Mahanagar Gas (MGL) Q4 20/21 earnings summary

Executive summary

• FY21 operations endured COVID-19 disruption while maintaining uninterrupted PNG and CNG supply; lower volumes drove revenue and PAT declines.

• Profitability margins improved as gross margin rose and operating expenses fell; network expansion and customer additions continued despite lockdown constraints.

Financial highlights

• Revenue from operations fell 28.39% YoY to ₹23,377.9 million (₹2,338 crore) in FY21.

• PAT declined 21.92% YoY to ₹6,196 million (₹619 crore); PBT fell 15.24% to ₹833 crore.

• Operating EBITDA fell 11.29% to ₹933.95 crore; EBITDA margin increased to 43.39% from 35.42%.

• EPS was ₹62.72 versus ₹80.33 in FY20; total comprehensive income was ₹620 crore versus ₹792 crore.

• Gross margin as a share of sales improved to 68% from 58%; operating expenses were 13% lower YoY.

Outlook and guidance

• FY22 plans: add or upgrade 50+ CNG stations, connect 300,000+ households, and lay over 41 km of steel and about 163 km of medium-pressure PE pipeline.

• Raigad expansion plans include 12 additional CNG stations and service to 5–6 towns, initially using a virtual pipeline network for domestic PNG.

• Over five years, plans target at least 1 million additional household customers, about 400 CNG stations, ~600 km of steel pipeline and over 7,600 km of PE pipeline.

• Expansion beyond existing territories may use direct bidding, alliances, joint ventures or acquisitions; investment selection will prioritize project economics and shareholder value.