Mahanagar Gas hits fresh 52-week low on disappointing Q4 results

The stock dipped 7% to Rs 785, also its fresh 52-week low on the BSE, after the company reported a lower than expected 5.3% growth in net profit at Rs 1.05 billion in March quarter.

Shares of Mahanagar Gas (MGL) have slipped 7% to Rs 785 per share, also their fresh 52-week low on the BSE in early morning trade, after the company reported a lower than expected year-on-year growth of 5.3% in net profit at Rs 1.05 billion in March quarter owing to sharp decline in margins and marginally lower volume growth. Operational revenue grew 11.7% at Rs 6.44 billion over the previous year quarter.

Analysts on an average had expected profit of Rs 1.26 billion on revenue of Rs 9.72 billion of the quarter.

“EBITDA (earnings before interest, tax, depreciation and amortisation) margin declined to Rs 7.2/scm (vs. our expectation of Rs 8/scm) as the company was unable to pass on QoQ jump in gas cost and other expense. Going ahead, we expect volume growth to moderate due to rising CNG penetration and infrastructure constraints in its key Mumbai market,” analysts at SBICAP Securities said in result review.

At 09:34 am; the stock was trading 6% lower at Rs 790 on the BSE as compared to 0.14% decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 366,157 shares changed hands on the NSE and BSE so far.