Mahanagar Gas (MGL) Q1 24/25 earnings summary

Executive summary

• Achieved strong volume growth in Q1 FY25, with total sales volume up 13.1% year-over-year to 3.858 MMSCMD, driven primarily by CNG segment expansion.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved and released following board and audit committee review.

• The company operates solely in the natural gas distribution segment.

• Added 35,544 new domestic household connections and 2 new CNG stations, bringing the total to 348 stations as of June 30, 2024.

• CNG vehicle additions reached 20,800 during the quarter, with significant contributions from private cars, taxis, and commercial vehicles.

Financial highlights

• Standalone revenue from operations rose to ₹1,744.57 crore, up 1.48% sequentially and 3.22% year-over-year.

• EBITDA for Q1 FY25 was INR 418 crore, up from INR 394 crore in the previous quarter; EBITDA margin improved to 26.33% from 25.13%.

• Net profit after tax rose to INR 285 crore, a 7.4% increase sequentially.

• Consolidated revenue from operations reached ₹1,832.15 crore, with consolidated net profit at ₹288.77 crore for the quarter.

• UEPL reported revenue of INR 88 crore for the quarter, with a PAT of approximately INR 10 crore.

Outlook and guidance

• Volume CAGR guidance remains at 6%-7% for the core business, with UEPL expected to deliver mid-teen growth rates.

• Management expects to maintain EBITDA per SCM in the INR 10-12 range for the year, despite some margin pressure from recent price reductions.

• No explicit forward-looking guidance was provided, but ongoing legal matters and recent acquisitions may impact future results.