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Systematix Research Report
Mahanagar Gas Ltd. reported Ebitda was 7% ahead of our estimates largely driven by lower than expected gas cost and profit after tax was 13.5% ahead of our estimates due to higher other income (up 24% QoQ).
Compressed natural gas volume was down 2.6% QoQ (up 3.5% YoY) to 2.5 metric million standard cubic metre per day while domestic piped natural gas was higher by 5.9% QoQ to 0.5 mmscmd and I/C piped natural gas was down marginally by 1.8% QoQ to 0.44 mmscmd. Overall, total volume dipped marginally 1.4% to 3.4 mmscmd.
On a positive note, the management mentioned that city gas distributions are getting priorities for high pressure-high temperature gas allocation for CNG and domestic piped natural gas and they have got ~0.3 mmscmd through gas exchange.
Mahanagar Gas' gross margin increased 5% QoQ to Rs 13.5/standard cubic metre (our estimate Rs 12.7/scm) on lower gas cost. However, higher opex/scm (up 9% QoQ) led to just 2.7% QoQ rise in Ebitda/scm to Rs 8.2 (our estimate Rs 7.6).
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