Profits Flow, Dividends Glow: Mahanagar Gas Delivers a Q4 Powerhouse Performance

Mahanagar Gas Ltd (MGL) released its March quarter figures today with a profit after tax of ₹2.52 billion, though there were cost overhangs still lingering in the city gas distribution business. Profit in the March quarter decreased by 4.8% from ₹2.65 billion year ago in the corresponding quarter due to higher cost weighing on the bottomline, though the company registered strong operating growth, while operating revenue increased by 18.6% to ₹20.39 billion.

 

Revenue growth was driven by a 12.3% increase in total sales volumes, especially in the compressed natural gas business. This operating strength enabled MGL to partly mitigate the effect of increasing costs, which have been a curse for the sector as a result of a lower supply of cheaper, government-guaranteed APM gas, compelling firms to purchase more expensive gas from the spot market.

 

As a token of appreciation to the shareholders, the board has also recommended a final dividend of ₹18 per share in FY25, subject to approval. Over and above the ₹12 interim dividend paid in the year, this takes the dividend of FY25 to ₹30 per share.

 

Mahanagar Gas' performance indicates its strength in the face of industry-wide margin pressures, as the company exceeded analyst expectations on both revenue and profit for the quarter.

 

Source: CNBC-TV18