The nationwide lockdown since March 2020 has impacted the operations of Mahanagar Gas Limited (MGL), resulting in reduction of sales volume except for domestic gas consumption. MGL’s sales overall sales volume decline by 60 per cent in the first quarter (Q1) of 2020-21 due to the lockdown as compared to previous quarter. On the margin front, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) was 30.6 per cent for Q1 2020-21 as compared to previous quarter EBITDA of 35.5 per cent. Further, MGL’s net profit after tax was about Rs 450 million in Q1 2020-21 as compared to Rs 1.67 billion in Q4 2019-20.
However, in view of easing of lockdown norms, MGL has witnessed an increase in daily sales volume from 25 per cent in April 2020 to 55 per cent in July 2020 compared to normal volumes in pre-lockdown period. Further, in August 2020, its sales volume picked up pace and increased to around 65 per cent.
At present, MGL is operating in Mumbai and Greater Mumbai, Mira-Bhayander, Navi Mumbai, Thane City, Kalyan, Taloja, Ambernath, Dombivli, Ulhasnagar, Badlapur, Bhiwandi, Kharghar and Panvel, and Raigad district (adjacent to existing area of operation) geographical areas (GAs). As of May 31, 2020, MGL has 5,631 km of pipeline infrastructure with infrastructure exclusivity and 256 compressed natural gas (CNG) filling stations, catering to about 0.75 million CNG customers. It supplies piped natural gas to about 1.48 million domestic households in its operational areas.