Mahanagar Gas (MGL) Q4 21/22 earnings summary

Executive summary

• FY22 revenue reached ₹3,885 crore; PAT was ₹597 crore versus ₹620 crore in FY21, while average sales volume rose 35.64% to ~3 MMSCMD.

• Operations stayed uninterrupted through pandemic restrictions; expansion added 24 CNG stations and connected 2.62 lakh households to PNG.

• Higher gas procurement costs, driven by short domestic allocations and expensive spot RLNG, weighed on profitability and prompted plans to raise retail prices in phases.

Financial highlights

• Revenue from operations was ₹3,884.90 crore versus ₹2,337.79 crore in FY21; other income was ₹85.74 crore versus ₹80.51 crore.

• Profit before tax was ₹806.26 crore versus ₹833.60 crore; PAT was ₹596.95 crore versus ₹619.58 crore.

• Profit before depreciation and finance cost was ₹1,010 crore versus ₹1,014 crore; the financial statements report no exceptional items or discontinued operations.

• Basic and diluted EPS were ₹60.43 versus ₹62.72 in FY21.

Outlook and guidance

• FY23 plans: add 50 CNG stations, 3 lakh domestic connections and 250+ industrial/commercial customers; expand steel pipeline by 26 km and PE pipeline by 140 km by March 2023.

• Five-year targets include 10 lakh additional households, ~400 CNG stations, ~600 km of steel pipelines and over 7,600 km of PE pipelines.

• Growth plans include LNG dispensing stations, composite dispensing units, digital initiatives and potential expansion through new licenses, alliances, joint ventures or acquisitions.