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Indraprastha Gas Limited has reported a consolidated net profit of ₹ 415.82 crore for the second quarter of financial year 2019-2020.
This is more than twice the ₹ 206.62 crore net profit for the same quarter of financial year 2018-2019.
The substantial increase in bottomline can be attributed to a tax gain in the second quarter of the financial year 2019-2020. Instead of a total tax expense of ₹ 108.04 crore in the comparable quarter of the previous fiscal, the company reported a tax gain of ₹ 5.74 crore in the quarter ending September 30, 2019.
“The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019." a company statement said
Accordingly, the Company has recognised provision for income-tax for the six months ended September 30, 2019 basis the revised rates resulting in a reduction in current tax expense to the extent of ₹ 63.34 crores. IGL also re-measured its deferred tax liability on the basis of the rate prescribed in the said section resulting in a reversal of net deferred tax liability to the extent of ₹ 79.78 crores. The total impact of the tax reduction of ₹ 143.12 crores, which has been taken in the current quarter's financial results.
Consolidated total income for the period under review stood at ₹ 1,911.79 crore, 19 per cent higher than the ₹ 1,601.90 crore total income reported by IGL in the quarter ending September 30, 2018.
During second quarter of financial year 2019-2020, CNG sales volume has increased by 10 per cent and PNG sales volumes increased by 12 per cent over the same period last year. Overall, there is 12 per cent increase in sales volume during this quarter over corresponding quarter of the financial year 2018-2019.
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