Mahanagar Gas (MGL) Q4 22/23 earnings summary

Executive summary

• FY23 delivered record revenue of ₹6,921 crore, EBITDA of ₹1,184 crore and PAT of ₹790 crore, alongside continued network and customer expansion.

• Higher gas prices and reduced government-allocated gas increased spot procurement needs, while the revised domestic pricing policy was expected to reduce volatility and support demand.

Financial highlights

• Revenue from operations rose to ₹6,920.96 crore from ₹3,884.90 crore; total income was ₹7,032.84 crore versus ₹3,970.64 crore.

• EBITDA increased 28% to ₹1,184 crore from ₹924 crore; EBITDA margin was 19% versus 26%.

• PAT rose to ₹790.05 crore from ₹596.95 crore; PBT was ₹1,055.54 crore versus ₹806.26 crore.

• EPS was ₹79.98 versus ₹60.43; net worth reached ₹4,134.22 crore at March 31, 2023.

Outlook and guidance

• Over five years, plans target 180 km of added steel pipeline, 1,000 km of PE pipeline and 200 additional CNG stations.

• Core-business plans include more than 3 lakh new CNG vehicles and over 10 lakh PNG household conversions in five years; at least 50 CNG stations are planned for the coming year.

• The revised APM formula sets a $4/MMBtu floor and $6.5/MMBtu ceiling for two years; management expected narrower price bands and improving CNG/PNG volumes.

• Growth priorities include UEPL acquisition, LNG for long-haul transport, EV charging, CBG, bio-ethanol and CGD equipment opportunities.