Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Investor Presentation (June 2024)
43 slides from Mahanagar Gas's investor presentation, Jun 7, 2024
Slide 1: Regulation 30 disclosure letter to stock exchanges
Ref: MGL/CS/SE/2024/541 Date: 07th June, 2024 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Ltd P. J. Towers, Exchange Plaza, Bandra –Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai - 400051 Scrip Code/Sym
Slide 2: Investors' & Analysts' Meet – June 07, 2024
INVESTORS’ & ANALYSTS’ MEET – JUNE 07, 2024 1 www.mahanagargas.com
Slide 3: Industry Outlook
Industry Outlook MAHANAGAR GAS LIMITED
Slide 4: Natural Gas Marketing and CGD: Attractive Industry
Natural Gas Marketing and CGD : Attractive Industry Industry Overview: • India is the third-largest energy consumer in the world after China and US. (1) • India’s primary energy consumption has increased from 25.0 EJ in 2012 to 36.44 EJ in 2022, growing at ~46% between 2012 and 2022, reaching ~870 M
Slide 5: India – Natural gas consumption and supply sources
India – Natural gas consumption and supply sources Figures in MMSCMD 176 182 176 176 167 167 157 162 164 144 153 49 141 144 84 48 85 79 93 72 75 91 49 68 51 59 127 109 95 92 98 90 85 85 87 88 91 83 76 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 202
Slide 6: India – Sectoral consumption pattern
India – Sectoral consumption pattern Increasing share of domestic gas in CGD segment 180 Figures in MMSCMD 160 27 17 140 34 36 34 35 31 36 120 34 14 16 14 14 14 9 100 11 12 11 14 8 11 13 19 24 80 12 13 14 16 7 10 7 3 8 9 9 60 21 19 20 25 25 24 20 40 21 26 31 34 42 21 23 20 21 19 18 18 18 16 11 0 201
Slide 7: India – Sectoral consumption pattern
India – Sectoral consumption pattern Domestic (figures in MMSCMD) 45.0 31.1 35.8 11.9 10.9 13.8 14.0 14.5 16.1 26.6 21.5 18.8 17.6 18.0 15.7 11.2 8.3 18.0 11.7 12.8 14.4 15.7 19.0 24.3 27.5 8.5 13.1 22.9 25.0 25.7 24.9 20.6 19.9 20.5 19.0 17.8 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Slide 8: CGD – Future Landscape
CGD – Future Landscape CGD sector to grow at a faster pace as natural gas becomes a preferred fuel (1) Figures in MMSCMD 103 70 25 34 2019 2024 2027 (P) 2030 (P) • The government has planned to invest Trends • CNG enjoys an edge in CV/LCV $67 billion in the natural gas sector over segment with high
Slide 9: MGL: An Introduction
MAHANAGAR GAS LIMITED MGL: An Introduction
Slide 10: Corporate Vision
CORPORATE VISION To be a World Class Consumer & Environment Committed to While creating Friendly provide Safe, value for all our Company & Efficient and Stakeholders Employer of Reliable energy. Choice 9
Slide 11: Shareholding
Shareholding Mahanagar Gas Limited (MGL) was incorporated on 8th May 1995, with GAIL and British Gas (BG) holding Equity of 49.75% each and 0.50% holding by Government of Maharashtra (GoM). MGL was listed on 1st July 2016 on BSE and NSE. Post listing GAIL and BG held Equity of 32.5% each, 10% by
Slide 12: Board and the Executive Management
Board and the Executive Management MGL’s Board is fairly diversified consisting of 8 Board members, Chairman, MD and DMD nominated by GAIL, One Nominee Director from Government of Maharashtra (GoM) and 4 Independent Directors. The Company has very strong parentage of GAIL and in the initial year
Slide 13: Credit Strength
Credit Strength Healthy Profitability and ability to generate cash consistently from core business. Debt free Company with treasury surplus. Highly comfortable working capital cycle. Consistently Rated Long term [ICRA] – AAA Stable and Short term [ICRA] A1+ 12
Slide 14: Governance Structure
Governance Structure The Company Governed through the Board / Committees Formal Board Delegated Power to executive management Business Risk Register in place much before SEBI mandate Documented Contracts and Procurement manual approved by the Board Statutory auditors are M/S Deloitte, Hask
Slide 15: Areas of Operation
