Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Investor Presentation (March 2024)
40 slides from Mahanagar Gas's investor presentation, March 2024
Slide 1: Presentation to Investors March 2024
PRESENTATION TO INVESTORS March - 2024 1 www.mahanagargas.com
Slide 2: MGL: An Introduction
MIGL : An Introduction MAHANAGAR GAS LIMITED
Slide 3: 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, its Adjoining Areas Market and Raigad with more than 25-years consistent growth (1) Secured Secured availability of domestically produced natural gas at APM price for Availability of catering t
Slide 4: Our Journey: Record of Growth and Excellence
Our Journey : Record of Growth and Excellence Net Worth INR 51.29 billion New CGD Acquisition JV MLNG & 3EV, 300th CNG dispensing station Achieved MWP target for GA-3 Raigad Started Commercial 200th CNG operations dispensing in Raigad station Listing on NSE and New GA BSE Raigad Pipeline PE – 3,800
Slide 5: Areas of Operation
Areas of Operation (GA1-Mumbai &Greater Mumbai, GA2-Thane Urban and adjoining Municipalities and GA3- Raigad District) Population Urban Areas authorized by ~Area Density Population* Household PNGRB (Sq. Km) (Per sq. Km) Mumbai & Greater 465 26758 12442373 2040500 Mumbai Thane Urban and adjoining 100
Slide 6: The MGL Proposition
The MGL Proposition Significant Growth Potential Backed by Favorable Industry ✓ Conditions ✓ Underpenetrated Market with Significant Potential for Expansion ✓ Robust Infrastructure in Place to Support Future Growth ✓ Favorable Regulatory Environment ✓ Cost Effective Sourcing Strategy ✓ Strong Operat
Slide 7: 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 ~ 46% between 2012 and 2022, reaching ~870 MToe(1) • India’s per capita energy consumption is one
Slide 8: Attractive Fuel Economics
Attractive Fuel Economics CNG Retains its Price Competitiveness vs. Other Commercial PNG Favorably Priced vs. Alternate Fuels Fuels Particulars UoM Particulars UoM Comparison of Alternative Fuel Costs DPNG (1) INR/SCM 47.00 DPNG (1) INR/SCM 47.00 Particulars INR / kg or Commercial INR/Kg 90.71 Comme
Slide 9: Diversified Sourcing Strategy
Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG Source APM Non-APM HPHT Term RLNG Spot RLNG • GAIL • BPCL MoPNG • GSPCL • SEIPL • HPCL • PLL Suppliers • IOCL • RIL • TPL /BPEAL GAIL RIL / BPEAL • ATPL • IGX • Gas Allocation to CGDs as per MoPNG guidelines • Purchase of i
Slide 10: Diversified Sourcing Strategy: Priority Segment
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 if required. Non-Priori
Slide 11: Infrastructure in place
Infrastructure in place Extensive Supply Network Built Over 25 Years Asset Base Fixed Asset of INR 43.37 Bn(1) CNG Customer Base(3) Infrastructure exclusivity: Capex for FY 2023-24 ~ 1 Mn • In Mumbai expired and extension INR 8.47 Bn(2) is in process, • In Adjoining Areas of Mumbai up to 2030 and •
Slide 12: Regulatory Environment Creating Strong Barriers to Entry
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 13: 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 14: Shareholding Pattern as on March 31, 2024
Shareholding Pattern as on March 31, 2024 • • Promoter, FPIs/ NRIs, 32.50% 31.17% • Government of Public, IEPF, Maharashtra, Others, 9.42% 10.00% • FIs and Mutual Fund, 16.91% 14
Slide 15: 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 16: Management Team (continued)
Mr. T L Sharnagat Mr. Chakrapani Atmakur Vice President - Contracts & Procurement and Vice President - Human Resources & Corporate 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, Owens
Slide 17: Financial and Operational Performance
Financial and Operational Performance 17
Slide 18: CNG and PNG Customers and Volume Growth
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 CNG Volume (mmscmd) PNG Volume (mmscmd) 5 yr. CAGR 3.64% 5 yr. CAGR 5.40% 2.492
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 3.20 Total As on March’24 Connectivity – 24.90 Lakhs 3.05 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: 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 21: Operating Cash Flow and Capex
Capex (INR Bn) Operating Cash Flow (INR Bn) 7.7 15.6 7.1 6.5 9.9 9.7 9.0 4.3 8.1 3.6 6.8 3.4 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Note: (1) Capex includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances. (2) Oper
Slide 22: Key Per-SCM Metrics and Ratios
Particulars FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Average Realization / SCM (INR) 25.69 27.27 26.42 32.25 50.20 47.05 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 EBITDA Margin % 31.72% 35
Slide 23: Dividend / Share
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 23 Note: 1. Payout Ratio calculated including Dividend Distribution Tax 2. Higher dividend in FY 20 for completion of 25 years
Slide 24: Appendix
Appendix MAHANAGAR GAS LIMITED
Slide 25: Board of Directors – As on March 31, 2024
Board of Directors – As on March 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 Cor
Slide 26: Board of Directors – As on March 31, 2024
Board of Directors – As on March 31, 2024 Dr. Harshadeep S. Kamble, Non-Executive Director (Nominee of Government of Maharashtra) • On the Board effective from November 11, 2022 • Principal Secretary (Industries), Government of Maharashtra. • Chairman of Prime Minister Employment Generation Scheme a
Slide 27: Board of Directors – As on March 31, 2024
Board of Directors – As on March 31, 2024 Mr. Venkatraman Srinivasan, Independent Non-Executive Director • On the Board effective from August 24, 2021 • He is engaged in audit and assurance practice and direct tax and corporate advisory services since 1984. He specializes in statutory audits of bank
Slide 28: New Acquisition and Investments
New Acquisition and Investments 28
Slide 29: Subsidiaries and other Investments
Subsidiaries and other Investments o On 1st February 2024, MGL has acquired 100% stake in Unison Enviro Private Limited (UEPL). CGD Company having authorisation for 3 Geographical areas. Ratnagiri Latur & Osmanabad Chitradurga & Davangere (Maharashtra) (Maharashtra) (Karnataka) CA–01 Mandangad CA–02
Slide 30: Geographical Areas Authorization and 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 Chitradurga & 3 Karnataka 25-
Slide 31: Subsidiaries and other Investments
Subsidiaries and other Investments o Mahanagar LNG Private Limited (MLPL) subsidiary of the Company was incorporated on December 26, 2023 - ₹5.10 Crore (51% Equity). For setting up LNG stations and supply of LNG to vehicles. o MGL has invested in 3EV Industries Private Limited (3EV). 3EV is in the b
Slide 32: Financial Statements
Financial Statements MAHANAGAR GAS LIMITED
Slide 33: Balance Sheet (Standalone)
Balance Sheet as on 31st December 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
Slide 34: 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 35: 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 36: 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 37: Statement of Profit and Loss - Five Years
For the period ended Sr. Particulars March March March March March No. 31, 2024 31, 2023 31, 2022 31, 2021 31, 2020 I Revenue from Contracts with Customers 68,619.49 69,209.56 38,848.96 23,377.93 32,644.86 II Other Income 1,753.00 1,118.83 857.38 805.11 989.53 III Total Income (I + II) 70,372.49 70,
Slide 38: 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 39: 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 40: 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