Indus Gas: A Deep Dive into FY 2024 Earnings

Indus Gas (LON:INDI) has recently released its full-year 2024 earnings, revealing a decline in earnings per share (EPS) to US$0.11, down from US$0.17 in the previous fiscal year. This article examines the key factors contributing to this decline and explores the company's strategies for improvement.

The primary driver behind the decrease in EPS was the 32% drop in revenue, which fell to US$42.9 million. This decline was largely attributed to disruptions in gas supply to the company's customer's power plant due to ongoing maintenance of the turbine. The resulting decrease in revenue led to a 35% drop in net income and a slight decrease in profit margin to 47%.


To adapt to the lower revenue, Indus Gas has implemented cost-cutting measures and is exploring new projects and expansion strategies. However, the company has warned that it may seek further external or shareholder funding if needed, which could potentially impact future earnings. The company is also awaiting the extension of its production sharing contract (PSC) to provide clarity on its future operations.

In conclusion, Indus Gas' FY 2024 earnings were significantly impacted by disruptions in gas supply and a resulting decline in revenue. While the company is taking steps to improve profitability, the potential need for additional funding and the uncertainty surrounding the PSC extension may pose challenges to future earnings growth. Investors should closely monitor the company's progress and the resolution of these issues.