Mahanagar Gas (MGL) Q2 24/25 earnings summary

Executive summary

• Achieved 7% volume growth in H1 FY25, with expectations to reach 10% for the full year, driven by strong CNG and industrial/commercial demand.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and released.

• The company operates solely in the natural gas distribution segment.

• Added 58,845 domestic households, 5 CNG stations, and 99 industrial/commercial customers in the quarter.

• Commissioned the first LNG station in Aurangabad and signed a term sheet for an EV battery cell JV.

Financial highlights

• Standalone revenue from operations for H1 FY25 was ₹3,621.98 crore, up 5.93% year-over-year; net profit after tax was ₹567.33 crore, down 19.74% year-over-year.

• Q2 FY25 average gas sales volume rose 13.07% year-over-year to 4.042 MMSCMD.

• Q2 EBITDA was INR 399 crore, down from INR 418 crore in Q1; PAT was INR 283 crore vs. INR 285 crore in Q1.

• Standalone EBITDA for H1 FY25 was ₹817.00 crore, a decrease of 18.31% year-over-year; EBITDA margin dropped to 24.75% from 32.17%.

• Consolidated revenue from operations for H1 FY25 was ₹3,795.02 crore; consolidated net profit after tax was ₹572.27 crore.

Outlook and guidance

• Full-year volume growth guidance raised to 10%, with double-digit growth expected in industrial/commercial segments.

• EBITDA margin guidance maintained at INR 10-12 per SCM, despite APM allocation cuts.

• CapEx for FY25 planned at INR 800-900 crore, with potential to reach INR 1,000 crore.

• The Board approved a scheme of amalgamation/merger of Unison Enviro Private Limited with the company, subject to regulatory approvals.