Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Q3 FY2024-25 Earnings Presentation
41 slides from Mahanagar Gas's earnings presentation, Jan 29, 2025
Slide 1: Exchange cover letter for earnings call investor presentation
Ref: MGL/CS/SE/2025/597 Date: January 29, 2025 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Bandra – Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai – 400 051 Scrip C
Slide 2: Presentation to Investors December 2024
PRESENTATION TO INVESTORS DECEMBER - 2024 1 www.mahanagargas.com
Slide 3: MGL: An Introduction
MIGL : An Introduction MAHANAGAR GAS LIMITED
Slide 4: One of the largest CGD Companies in India
One of the largest CGD Companies in India Attractive Sole authorized distributor of CNG and PNG in Mumbai, Thane urban including Market adjoining areas and Raigad with more than 25-years of consistent growth (1) Secured Secured availability of domestically produced APM, HPHT and term RLNG at Availab
Slide 5: Our Journey: Record of Growth and Excellence
Our Journey : Record of Growth and Excellence 1995 2004 2011 2014 2016 ADDITIONAL GA ADDITIONAL GA INCORPORATION CITY GAS Authoristion to Thane Urban & STATION Raigad district Listed on operate in Mumbai Adjoining through the & Greater Mumbai Municipalities from CGS at Mahape NSE & BSE competitive f
Slide 6: Areas of Operations (MGL and UEPL)
Areas of Operations (MGL and UEPL) 5
Slide 7: Areas of Operation - MGL
Areas of Operation - MGL Population Areas authorized by ~Area Population* Urban Density PNGRB (Sq. Km) Household (Per sq. Km) Mumbai & Greater 465 26,758 1,24,42,373 27,79,943 Mumbai Thane Urban and adjoining 1,000 6,923 69,22,836 16,14,748 Municipalities Raigad District 6,864 347 23,73,568 1,66,742
Slide 8: Areas of Operation - UEPL
Areas of Operation - 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. ~Area Population Urban Areas authorized by Population (Sq. Density Household Ratnagiri (MH) Latur & Osmana
Slide 9: The MGL Proposition
The MGL Proposition Significant Growth Potential Backed by Favorable Industry ✓ Conditions ✓ Market with Significant Potential for Expansion ✓ Robust Infrastructure in Place to Support Future Growth ✓ Favorable Regulatory Environment ✓ Cost Effective Sourcing Strategy ✓ Strong Operational and Financ
Slide 10: Natural Gas and CGD: Attractive Industry
Market Natural Gas 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 by ~ 51% between 2013 and 2023, reaching ~931 MToe (1) • India’s per capita energy consumption is on
Slide 11: Attractive Fuel Economics
Attractive Fuel Economics Particulars Type of Fuel UOM Jan’25 Dec’24 (1) (2) (1) (2) CNG retains its Price Competitiveness CNG INR / Kg 78.00 78.00 13% 13% vs. Other Fuels 48% 48% Diesel INR / Ltr 90.03 90.03 Comparison of Alternative Fuel Costs Petrol INR / Ltr 103.5 103.5 Domestic PNG INR / SCM 48
Slide 12: Diversified Sourcing Strategy
Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG APM / Source NWG HPHT Term RLNG Spot RLNG Non-APM • GAIL • BPCL MoPNG • GSPCL • SEIPL • HPCL • PLL Suppliers • IOCL • RIL • TPL • ONGC GAIL RIL / BPEAL • ATPL • IOAGPL • IGX • Gas Allocation to CGDs as per MoPNG guidelines
Slide 13: Diversified Sourcing Strategy
Diversified Sourcing Strategy Priority Segment Forms Majority 71.8% FY 2024 Sales Volume Composition • Distribution Majority of MGL’s sales are from CNG and Domestic PNG • Requirement of gas for CNG and D-PNG APM allocation and HPHT available on priority basis to CGD and Spot / Term if required. Non
Slide 14: Infrastructure in place
Infrastructure in place Extensive Supply Network Built Over 25 Years Fixed Asset (Net) of INR 48.33 Bn(1) Infrastructure exclusivity: Capex for FY 2024-25 - INR 7.02 Bn(2) • In Mumbai (expired and extension is in process,) • In Adjoining Areas of Mumbai CNG vehicle Base(3) ~ 1.07 Mn (up to 2030) and
