Mahanagar Gas (MGL) Q4 17/18 earnings summary

Executive summary

• FY18 revenue from operations rose 9.55% YoY to ₹2,452.92 crore; EBITDA increased 21.11% to ₹780.11 crore and PAT grew 21.46% to ₹477.87 crore.

• Overall sales volume grew 5.14%; higher volumes and improved margin capture supported results despite higher gas costs.

• Priorities are deeper penetration in authorized areas and faster Raigad network rollout, alongside expansion of CNG capacity and PNG connections.

Financial highlights

• Revenue from operations ₹2,452.92 crore vs ₹2,239.07 crore in FY17; total income ₹2,510.60 crore vs ₹2,291.73 crore.

• EBITDA ₹780.11 crore vs ₹644.16 crore; EBITDA margin 34.94%, up 327 bps YoY.

• PAT ₹477.87 crore vs ₹393.42 crore; PBT ₹726.51 crore vs ₹600.66 crore.

• Operating cash flow rose to ₹652.13 crore from ₹532.27 crore; cash and cash equivalents were ₹15.02 crore at FY18 close.

• No exceptional items or discontinued operations in either year presented.

Outlook and guidance

• Two-year plan: add ~50 CNG stations and connect 300,000 households while expanding steel and PE pipeline networks.

• Continue Raigad rollout and serve underpenetrated towns, initially using virtual pipeline/cascade supply; 3 additional stations were planned after five became operational.

• FY22 mission targets: increase daily gas distribution volume 50%, customer base 75%+, and turnover 100%.

• Bids were submitted in the ninth CGD licensing round; further geographic expansion may include M&A or joint ventures.