Mahanagar Gas Q3 Results Review - Taking Measures To Propel Volume Growth: Motilal Oswal

Motilal Oswal Report

Mahanagar Gas Ltd.’s Ebitda increased by 75% YoY to Rs 4.5 billion in Q3 FY24, mainly driven by a 63% YoY rise in Ebitda/standard cubic metre to Rs 13.3. Volumes grew 8% YoY to 3.7 million metric standard cubic metre per day driven by compressed natural gas and I/C-PNG.

CNG growth was led by an increase in vehicle conversions to 22,400 vehicles in Q3 from ~20,000 in Q2 and ~15,000 in Q1. There was a 30% uptick in CNG passenger vehicle conversions in Q3 due to the ‘CNG Mahotsav’ scheme launched by the company.

Mahanagar Gas spent Rs 100 million in Q3 on the scheme and intends to spend Rs 200 million in Q4.

I/C PNG growth was driven by high consumption among new customers.

The company guarantees a 10% discount on gas prices compared to alternate fuels for the first three years to new customers in geographical areas III region. In GA2, the same benefit is provided to new customers with high gas offtake.

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