Mahanagar Gas Q4 Results Review - Margin Weakness Offset By Stronger Volume Growth: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Mahanagar Gas Ltd.’s Ebitda inched up 1% YoY to Rs 3.9 billion in Q4 FY24, mainly driven by a 12% YoY rise in volumes, which offset an 11% decline Ebitda/standard cubic metre to Rs 11.5. In Q4, the company completed the acquisition of Unison Enviro Pvt. Ltd.. Besides weaker Ebitda/scm margin, Q4 profitability was hit by a surge in marketing expenses and FY24 CSR expenses being booked 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 the geographical areas-3 region. In geographical areas-2, the discount is provided only to new customers with high gas offtake. This has helped catalyze volume growth, and the management remains confident of growing this segment in double digits.  According to the management, CNG conversion momentum remained robust at ~20,000 in Q4. Mahanagar Gas is seeing good initial response to its marketing scheme in the commercial goods vehicle segment, albeit at a low base..Click on the attachment to read the full report:.HPCL Q4 Results Review - Higher Throughput But Weak GRM: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahanagar Gas Q4 Results Review - Margin Weakness Offset By Stronger Volume Growth: Motilal Oswal

The management guides for volume growth of 6-7% and maintains its Ebitda/scm guidance at Rs 9-11/scm

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Mahanagar Gas Q4 Results Review - Margin Weakness Offset By Stronger Volume Growth: Motilal Oswal

The management guides for volume growth of 6-7% and maintains its Ebitda/scm guidance at Rs 9-11/scm

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