Slide 15: Regulatory Environment Creating Strong Barriers to Entry & Incumbent Advantage
Regulatory Environment Creating Strong Barriers to Entry & Incumbent Advantage Description Implication for MGL Authorization Authorization to lay, build, operate or • Built-in advantage for incumbent expand a CGD network • Authorization for Mumbai, its adjoining areas and Raigad Gas Allocation • As
Slide 16: MGL Growth Strategy
MGL Growth Strategy Network strategy to speed the infra development Increasing population Invest in infrastructure expected to increase to cater to MGL’s larger demand for commercial customer base and Monitor cost of natural and domestic natural improve the quality of gas and endeavor to gas service
Slide 17: Shareholding Pattern as on December 31, 2024
Shareholding Pattern as on December 31, 2024 • FPIs/ NRIs, Promoter, • 26.25% 32.50% Government of Public, IEPF, Maharashtra, • 10.00% Others, 10.15% Domestic Institutional Investors *, 21.10% 16 * Domestic Institutional investors includes Mutual funds, Alternate Investment Funds, Banks, Insurance C
Slide 18: Management Team
Mr. Ashu Shinghal Mr. Sanjay Shende Managing Director (Nominee of GAIL) Deputy Managing Director (Nominee of GAIL) • Over 32 years of experience • Heading Corporate Strategy, Planning & • Over three decades of experience Advocacy, Risk Management, Total Quality • Experience in B2B sales, exports, an
Slide 19: Management Team
Mr. T L Sharnagat Mr. Chakrapani Atmakur Sr. Vice President - Contracts & Procurement Vice President - Human Resources & Corporate and Chief Risk Officer Communication • Over 33 years of experience in Contracts & • Over 33 years of experience Procurement • Prior experience at SI Group(I) Pvt Ltd, Ow
Slide 20: Financial and Operational Performance
Financial and Operational Performance 19
Slide 21: CNG and PNG Customers and Volume Growth
CNG Customers (end users) Growth PNG Customers (end users) Growth (In ‘000s) (In ‘000s) 1,067 1,799 996 1,690 919 1,514 855 1,376 751 792 1,256 692 1,172 1,066 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month ended FY 25 ended FY 25 CNG Volume (mmscmd) PN
Slide 22: 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 December 31, 2024 3.20 Connectivity – 26.83 Lakhs 3.05 Total as on December 31, 2024 Conversions – 17.94 Lakhs PE – 6601 Km 25 2.62 Steel – 622 Km 1.98 1.93 39 3
Slide 23: Revenue and Profitability
Revenue and Profitability REVENUE (INR Bn) Gross Profit (INR Bn) 62.99 62.45 26.26 CAGR CAGR 17.5% 50.59 13.5% 18.64 18.14 35.60 15.93 15.15 13.92 14.05 27.91 29.72 21.53 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month ended FY 25 ended FY 25 EBITDA (INR
Slide 24: Operating Cash Flow and Capex
Operating Cash Flow (INR Bn) Capex (INR Bn) 7.7 15.6 7.1 7.0 6.5 11.3 9.9 9.7 9.0 4.3 8.1 3.6 3.4 6.8 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Nine month ended FY 25 ended FY 25 Note: (1) Capex includes pipeline infrastructure constructed, purchase of fixed
Slide 25: Key Financial Parameters
Nine Months Particulars UOM FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 ended FY 25 Average Sales INR / SCM 25.69 27.27 26.42 32.25 50.20 47.05 45.66 Realisation Gross Margin INR / SCM 12.73 14.54 17.20 13.61 14.74 19.71 16.30 Opex INR / SCM 4.70 5.00 5.84 5.39 5.44 5.93 6.20 EBITDA INR / SCM 8.22 9.75 11.5
Slide 26: Dividend Distribution
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: Special dividend in FY 20 on 25th anniversary of MGL
Slide 27: Appendix
Appendix MAHANAGAR GAS LIMITED
Slide 28: Board of Directors – As on December 31, 2024
