MUMBAI: The lockdown that began in the last week of March was expected to take a toll on Mahanagar Gas Ltd\u2019s (MGL) volumes during Q4 FY20. That has expectedly come through. The city gas distributor\u2019s volumes declined by 9% compared to the December quarter and by 7% on a year-on-year basis.<\/p>\n
What is encouraging is that the company\u2019s profit margins have been resilient, thanks to a decline in gas prices. This, along with lower tax outgo, helped MGL post a healthy 25% year-on-year net profit growth at a time when revenues have declined.<\/p>\n
Jefferies India Pvt. Ltd\u2019s Pratik Chaudhuri wrote in a report on 10 June, \u201cEbitda margin expanded to \u20b99.4 per standard cubic meter (3QFY20: \u20b99\/scm).” Note that this was just slightly ahead of Jefferies\u2019 estimates of ( \u20b99.3\/scm), as operating expenses remained higher despite lower volumes. Ebitda is earnings before interest, tax, depreciation and tax — a key profitability measure.<\/p>\n","protected":false},"excerpt":{"rendered":"
MUMBAI: The lockdown that began in the last week of March was expected to take a toll on Mahanagar Gas Ltd\u2019s (MGL) volumes during Q4 FY20. That has expectedly come through. The city gas distributor\u2019s volumes declined by 9% compared to the December quarter and by 7% on a year-on-year basis. What is encouraging is that the company\u2019s profit margins have been resilient, thanks to a decline in gas prices. This, along with lower tax outgo, helped MGL post a healthy 25% year-on-year net profit growth at a time when revenues have declined. Jefferies India Pvt. Ltd\u2019s Pratik Chaudhuri wrote […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139,130,187],"tags":[],"class_list":["post-356933","post","type-post","status-publish","format-standard","hentry","category-live-mint","category-newspapers","category-oil-gas-live-mint"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/356933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=356933"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/356933\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=356933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=356933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=356933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}