Mahanagar Gas Q2 Results: Profit Falls 2%, Margin Contracts 310 Basis Points

Mahanagar Gas Ltd. reported a fall in profit for the quarter ended Sept. 30, 2024.

The bottom line of the city gas distributor decreased 2% quarter-on-quarter to Rs 283.5 crore in the second quarter of the current financial year, as compared to Rs 288.8 crore in the previous quarter, according to its exchange filing on Thursday.

• Revenue up 7.1% to Rs 1,786.25 crore versus Rs 1,665.76 crore.

• Net profit down 2% to Rs 283.5 crore versus Rs 288.77 crore.

• Ebitda down 5% to Rs 413.4 crore versus Rs 436.75 crore.

• Margin at 23.1% versus 26.2%.

MGL's total sales volume saw a 5.9% uptick sequentially to 371.9 million standard cubic metres. Growth was mainly driven by the PNG-industrial segment, which saw a 17% increase in sales volume on a quarter-on-quarter basis.

CNG volumes saw a 5.22% increase to 265.5 million standard cubic metres, while the domestic-PNG segment saw a 2.45% decline in sales volumes.

MGL's board also approved a scheme of merger with its wholly owned subsidiary, Unison Enviro Pvt. Since the merger is between a wholly owned subsidiary and its parent holding company, no consideration would be involved.

As a result, there will be no change in shareholding pattern of MGL due to the proposed merger with Unison Enviro, the company said.

Unison Enviro is engaged in similar business as that of MGL. It has geographical presence in three areas — Ratnagiri, Latur & Osmanabad districts in Maharashtra, and Chitradurga and Davangere districts in Karnataka.

The rational of the proposed scheme include:

• Merger to result in operational synergies and cost optimisation.

• Scheme helps achieve simplification of management structure.

• More efficient utilisation of capital for enhanced development and growth.

• Opportunity to leverage combined assets, capabilities, infrastructure for optimum utilisation of existing resources and economies of scale.