Mahanagar Gas Ltd

The development has raised concerns over the company's near-term profitability. In a regulatory filing, MGL informed the exchanges that its allocation of APM natural gas ' used primarily for the supply of piped natural gas (PNG) to households and compressed natural gas (CNG) for transport ' has been reduced by approximately 18% from 16 April 2025, compared to the previous fortnight's allocation. This reallocation comes in line with policy guidelines issued by the Ministry of Petroleum and Natural Gas on 10 August 2022. The policy prioritizes APM gas supply for the city gas distribution (CGD) sector, routed through GAIL (India), based on availability. Due to supply constraints, MGL's shortfall in APM gas is being substituted with costlier New Well/Well Intervention Gas (NWG). This will have an adverse impact on the profitability, MGL said in the filing, while adding that it is in the process of exploring all measures to mitigate the impact. MGL is one of India's leading city gas distribution company providing Compressed Natural Gas (CNG) for mobility and Piped Natural Gas (PNG) to residential, commercial, and industrial customers, serving Mumbai, Urban thane, and Raigad district of Maharashtra. The company reported 30.25% fall in consolidated net profit to Rs 221.24 crore on a 17.76% increase in net sales to Rs 1,847.41 crore in Q3 FY25 over Q3 FY24. Powered by Capital Market - Live

Mahanagar Gas has completed investment in 43,71,065 no. of equity shares of International Battery Company India (IBC India) on 03 February 2025 and consequently, the Company holds 44% of the paid-up equity share capital along with voting rights of IBC India. IBC India was incorporated to carry on the business of undertaking manufacturing, promotion, marketing, distribution, sale and export of the battery cells. Upon the investment, IBC India has become an associate of the Company. Powered by Capital Market - Live

EBIDTA declined by 29.9% YoY to Rs 314.42 crore during the period under review. EBIDTA margin for Q3 FY25 was 17.89% as against 28.60% in Q3 FY24. Total sales volume for the December'24 quarter was 378.69 SCM million, 12.1% YoY. For the period under review, CNG sales volume added up to 268.56 SCM million (up 10.9% YoY) and PNG sales aggregated to 110.13 SCM million (up 15.3% YoY). Mahanagar Gas is in the business of city gas distribution (CGD), presently distribution of natural gas for domestic industrial, commercial customers and CNG vehicles. The company reported 16.5% fall in standalone net profit to Rs 282.8 crore despite a 9% rise in net revenue from operations to Rs 1,711.62 crore in Q2 FY25 over Q2 FY24. The scrip shed 0.03% to currently trade at Rs 1277.40 on the BSE. Powered by Capital Market - Live

Mahanagar Gas announced that the Board of Directors of the Company at its meeting held on 28 January 2025, inter alia, have recommended the interim dividend of Rs 12 per equity Share (i.e. 120%) , subject to the approval of the shareholders.Powered by Capital Market - Live

Net profit of Mahanagar Gas declined 30.25% to Rs 221.24 crore in the quarter ended December 2024 as against Rs 317.18 crore during the previous quarter ended December 2023. Sales rose 17.76% to Rs 1847.41 crore in the quarter ended December 2024 as against Rs 1568.76 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales1847.411568.76 18 OPM %17.5828.60 - PBDT363.29494.04 -26 PBT272.22425.75 -36 NP221.24317.18 -30 Powered by Capital Market - Live

Mahanagar Gas will hold a meeting of the Board of Directors of the Company on 28 January 2025.Powered by Capital Market - Live

Mahanagar Gas has fixed 31 January 2025 as record date for interim dividend, if declared. Powered by Capital Market - Live

