- Domestic Households Connected: 35,500,44 new connections, totaling nearly 2.53 million households.
- Pipeline Laid: 85.51 kilometers of steel and PE pipeline, totaling over 7,054 kilometers.
- CNG Stations Added: 2 new stations, totaling 348 stations as of June 30, 2024.
- Industrial and Commercial Customers Added: 104 new customers, totaling 4,800,45 customers.
- Raigad GA Domestic Households Connected: 80,854 households.
- Raigad GA CNG Stations: 47 stations.
- Raigad GA Pipeline Laid: 8 kilometers, totaling 424 kilometers.
- Unison Enviro Private Limited CNG Stations: 1 new station, totaling 57 stations.
- Unison Enviro Private Limited Domestic Households Connected: 341 new connections, totaling 27,339 households.
- Unison Enviro Private Limited Industrial and Commercial Customers: 57 customers.
- Overall Average Gas Sales: Increased to 3.858 mmscmd from 3.1412 mmscmd, a 13.1% increase.
- CNG Sales Volume: Increased from 2.481 to 2.772 mmscmd, an 11.7% increase.
- Domestic PNG Sales Volume: Increased from 0.496 to 0.547 mmscmd, a 10.4% increase.
- Industrial and Commercial Sales Volume: Increased from 0.435 to 0.539 mmscmd, a 23.8% increase.
- Quarterly Average Sales: 3.585 mmscmd, a 2.1% increase from the previous quarter.
- Quarterly EBITDA: INR418 crore, compared to INR394 crore in the previous quarter.
- EBITDA Margin: 26.33%, compared to 25.13% in the previous quarter.
- Net Profit After Taxes: INR285 crore, a 7.4% increase from INR265 crore in the previous quarter.
- Unison Enviro Private Limited Sales Volume: 0.168 mmscmd, a 14.51% increase from the previous quarter.
- Consolidated Total Sales Volume: 4.026 mmscmd.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mahanagar Gas Ltd (BOM:539957, Financial) connected 35,500 domestic households this quarter, bringing the total to nearly 2.53 million households.
- The company laid 85.51 kilometers of steel and PE pipeline, increasing the total length to over 7,054 kilometers.
- Two new CNG stations were added, bringing the total to 348 stations as of June 30, 2024.
- 104 industrial and commercial customers were added this quarter, totaling 4,800 customers.
- Overall average gas sales increased by 13.1% year-over-year, from 3.1412 mmscmd to 3.858 mmscmd.
Negative Points
- Sales volume for industrial and commercial segments decreased marginally by 2.13% from the previous quarter.
- Domestic PNG sales volume decreased by 2.8% from the previous quarter.
- The APM allocation for the priority sector decreased from 73-74% in the previous quarter to 69% this quarter.
- There is potential pressure on margins due to a price reduction in July.
- The company faces uncertainties regarding the future of APM gas allocation and its impact on gas costs.
Q & A Highlights
Q: What was the percentage of priority sector allocation for this quarter? And any sense you can give us in terms of what that number would be for the rest of the year?
A: Current quarter APM allocation for the priority sector, that is CNG and domestic put together, was in the range of around 69%. Previous quarter was around 73%-74%. Going forward, we will have to wait and watch how it moves. (Unidentified_4)
Q: In terms of margins, is Q1 run rate something that we should see sustaining or is there some scope for improvement, particularly if spot LNG prices remain at moderate levels?
A: We have been able to maintain or marginally improve our blended cost for the priority sector. If spot LNG prices remain in the current range or go down, we are hopeful to maintain gas costs. However, there could be little pressure on the margin due to price reductions in July. (Unidentified_4)
Q: Given the strong volume growth numbers, should we still hold on to the guidance of about 7%-plus? And what kind of growth should be built for Unison?
A: Our CAGR volume guidance remains the same, slightly more than 7%. For Unison, we expect the volume growth to be more than 10% on a year-on-year basis for at least two years. (Unidentified_6)
Q: Considering the strong PNG volume growth, what were the CNG vehicle addition details during the quarter? And any updates on CNG buses addition by MSRDC?
A: During the quarter, roughly about 20,800 vehicles were added to CNG. MSRDC added about 90 buses during the quarter. (Unidentified_6)
Q: What was the CapEx during the quarter and how many new CNG stations additions or upgradations are expected in FY25?
A: During the quarter, we incurred CapEx in the range of around INR250 crores. We expect to add more than 50 stations in MGL alone and another 25 stations in Unison Enviro, totaling around 75 stations for this financial year. (Unidentified_4)
Q: What is the current APM gas allocation run rate?
A: The current APM gas allocation is in the same range as the quarter, around 69%. (Unidentified_4)
Q: Can you share the topline and EBITDA run rate for Unison Enviro?
A: In terms of volumes, it was roughly 0.17 mmscmd. Revenue is roughly INR88 crores for the quarter. EBITDA is more or less in a similar range as MGL. (Unidentified_4)
Q: When do you see the YoY trend reverse into growth? Will it happen in the second half or by FY26?
A: With volume growth going up, there will be a reduction in OpEx per SCM. We expect that absolute EBITDA will grow and may take three to four quarters to start crossing the current or past year level. (Unidentified_4)
Q: What are your plans for LNG for the next one year as well as for the next three, four years?
A: We have one station in MGL selling around 4,100 kg a day. We have entered into a joint venture with LNG for more new stations. The maximum potential for the current station is up to 12-13 tonnes per day. (Unidentified_4)
Q: Is open access completely off the radar at the moment?
A: The matter related to marketing exclusivity and infrastructure exclusivity is under judicial review. Till the court decides, there is a stay order on any actions against us. (Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
