Mahanagar Gas Ltd · NSE:MGL
Mahanagar Gas — Investor Presentation (March 2023)
38 slides from Mahanagar Gas's investor presentation, March 2023
Slide 1: Presentation to Investors March 2023
PRESENTATION TO INVESTORS March - 2023 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 Raigarh with more than 25-years consistent growth (1) Secured Secured availability of domestically produced natural gas at APM price for Availability of catering
Slide 4: Our Journey: Record of Growth and Excellence
Our Journey : Record of Growth and Excellence Net Worth – INR billion 41.34 Started Achieved MWP Commercial target for GA-3 operations in Raigad Raigad 25th Years of Operations 200th CNG New GA dispensing Raigad station 110% Listing on NSE allocation of and BSE domestic gas Pipeline PE – 3,800 km &
Slide 5: Areas of Operation
Areas of Operation (GA1-Mumbai &Greater Mumbai, GA2-Thane Urban and adjoining Municipalities and GA3- Raigarh District) Infrastructure and Customer Base as on April 30, 2023 Physical Infrastructure GA1 GA2 GA3 Total CNG Stations (Nos.) 148 136 28 312 Steel Pipeline 234 234 108 576 GA1 & GA2 Length (
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 ~ 48% between 2011 and 2021, reaching ~846 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 Fuels Commercial PNG Favorably Priced vs. Alternate Fuels Comparison of Alternative Fuel Costs Particulars UoM Particulars UoM Particulars INR / kg or Differential (3) INR / L DPNG (1) INR/SCM 54.00 DPNG (2) INR/SCM 49.00 08%
Slide 9: Diversified Sourcing Strategy
Diversified Sourcing Strategy CNG & Domestic PNG Industrial / Commercial PNG Term Spot Source APM Non-APM RLNG RLNG • BPCL • GAIL MoPNG • Hazira LNG • GSPCL • PLL • HPCL Suppliers • SEMTIPL • IOCL • RIL /BPEAL • TPL GAIL • ATPL • IGX • Gas Allocation to CGDs as per MoPNG guidelines 10th August 2022
Slide 10: Diversified Sourcing Strategy
Diversified Sourcing Strategy Priority Segment Forms Majority FY 23 Sales Volume Composition 72.8% • Distribution Majority of MGL’s sales are from CNG and Domestic PNG • Requirement of APM gas APM allocation plus HPHT priority allocation to CGD and Spot if any. 14.2% 9.0% • Requirement for I&C 4.0%
Slide 11: Infrastructure in place
Infrastructure in place Extensive Supply Network Built Over 25 Years Asset Base Infrastructure exclusivity: CNG Customer Base(3) Fixed Asset of INR 37.62 Bn(1) • In Mumbai continues post 2020, ~0.92 Mn Capex for FY 23 INR 7.32 Bn(2) • In Adjoining Areas of Mumbai up to 2030 and • In Raigarh up to 20
Slide 12: 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 expand • Built-in advantage for incumbent a CGD network • Authorization for Mumbai, its adjoining areas and Raigarh 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 31st March 2023
Shareholding Pattern as on 31st March 2023 • • FIIs / FPIs, Promoter, 30.95% 32.50% • • Government of Maharashtra, 10.00% Mutual Fund, Other, 24.73% 1.81% 14
Slide 15: Management Team
Mr. Ashu Shinghal Managing Director (Nominee of GAIL) Mr. Sanjay Shende Deputy Managing Director (Nominee of GAIL) • Over 31 years of experience • Over 30 years of experience • Heading Corporate Strategy, Planning & Advocacy, Risk Management, Total Quality • Experience in B2B sales, exports, and Man
Slide 16: Management Team (continued)
Mr. Chakrapani Atmakur Mr. Gurvinder Singh, Vice President - Human Resources & Corporate Vice President - Projects Communication • Over 31 years of experience • Over 30 years of experience • Prior experience at SI Group(I) Pvt Ltd, • Prior experience at Nayara Energy Limited Owens Corning (I) Ltd an
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) 919 1,514 855 1,376 751 792 1,256 692 1,172 1,066 609 955 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 CNG Volume (mmscmd) PNG Volume (mmscmd) 5 yr. CAGR 4.66% 5 yr. CAGR 5.36% 0.885 0.
