Mahanagar Gas soars 7% as PAT more-than-doubles in Q2, margins expand

Ebitda margin stood at 30.5 per cent in the Q2FY24 as compared to 16.2 per cent in Q2FY23

Share of Mahanagar gas Ltd (MGL) zoomed 6.6 per cent to Rs 1,055 apiece on the BSE in Monday's intraday trade after the city gas distributor's net profit more-than-doubled to Rs 339 crore in the September quarter.

At 9:40 AM, shares were ruling 3 per cent higher at Rs 1,018 per share as against 344 points, or 0.54 per cent, slide in the benchmark S^&P BSE Sensex. The BSE Oil and Gas index, on the other hand, was up 0.49 pr cent. 

MG's consolidated net profit surged 106 per cent to Rs 339 crore in Q2FY24 as against Rs 164 crore in the year-ago period. It's revenue, however, was flat at  Rs 1,773 crore, up 1.66 per cent from Rs 1,744 crore during the corresponding quarter of the previous fiscal.

The company's total gas sales volume stood at 329 mmscmd (million metric standard cubic meter per day) during the quarter under review, up 6 per cent from the previous quarter. Of the total volume, industrial volume was 46 million SCM, while CNG was 238 million SCM.

Ebitda (earnings before interest, tax, depreciation, and amortisation), meanwhile, soared 89.4 per cent year-on-year to Rs 478.9 crore over Rs 252.8 crore. Ebitda margin stood at 30.5 per cent in the Q2FY24 as compared to 16.2 per cent in the corresponding period in the previous fiscal.

For the first half of FY24, H1FY24, MGL's revenue stood at Rs 3,110 crore (up 3 per cent YoY), Ebitda came in at Rs 1,000 crore (up 86 per cent YoY), and net profit at Rs 710 crore (up 102 per cent YoY).

Ebitda scm stood at Rs 15.7 (up 84 per cent YoY) with total volumes flat at 3.4mmscmd (down 1 per cent YoY).

Over the past one month, shares of MGL have crashed 11 per cent on the bourses as against 2.6 per cent drop in the benchmark Sensex index. 

Earlier this month, Mahanagar Gas entered into a Joint Venture agreement with Baidyanath LNG Private Limited to incorporate a Private Limited Company in India. MGL and BLNG shall subscribe the initial share capital of JVC in the ratio of 51:49.