Mahanagar Gas (MGL) Q4 16/17 earnings summary

Executive summary

• FY17 was a strong year: PAT rose 26.5%, average daily gas sales volume grew 5.7%, and customer additions accelerated.

• Sole authorised CNG and PNG distributor across Mumbai, Thane urban and adjoining municipalities, with new Raigad operations underway.

Financial highlights

• Total income ₹2,292 crore; revenue from operations ₹2,239 crore vs ₹2,285 crore in FY16.

• EBITDA ₹697 crore, up 25.22% YoY; PAT ₹393.4 crore vs ₹310.9 crore, up 26.55%.

• PBT ₹601 crore vs ₹472 crore; basic and diluted EPS ₹39.83 vs ₹31.47.

• Operating cash flow ₹546.7 crore; capital expenditure ₹255 crore.

Outlook and guidance

• Growth expected from low CNG/PNG penetration, untapped demand in existing areas and phased infrastructure rollout in Raigad.

• Management expected healthy margins, citing priority APM gas allocation up to 110% of CNG and domestic PNG requirements.

• Management did not foresee a substantial near-term surge in oil and gas prices; forecast remains subject to inherent risks and uncertainties.