- 11 May 2022
- ICICIdirect Research
Mahanagar Gas reports Q4FY22 numbersMGL - 1030 Change: 2.40 (0.23 %)
News: Revenue increased 51.5% YoY to Rs 1187.6 crore mainly on account of higher realisation in Q4FY22. Sales volume stood at 3.2 mmscmd, up 9.6% YoY and 4% QoQ. Gross margin fell Rs 4.4/scm YoY to Rs 13.3/scm leading to EBITDA at Rs 215.5 crore, down 31.8% YoY. PAT declined 38.1% YoY to Rs 131.8 crore.
Views: MGL results were above our estimates on profitability front as better than estimated gross margins resulted in higher earnings. On QoQ basis, gross margins increased by Rs 4.7/scm which led to an increase of 109% QoQ in EBITDA. Domestic gas prices were increased in APril and spot LNG continues to trade at higher level. The company has further hiked prices CNG and PNG prices to pass on increased costs. We seek management commentary on current sales volume trend and sustainability in margins will be key monitorable going ahead.