with UPI, Credit & Debit Cards Autopay

Choose Payment Mode & Plan

–

–

–

Subscribe Now

(Credit card mandatory)

You can cancel your subscription anytime

–

–

–

Subscribe Now

(Pay Using Netbanking/UPI/Debit Card)

Netbanking, Credit & Debit Card

Subscribe with Google

₹399/month

Monthly
PLAN

Billed Amount ₹399

₹399

₹208/month

(Save 49%)

Yearly
PLAN

Billed Amount ₹2,499

15
Days Trial
+Includes DocuBay and TimesPrime Membership.

₹399

₹150/month

(Save 63%)

2-Year
PLAN

Billed Amount ₹3,599

15
Days Trial
+Includes DocuBay and TimesPrime Membership.

Subscribe NowSubscribe with

Get ET Prime for just ₹2499 ₹1749/yr

Continue

SAVE BIG THIS DIWALI

Get 1 Year For Free

With 1 and 2-Year ET Prime Membership

Avail Offer

To Read the full Story, Subscribe to ET Prime

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Access the exclusive Economic Times stories, Editorial and Expert opinion

Why ?

• Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

• Stock analysis. Market Research. Industry Trends on 4000+ Stocks

• Clean experience with
  Minimal Ads

• Comment & Engage with ET Prime community

• Exclusive invites to Virtual Events with Industry Leaders

• A trusted team of Journalists & Analysts who can best filter signal from noise