Mahanagar Gas (MGL) Q4 18/19 earnings summary

Executive summary

• FY 2018-19 delivered revenue growth of 24.6%, EBITDA growth of 13.5% and PAT growth of 14.3%, alongside 9.2% growth in sales volume.

• Network expansion added 9.25 km of steel and 258.43 km of PE pipeline; the network reached 5,310 km, 236 CNG stations and 1,382+ dispensing points.

Financial highlights

• Revenue from operations rose 24.6% YoY to ₹3,056.79 crore from ₹2,452.92 crore; total income was ₹3,134.51 crore.

• EBITDA increased 13.5% to ₹885.45 crore; EBITDA margin fell 322 bps to 31.7% from 34.0%.

• PAT increased 14.3% to ₹546.39 crore; PAT margin declined to 19.6% from 21.4%.

• PBT rose 15.2% to ₹836.91 crore; basic and diluted EPS were ₹55.31 versus ₹48.38.

• No exceptional items or discontinued operations in the years presented.

Outlook and guidance

• FY 2019-20 plans included 35 CNG station additions/upgrades, 150,000 household connections and 33.14 km of steel plus 262.14 km of PE pipeline.

• The Management Discussion and Analysis section set a higher expansion plan: 46 CNG stations, 225,000 household connections and the same pipeline targets.

• Growth strategy prioritises expansion in existing authorised areas and selective projects with sound economics; geographic growth may use bidding, alliances, JVs or acquisitions.

• Raigad plans included two additional CNG stations and virtual-pipeline supply to underpenetrated towns such as Pen, Ulwe, Roha and Karjat.