Mahanagar Gas Ltd is up for a third straight session today. The stock is quoting at Rs 1311.45, up 3.21% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.07% on the day, quoting at 23541.8. The Sensex is at 77733.58, up 0.15%. Mahanagar Gas Ltd has gained around 0.87% in last one month. Meanwhile, Nifty Energy index of which Mahanagar Gas Ltd is a constituent, has gained around 8.6% in last one month and is currently quoting at 34444.95, down 1% on the day. The volume in the stock stood at 13.03 lakh shares today, compared to the daily average of 7.18 lakh shares in last one month. The benchmark January futures contract for the stock is quoting at Rs 1312.8, up 3.02% on the day. Mahanagar Gas Ltd is up 5.75% in last one year as compared to a 8.75% jump in NIFTY and a 1.95% jump in the Nifty Energy index.The PE of the stock is 10.94 based on TTM earnings ending September 24.Powered by Capital Market - Live

Indraprastha Gas (down 18.66%), Mahanagar Gas (down 13.45%), Gujarat Gas (down 6.36%), Adani Total Gas (down 2.54%) and Gail (India) (down 1.40%) declined. The government's policy prioritizes the allocation of Administrative Price Mechanism (APM) gas to City Gas Distribution (CGD) companies for crucial segments like domestic PNG and CNG for transportation. However, due to limited availability, the allocation has been curtailed, impacting the operations of these companies. Mahanagar Gas, a leading CGD company, has highlighted that the 18% reduction in allocation, effective November 16, 2024, will negatively impact its profitability. Similarly, Indraprastha Gas has reported a 20% reduction, while Adani Total Gas has seen a 13% reduction in their APM gas allocations, which will adversely affect their financial performance. As a result of these developments, multiple analysts have downgraded their ratings on CGD stocks, expressing concerns about their future profitability. To mitigate the impact of reduced gas allocation, Mahanagar Gas is exploring alternative sources of natural gas, such as High-Pressure High-Temperature (HPHT) Gas, New Well/Well Intervention (NWG) Gas sourced from ONGC, and Benchmark-Linked Long-Term Contracts with gas suppliers. The CGD industry is actively engaging with key stakeholders to address the issue and seek a resolution. However, the immediate impact of the reduced gas allocation is likely to weigh on the financial performance of these companies. Powered by Capital Market - Live

In a regulatory filing made post trading hours on Thursday, MGL stated that it has signed a share subscription agreement (SSA) and a shareholding agreement (SHA) with International Battery Company, Inc. (IBC US). Accordingly, both parties will invest in International Battery Company India Private Limited (IBC) to form a joint venture company, which is currently a 100% subsidiary of IBC US. Last month, MGL had announced the signing of an indicative and non-binding term sheet with International Battery Company, Inc, a Delaware Corporation, for a proposed investment by the company in IBC of an amount not exceeding Rs 385 crore, for a stake not less than 40%. IBC US is based in California, USA. The company has put up a pilot facility in Seoul, South Korea for development and production of li-ion cell and has secured certifications such as UN 38.3, BIS, and AIS for their prismatic NMC cells. To address the local market requirement, IBC US and MGL are setting up a giga factory at Bangalore. MGL intends to take at least 40% stake in IBC. The India facility will be a technology agonistic plant which will initially produce prismatic NMC Li-ion cells having wide application across mobility and battery storage sector. Ashu Shinghal, managing director of MGL said: 'MGL has established itself as a leading CGD company and a key player in India's energy landscape. MGL has already committed investments in LNG retail, CBG and Electric Vehicle manufacturing. Foray into battery cell manufacturing will strengthen its position in the evolving energy space which aligns with MGL's objective of a cleaner future. IBC has a capable and experienced team who has worked with leading technology companies globally. Through IBC, MGL and IBC US will set up a giga factory in India for Indigenous battery cell manufacturing. This will enable the consumers to source battery cells locally, which are currently being imported. thereby enhancing the competitiveness of the sector.' Mahanagar Gas is in the business of city gas distribution (CGD), presently distribution of natural gas for domestic industrial, commercial customers and CNG vehicles. The company reported 16.5% fall in standalone net profit to Rs 282.8 crore despite a 9% rise in net revenue from operations to Rs 1,711.62 crore in Q2 FY25 over Q2 FY24. The scrip rose 0.16% to currently trade at Rs 1439.45 on the BSE. Powered by Capital Market - Live