With this price hike, the retail CNG price in Delhi is now ₹83.09 per kg. The price hike took effect from August 29.
The prices were increased to partly offset the sharply higher imported spot liquefied natural gas (LNG) costs, the company said in a statement.
Global LNG prices have nearly doubled since the West Asia crisis intensified in February. Disruptions through the Strait of Hormuz and higher European gas-storage demand adding pressure.
CNG prices in Delhi have gone up by 7.8% during the six-month Iran war, which began on February 27. The rise in prices has been compared till August 27. In comparison, the Europe Title Transfer Facility (TTF) gas is up 105% and Asia Japan Korea Maker (JKM) LNG is up 113%.
IGL said it will continue optimising gas sourcing costs to keep CNG prices competitive and ensure reliable supplies.
The latest price hike by IGL will ease margin pressure for the company and improve its earnings before interest tax depreciation and amortization (EBITDA) per kg, according to analysts.
IGL reported its first quarter earnings earlier this month, where net profit declined by 29.5% to ₹240 crore from ₹341 crore sequentially, while its EBITDA fell 30.4% to ₹293.4 crore from 421.4 crore in the previous quarter..The company’s EBITDA margin narrowed to 6.4% from 10% in the prior quarter. Revenue though, had increased 10% to ₹4,586 crore from ₹4,162 crore.
IGL’s CNG volumes increased 6% from last year, while domestic PNG volumes were up 7% in the June quarter.
IGL shares ended the previous session 0.1% up at ₹147.36 apiece. The stock has declined 3% in the past month and is down 23.23% this year, so far.
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