During July-September 2020, Mahanagar Gas Limited (MGL) registered earnings before interest, tax, depreciation and amortisation (EBITDA) per standard cubic meter stood at Rs 11.60. With this, the Mumbai-based city gas distributor recorded an all-time high EBITDA margin, which surged 17 per cent year-on-year as the company reduced its operating expenditure by 53 per cent year-on-year and did not pass on the declining input prices.

Overall, MGL’s July-September 2020 EBITDA stood at Rs 2.21 billion, through down by 19 per cent year-on-year but a massive 176 per cent increase from the April-June 2020 quarter.

In terms of volume, MGL registered a year-on-year fall of about 31 per cent, as compared to the 16 per cent volume decline witnessed by Indraprastha Gas Limited (IGL). On the other hand, Gujarat Gas Limited (GGL) witnessed a 5 per cent volume growth due to strong rebound in industrial segment. According to Jefferies India Private Limited, given the slower recovery in volumes vis-à-vis peers, the gas volume handled by MGL is expected to fall by 25 per cent during 2020-21 as compared to a fall of 17 per cent by IGL and 6 per cent by GGL.

During July-September 2020, MGL’s revenue stood at Rs 5.07 billion, a 35 per cent decline as compared to the corresponding period of the previous year. While this is an improvement from the 65 per cent revenue fall during April-June 2020 quarter, but with the lockdown restrictions gradually easing, some amount of recovery was expected. Nevertheless, according to Jefferies, MGL’s prospects for profit margins in the near future appear strong.