Slide 19: Revenue and Profitability
Revenue and Profitability REVENUE (INR Bn) 62.99 CNG PNG PNG 43.91 35.60 27.92 29.71 22.33 22.50 18.83 20.51 21.52 18.81 15.37 12.97 12.81 6.76 8.83 8.94 8.35 0.20 0.26 0.26 0.20 0.29 0.27 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Gross Profit (INR Bn) 18.64 15.93 15.15 13.92 14.05 12.04 FY 18 FY 19 FY 20
Slide 20: Profitability
Profitability EBITDA (INR Bn) 11.84 10.53 8.85 9.34 9.24 7.80 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 PAT (INR Bn) 7.94 7.90 6.20 5.97 5.46 4.78 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Note: 1) EBITDA = Revenue from Operations - Total expenses excluding Finance Costs and Depreciation and Amortization Expens
Slide 21: Profitability
Profitability EBITDA (INR Bn) 11.84 10.53 8.85 9.34 9.24 7.80 6.44 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 PAT (INR Bn) 7.94 7.90 6.20 5.97 5.46 4.78 3.93 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Note: 1) EBITDA = Revenue from Operations - Total expenses excluding Finance Costs and Depreciation a
Slide 22: Operating Cash Flow and Capex
Capex (INR Bn) Operating Cash Flow (INR Bn) 9.9 9.7 9.0 7.1 8.1 6.5 6.8 6.5 4.3 3.6 3.4 2.7 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Note: (1) Capex includes purchase of fixed assets, including intangible assets, capital work in progress and capital advances. (2) Opera
Slide 23: Per SCM Metrics and Key Ratios
Particulars FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Average Realization / SCM (INR) 22.44 25.69 27.27 26.42 32.25 50.20 Gross Margin / SCM (INR) 12.05 12.73 14.54 17.20 13.61 14.74 Opex / SCM (INR) 4.30 4.70 5.00 5.84 5.39 5.44 EBITDA / SCM (INR) 7.91 8.22 9.75 11.57 8.44 9.48 EBITDA Margin % 34.94% 31.
Slide 24: Dividend Distribution
Dividend Distribution Special Normal 47.31% 43.59% 46.00% 41.37% Dividend / Share Dividend Pay out Ratio % 36.67% 26.00 25.00 32.51% 15.00 23.00 20.00 20.00 6.50 12.50 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 24 Note: 1. Payout Ratio calculated including Dividend Distribution Tax 2. Higher dividend in FY
Slide 25: Appendix
Appendix MAHANAGAR GAS LIMITED
Slide 26: Board of Directors – As on 31st March 2023
Board of Directors – As on 31st March 2023 Mr. Mahesh V. Iyer, Chairman (Non-Executive Director - Nominee of GAIL) • On the Board effective from September 01, 2022 • Director (Business Development), GAIL (India) Limited • Electrical Engineer with more than 36 years of rich and diverse experience in
Slide 27: Board of Directors – As on 31st March 2023
Board of Directors – As on 31st March 2023 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
Slide 28: Board of Directors – As on 31st March 2023
Board of Directors – As on 31st March 2023 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 ban
Slide 29: Financial Statements
Financial Statements MAHANAGAR GAS LIMITED
Slide 30: Statement of Financial Results for the year ended March 31, 2023
Statement of Financial Results for the year ended March 31, 2023 Sr. For the year ended For the year ended Particulars No. 31st March 2023 31st March 2022 I Revenue from Contracts with Customers 69,209.56 38,848.96 II Other Income 1,118.83 857.38 III Total Income (I + II) 70,328.40 39,706.34 IV Expe
Slide 31: Statement of Assets and Liabilities as at March 31, 2023
Statement of Assets and Liabilities as at March 31, 2023 Particulars As at 31st March 2023 As at 31st March 2022 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 28,317.84 24,580.77 (b) Capital Work-in-Progress (CWIP) 7,086.18 6,159.45 (c) Intangible Assets 51.40 52.31 (d) Right of Use
Slide 32: Statement of Assets and Liabilities as at March 31, 2023 (Contd)
Statement of Assets and Liabilities as at March 31, 2023 (Contd….) Particulars As at 31st March 2023 As at 31st March 2022 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 (b) Other Equity 40,354.43 34,985.45 Total Equity (I) 41,342.23 35,973.23 II. Liabilities A. Non-current
Slide 33: Statement of Assets and Liabilities
Statement of Assets and Liabilities As at As at As at As at As at Particulars st st st st st 31 March, 2023 31 March, 2022 31 March, 2021 31 March, 2020 31 March, 2019 ASSETS I. Non-current Assets (a) Property, Plant and Equipment 28,317.84 24,580.77 20,409.11 19,262.19 17,587.53 (b) Capital Work-in
Slide 34: 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, 2023 31 March, 2022 31 March, 2021 31 March, 2020 31 March, 2019 EQUITY AND LIABILITIES I. Equity (a) Equity Share Capital 987.78 987.78 987.78 987.78 987.78 (b) Other Equity 40,354.43 34
Slide 35: Statement of Profit and Loss
Statement of Profit and Loss For the year ended Sr. Particulars 31st March 31st March 31st March 31st March No. 31st March 2021 2023 2022 2020 2019 I Revenue from Contracts with Customers 69,209.56 38,848.96 23,377.93 32,644.86 30,567.93 II Other Income 1,118.83 857.38 805.11 989.53 777.13 III Total
Slide 36: Cash Flow Statement
For the year ended PARTICULARS 31.03.2023 31.03.2022 31.03.2021 31.03.2020 31.03.2019 I. CASH FLOW FROM OPERATING ACTIVITIES Profit before tax as per Statement of Profit and Loss 10,555.39 8,062.58 8,336.04 9,835.37 8,369.12 Adjustments for: Depreciation and Amortisation Expense 2,311.45 1,962.68 1,
Slide 37: 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 38: 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