Areas of Operation GA3 GA1 & GA2 Authorized GAs ~Area (Sq. Km) Population* Household GA1 - Mumbai & Greater Mumbai 465 12442373 2040500 GA2 - Thane Urban and adjoining 1000 2373568 1469820 Municipalities GA3 - Raigad District 6864 622836 167000 14 *As per census 2011
Slide 16: MGL Performance
MAHANAGAR GAS LIMITED MGL Performance
Slide 17: Infrastructure and Customer Base as on March 31, 2024
Infrastructure and Customer Base as on March 31, 2024 Physical Infrastructure GA1 GA2 GA3 Total CNG Stations (Nos.) 151 149 47 347 Steel Pipeline Length (km) 237 246 116 599 PE Pipeline Length (km) 3,253 2,816 300 6,369 Customer Base GA1 GA2 GA3 Total MGL PNG Connections (Nos.) 12,57,250 11,52,456 8
Slide 18: GA Wise CNG Retail Outlets As on March 31, 2024
GA Wise CNG Retail Outlets As on March 31, 2024 Entity Type GA1 GA2 GA3 TOTAL COCO 9 10 5 24 PVT 9 45 14 68 OMC 118 89 25 232 STUs 15 5 3 23 TOTAL 151 149 47 347
Slide 19: Year on Year Performance - Physicals
Year on Year Performance - Physicals Domestic Connectivity Nos. Domestic Conversions Nos. PE Pipelines Kms Steel Pipelines Kms Total As on March’24 3.05 3.20 Total As on March’24 Connectivity – 24.90 Lakhs PE – 6369 Km 25 Conversions – 16.86 Lakhs 2.62 Steel – 599 Km Nos. in Lakhs 1.98 39 30 23 1.75
Slide 20: Growth backed by increased customer base and coverage area
Growth backed by increased customer base and coverage area CNG Customers (end users) Growth PNG Customers (end users) Growth (In ‘000s) (In ‘000s) 996 1,690 855 919 1,514 751 792 1,376 692 1,256 1,172 1,066 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Sales Volumes in MMSC
Slide 21: Sales Volume Composition
Sales Volume Composition 71.8% FY 2024 14.4% 13.8% CNG Domestic PNG Industrial & Commercial PNG 2.89 2.89 2.98 3.07 3.11 2.53 2.69 2.28 2.39 In MMSCMD 2.07 2.81 2.55 2.55 2.48 2.57 2.27 2.36 2.06 2.14 1.88 114% 154% 120% 101% 106% 107% 105% 92% 106% 83% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 F
Slide 22: Gas Sourcing
Gas Sourcing CNG & Domestic PNG Industrial / Commercial PNG Source APM Non-APM HPHT Term RLNG Spot RLNG GAIL MoPNG GSPCL BPCL HPCL SEIPL Suppliers IOCL PLL TPL RIL /BPEAL GAIL RIL / BPEAL ATPL IGX Firm APM allocation ~70% of the priority volumes. HPHT available to CGD on pr
Slide 23: Revenue and Profitability
Revenue and Profitability REVENUE (INR Bn) Gross Profit (INR Bn) 62.99 62.45 26.26 18.64 35.60 15.93 15.15 29.72 13.92 14.05 27.91 21.53 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 EBITDA (INR Bn) 18.43 PAT (INR Bn) 12.89 11.84 10.53 7.94 7.90 8.85 9.34 9.24 6.20 5.97 5.4
Slide 24: Balance Sheet as on 31st March 2024 (Standalone)
Balance Sheet as on 31st March 2024 (Standalone) INR BN Assets Equity & Liabilities 72.26 72.26 Non-Current Assets Current Assets Equity Liabilities 53.65 18.61 51.43 20.83 PPE 35.43 Inventories 0.40 CWIP 7.74 Investments 10.19 Equity Share Other Non-Current Current Trade 2.81 Investments 6.17 Recei
Slide 25: Other Financial Metrics
Other Financial Metrics Particulars FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Average Realization / SCM 25.69 27.27 26.42 32.25 50.20 47.05 (INR) Gross Margin / SCM (INR) 12.73 14.54 17.20 13.61 14.74 19.71 Opex / SCM (INR) 4.70 5.00 5.84 5.39 5.44 5.93 EBITDA / SCM (INR) 8.22 9.75 11.57 8.44 9.48 13.95 R
Slide 26: Dividend / Share
Creating value for shareholders Dividend Distribution Special Normal 15.00 30.00 Dividend / Share 26.00 25.00 23.00 20.00 20.00 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 25 Note: Higher dividend in FY 20 for completion of 25 years
Slide 27: New Initiatives
MAHANAGAR GAS LIMITED New Initiatives
Slide 28: Acquisition of UEPL
Acquisition of UEPL On 1st February 2024, MGL completed the acquisition of 100% stake in Unison Enviro Private Limited (UEPL), a CGD company having authorisation for 3 geographical areas. 1 2 Ratnagiri (MH) Latur & Osmanabad (MH) CA–01 Mandangad CA–02 CA–03 Dapoli Khed 2 CA–05 CA–04 Chiplun Guhagar