Board of Directors – As on December 31, 2024 Mr. Sandeep Kumar Gupta, Chairman (Non-Executive Director - Nominee of GAIL) • Chairman & Managing Director of GAIL (India) Limited • He has wide experience of over 34 years in Oil & Gas Industry. • Before GAIL, he held difference positions at Indian Oil
Slide 29: Board of Directors – As on December 31, 2024
Board of Directors – As on December 31, 2024 Dr. Harshadeep S. Kamble, Non-Executive Director (Nominee of Government of Maharashtra) • On the Board w.e.f November 11, 2022 • Principal Secretary (Industries), Government of Maharashtra. • Chairman of Prime Minister Employment Generation Scheme and Exp
Slide 30: Board of Directors – As on December 31, 2024
Board of Directors – As on December 31, 2024 Mr. Harish Kumar Agarwal, Independent Non-Executive Director • On the Board w.e.f. August 24, 2024 • He has over 40 years’ of experience working with two of the India’s leading conglomerate and dominant Companies i.e. Reliance Industries Limited and India
Slide 31: Subsidiaries, JVs and other Investments
Subsidiaries, JVs and other Investments 30
Slide 32: Subsidiaries, JVs and other Investments
Subsidiaries, JVs and other Investments o Mahanagar LNG Private Limited (MLPL) subsidiary of the Company was incorporated on December 26, 2023 – Invested ₹10.20 Crore (51% Equity) for setting up LNG stations for supplying LNG to vehicles. o Unison Enviro Private Limited (UEPL) a CGD company and MGL’
Slide 33: Financial Statements
Financial Statements MAHANAGAR GAS LIMITED
Slide 34: Balance Sheet as on 31st March 2024 (Standalone)
Balance Sheet as on 31st March 2024 (Standalone) Assets Equity & Liabilities 72,260 72,260 Non-Current Assets Current Assets Equity Liabilities 53,650 18,610 51,429 20,831 PPE 35,429 Inventories 231 CWIP 7,743 Investments 10,188 Equity Share Other Non-Current Current Trade 2,806 Investments 6,172 Re
Slide 35: Statement of Profit and Loss
Sr. For the year ended For the year ended Particulars No. 31st March 2024 31st March 2023 I Revenue from Contracts with Customers 68,619.49 69,209.56 II Other Income 1,753.00 1,118.83 III Total Income (I + II) 70,372.49 70,328.40 IV Expenses : Cost of Natural Gas and Traded Items 36,179.02 44,356.39
Slide 36: Statement of Assets and Liabilities
As at As at As at As at As at Particulars 31st March, 2024 31st March, 2023 31st March, 2022 31st March, 2021 31st March, 2020 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 28,317.84 28,317.84 24,580.77 20,409.11 19,262.19 (b) Capital Work-in-Progress 7,086.18 7,086.18 6,159.45 5,60
Slide 37: Statement of Assets and Liabilities (Contd….)
Statement of Assets and Liabilities (Contd….) As at As at As at As at As at Particulars st st st st st 31 March, 2024 31 March, 2023 31 March, 2022 31 March, 2021 31 March, 2020 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.80 987.78 987.78 987.78 987.78 (b) Other Equity 50,440.87 40
Slide 38: Statement of Profit and Loss - Multi-year
For the period ended Sr. Particulars December March March March March March No. 31, 2024 31, 2024 31, 2023 31, 2022 31, 2021 31, 2020 I Revenue from Contracts with Customers 55,509.88 68,619.49 69,209.56 38,848.96 23,377.93 32,644.86 II Other Income 1,376.04 1,753.00 1,118.83 857.38 805.11 989.53 II
Slide 39: Cash Flow Statement
For the year ended PARTICULARS 31.03.2024 31.03.2023 31.03.2022 31.03.2021 31.03.2020 I. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 17,327.55 10,555.39 8,062.58 8,336.04 9,835.37 Adjustments for: Depreciation and Amortisation Expense 2,736.38 2,311.45 1
Slide 40: 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 41: 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 : L40200MH1995PLC0881 33 MAHANAGAR GAS LIMITED Ss