| Company | Value | Change | %Change |
|---|
- Profit: Projected to decline by 34%, reaching ₹185 crore compared to ₹282 crore in the previous quarter.
- Revenue: Expected to increase by 2%, amounting to ₹1,752 crore, up from ₹1,712 crore.
- EBITDA: Anticipated to drop by 29%, totaling ₹285 crore versus ₹399 crore in Q2.
- Margin: Forecasted at 16.3%, down from 23.3% in the previous quarter.
What to Watch For
Volume Trends: Volumes are projected to rise by 11% year-on-year (YoY) and 1% quarter-on-quarter (QoQ), reaching 4.07 mmscmd (million metric standard cubic meters per day).
EBITDA per scm: Expected to decline by 44% YoY and 31% QoQ, estimated at ₹7.40, down from ₹13.30 a year ago and ₹10.70 in the previous quarter.
Strategic Commentary:
Investors should pay attention to management’s insights on their strategy regarding volume and margin management.
Retail Price Adjustments: Price increases for retail gas have been lower and delayed, which could impact revenue.
Gas Cost Implications: Rising costs are anticipated due to significant cuts in APM gas allocations and increasing spot LNG prices.
In the previous quarter, Mahanagar Gas reported a weak margin performance due to high gas costs and record volumes that slightly exceeded estimates. Q2 revenue was down 7.7% at ₹1,711.6 crore compared to ₹1,590 crore, while EBITDA decreased by 4.8% to ₹398.5 crore versus ₹419 crore.
The Operating Profit Margin (OPM) was recorded at 23.3%, down from 26.3%. Net profit was slightly down by 0.6% at ₹283 crore compared to ₹284.5 crore. Volumes were reported at 4.1 mmscmd, exceeding estimates of 3.94 mmscmd, with a YoY increase of 13% and a QoQ growth of 6%.
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