Slide 29: UEPL - Exclusivity
UEPL - Exclusivity Sl. State/Union Date of Marketing Infrastructure Geographical Area (GA) No. Territories Authorization exclusivity till exclusivity till 1 Ratnagiri District Maharashtra 09-Aug-16 08-Aug-23 08-Aug-41 Latur & Osmanabad 2 Maharashtra 24-Sep-18 23-Sep-28 23-Sep-43 Districts Chitradurg
Slide 30: Infrastructure and Customer Base as on March 31, 2024 (UEPL)
Infrastructure and Customer Base as on March 31, 2024 (UEPL) Physical Infrastructure Latur/ Chitradurga Ratnagiri Total Usmanabad Davangere CNG Stations (Nos.) 21 19 16 56 Steel Pipeline Length (km) 0.4 12.1 4.9 17.4 PE Pipeline Length (km) 102.3 48.2 98.3 248.8 Customer Base Latur/ Chitradurga Ratn
Slide 31: New Businesses
New Businesses Mahanagar LNG 3ev Industries Mahanagar LNG Private Limited (MLPL) is a Joint Venture of MGL with the Baidyanth Group, which was incorporated on MGL has forayed into the electric vehicle December 26, 2023. mobility segment with an equity investment in 3ev Industries Pvt. Ltd. LNG as a
Slide 32: Compressed Biogas (CBG)
Compressed Biogas (CBG) The CBG plant will process food waste and convert it into green fuel. This will help mitigate BMC and MGL signed an MoU on 8th June 2023 for environmental concerns, harness setting up of the CBG Plant. renewable energy sources, and promote circular economy. Consultant was app
Slide 33: Future Outlook
Future Outlook The Company has capex plan for FY 2024-25: of ~Rs.1000 Crores, for MGL ~Rs.800 Crore and UEPL ~Rs.200 Crore. for creating pipeline infrastructure steel ~25 kms, PE ~200 kms and CNG station ~60 in MGL and ~30 in UEPL, PNG Domestic Connection of more than 3 Lakhs and ~60 Industria
Slide 34: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) 33
Slide 35: CSR Thematic Areas of Focus
CSR THEMATIC AREAS OF FOCUS MGL VIDYA for Education Admin Cost MGL Hariyali 4% 3% MGL HUNAR for Skills Development MGL Vikas MGL AAROGYA for Health Care and Sanitation 11% MGL Aarogya MGL Vidya 40% 7% MGL SAKSHAM for Empowerment Challenges in expanding CGD infrastructure MGL Saksham 9% MGL VIKAS for
Slide 36: Recognition for CSR
Recognition for CSR The Mahatma Award for working on maximum number of Sustainable Development Goals (SDGs) under the banner “we care” has touched 14 out of 17 SDGs impacting the lives and livelihood of marginal communities. The National Award for Excellence in CSR and Sustainability by showcasi
Slide 37: Health Safety Environment (HSE)
Health Safety Environment (HSE) 36
Slide 38: HSE Management System
HSE Management System • Vision & Policy • HIRA & Life Saving Rules • Senior Management Safety Audits Tours • ISO 9001, ISO 45001, ISO 14001 • National Safety Week • COP Documentation • HSE Performance review & • HSE Legal and other Rewards Program by Top Compliance management • Online Action Trackin
Slide 39: Recognition for HSS&E
Recognition for HSS&E Federation of Indian Chambers of Commerce & Industry (FICCI GIZ) AWARD 2023 in topmost Platinum Category for Excellence in Industrial Disaster Risk Management. “Second” prize at 18th CII Western Region Safety, Health & Environment (SHE) Excellence & Innovation Award 2024 un
Slide 40: Environmental, Social and Governance - ESG
Environmental, Social and Governance - ESG 39
Slide 41: ESG Initiatives
ESG Initiatives Compressed Biogas (CBG) plant of 1000 TPD capacity is planned in Mumbai based on MSW ( Municipal Solid Waste) as feedstock Solar Panels is being installed at Various RO CNG stations at GOM( Ghatkopar, Malad and Mankhurd) and at Savroli LNG station of 10 Kw each capacity Wind tu
Slide 42: Safe Harbor
Safe Harbor • This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. • The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views be
Slide 43: Thank You
Thank You……. MGL House, G-33, Bandra Kurla Complex, Bandra (E) Mumbai – 400 051 T +91 22 6678 5000 https://www.mahanagargas.com CIN : L40200MH1995PLC088133 42