Mahanagar Gas Q3 performance strong, outlook remains firm
Mahanagar Gas Ltd’s (MGL) performance for the quarter remained strong led by recovery in gas demand. At 2.77mmscmd (million metric standard cubic meter per day), total gas volumes rebounded 34% sequentially. Though still down 9% year-on-year, it was in line with estimates, said analysts at Motilal Oswal Financial Services Ltd.
With lower gas prices, the company also saw strong improvement in operating performance. “(Further) As MGL did not pass on entire domestic gas price cut (from Oct-20), and as industrial & commercial segment (I&C) the margin did not decline much, gross margins expanded further to record ₹17.7 per standard cubic meter or SCM,” said analysts at Nomura Global Market Research.
Realization stood at ₹26.1/scm, which is flat year-on-year and sequentially. With expanding gross margins and flat operating expenses earnings before interest tax depreciation and amortisation (Ebitda) was bound to expand. Ebitda/scm at ₹12.4 came much better than ₹9.2 in the year-ago quarter and ₹11.6 in the previous quarter.
