- 08 Aug 2022
- ICICIdirect Research
MGL SALES VOLUME GROWS 8.8% QOQ TO 3.4 MMSCMD
MGL - 1288 Change: 8.45 (0.66 %)News: Revenue increased 138.9% YoY to Rs 1593.2 crore in Q1FY23. Sales volume stood at 3.4 mmscmd, an increase of 43.8% YoY and 8.8% QoQ. Realisation was higher by Rs 20.2/scm YoY to Rs 50.8/scm. Higher realisation was offset by sharp rise in raw material cost and gross margins stood at Rs 14.4/scm, down Rs 5.1/scm YoY. Subsequently, EBITDA was at Rs 285.6 crore, down 6.1% YoY. PAT was down 9.3% YoY to Rs 185.2 crore.
View: Results were in line with estimate on profitability front. While sales volume was marginally higher than expected, gross margin was slightly lower than expected. MGL reported better performance QoQ with rise in gross margin (up Rs 1.1/scm) as well as volume. In the current quarter (Q2FY23-TD), spot LNG prices are trading at elevated level. Also, pooled gas (to cater shortfall in APM allocation) price is higher than APM gas price. The company has further hiked prices CNG and PNG prices to pass on increased costs. We seek management commentary on sales volume and margins trend.
Impact: Neutral.